RE:QUESTIONCertainly the question most folks should be asking themselves Firo!
If I recal correctly, when a similar rights offering was announced in February 2019 at .25 cents, it was 1 new share for each existing share currently owned.
https://www.newswire.ca/news-releases/cgx-energy-announces-equity-rights-offering-814449752.html
When it happened on Feb 1, 2019, the share price was .43/share at the time. At the time, I was pretty excited thinking I could grab a bunch of new shares at a nice discount. Of course, when the rights offering fully closed on March 14, the share price had dropped to ~.25 cents. In fact, for a couple weeks thereafter the price even went lower than .25 cents. In essence, the rights offering did nothing for shareholders from a gain perspective as anyone on the street could have also picked up publically traded .25/cent shares on the open market.
Today, they are offering .157 for each share currently held (so significantly less than 1:1 like in Feb 2019). So if one has 10,000 shares currently, you could get like 1570 new ones at $1.63.
Will the share price go back down to reflect this new rights offering during the month of October like it did in 2019? Well, even at .157, that is still an addtional ~45 million new shares added to the float of the company. My guess is the price will go down short term and float in the $1.8-1.7 range for the month of October (as many folks will probably try to swing trade the stock, knowing no news likely will occur before end of the month).
End of day... CGX will have the extra $73MM CAD ($58MM USD) to fully fund Kawa-1 to TD. I don't think much of this new cash will be left remaining to help fund the port or fund the second well (just based on the fact the well will cost close to $90MM USD and CGX as operator is funding the majority of this well).