RE:RE:RE:RE:RE:RE:RE:RE:THE PROBLEM IS THAT DAVID IS NAIVE OF THIS INDUSTRYAtika, your numbers are totally wrong.
They are not giving us free Rights which you added in as a postive in your calculation.
You have to BUY the Rights, so thats an additional expenditure and you have to hope the share price trades well above 64c to make it profitable to exercise your right to acquire yet more shares.
"Each right entitles the holder thereof to subscribe to one common share upon payment of the subscription price of four cents per common share (64 cents per consolidated common share upon the closing of the transaction and the consolidation announced July 24, 2018). "
So its an additional risk the investor is taking on to add to their current most likely losing position.
So, as a real world example, I have 47,000 shares at 11 cents = $5,170 invested.
Current price is 6c, so that is 47,000*0.06 = $2,820 current value.
After the 1 for 16 reverse split, its likely the shares will open around 50c, so my 47,000 shares now are reduced to only 2,937 (they'll probably round down so i'll lose a few more) and at 0.50 the value will now be $1,468.
So, not very great is it? If the share price does well and doubles over time to $1, then I'll have $2,937 and still down 43% on my investment. Still not very exciting.
But you want us to Buy additional Rights as well at 64c a go. So what, i spend another $5,000 or so at 64 cents and 'hope' the share price doubles from there so i can finally get back to breakeven.
This is the most optimistic scenario.
See why i'm not impressed by the deal??