The fallacy of rights Many may believe, even our Great Leader, Bates, that the rights issue is the way out of the massive dilution and he may even want to market it at the AGM,if there is one, as a great achievement of his leadership( he is good at it ,presenting black as white and vice-versa) short of going bankrupt, but that is far from the truth.The truth is that if the price of the stock remains depressed for a very long time, say at 2cents, exercising the rights makes no sense, because one can buy the stock at market at 2cents. So what is the point of exercising the rights? Exercising the rights plays right into the hands of the Bondholders because the money from that purchase goes to pay them off, while buying the stock in the secondary market does not. Now if the stock goes up because the company is doing well, yes, then we use the rights and buy the stock at 2cents and resell it at market, otherwise we are on a tread mill. And while we are at it, if Marret wants to sell the company as soon as the conversion of the bonds into equity, shares that is, takes place, they have to issue the rights before the sale occurs as per the Marret Plan. Now, we don't have to exercise those rights for a period of 3 years. So whoever buys the company and at whatever price, if Marret don't want to go into production of met coal, he must honor the rights and obligations spelled out in the Marret Plan. May be it's another coal company that wants to buy Cline and put into production, they will have to buy both the rights and obligations currently specified into the Marret Plan, which is ok with us because we still have 3 years to exercise the rights and buy 1.7billion shares, thus owning 46% of the company.