RE: how does this work Nothing to be sorry about - the terms of the offering will come out in a prospectus and all will be revealed with lots of time to consider your next move ... but typically you'll be allocated rights for free, there will be a secondary market for their "market" value, so you can sell them and use the proceeds to buy a few shares ... but if you don't participate fully in taking-up shares pursuant to your rights allocation, then your per share ownership (ie assets per share) will be diluted even though you have the same number of shares you always did, but the dilution is MINUS the cash proceeds that come into the company:
IVN = current shares becomes
IVN = current shares, plus shares pursuant to rights offering, plus proceeds of rights offering
So ... if the rights offering procees do indeed get used to enhance IVN's market value (more production, more resource, new plans unveiled that the market likes), then you'll be better off.
I'd say RioT sees this as a way to shake out some more of the public float into friendly hands, becuase typically retail will sell the rights because they would just as soon buy IVN shares on the market when and if it suits - whereas deep pockets can lock up a greater percentage of the shares, and some of the rights may never get dealt, will expire, which is just some accretive cream in the pocket of the other shareholders, isn't it?
CG
Nice to see the big boys playing in the same sandbox again.