RE:Rights offering"Exercising" of the your rights is you purchasing the right to buy a share @ $0.045.
"Buying" rights at $0.005 would allow you to buy shares for a total price of $0.05.
I believe you are referring to playing an arbitrage.
Anybody that bought rights for $0.0005 + $0.045 = $0.05 can sell those shares at $0.055 for an abitrage profit of 10%.
$0.065 sale would be a 23% profit.
If you don't exercise your rights available to you you will be diluted.
If you exercise all your available rights you have zero dilution because you remain an equal shareholder.
Rights offering can be confusing but are actually the fairest means by which to raise funds and retail investors can participate on an equal basis as "the big boys".