Doesn't that mean dilution? Hate to be cynical, but using the "offering new rights" scheme template:
if some of the companies in the past that were going down the tube had offered a new "rights" program to raise money, wouldn't it be an artificial demand? ;
that is, the investors that were already losing money on an existing declining share price of a company could then be asked to throw more money into the company's pot to keep it financed....? Guess if a company pleads with its investors to "buy more shares on the open market to buoy up the share price", would anyone want to take that risk? So isn't it the same net result to offer more "rights" ?
Of course MGM Energy is a more healthy and dynamic company itself, (and i met a nice positive MGM recruiter/engineer at a recent job fair, and was impressed by him) , but i think that all this "rights" package does, is get some more money out of the shareholders, calling the process by a fancy name. And dilutes the existing share value.
Shambano: am i all dead wrong in that assessment ?