Big Move on rights offeringRights offerings generally don't elicit a feeding frenzy, sometimes it's negative for a share price. However this is not your usual offering. By putting a record date two weeks in the future and pricing the right at below the current share price a limited time sale is created. Most rights would be issued only to those who held the shares when the announcement is made. If gas stations told you a day ahead that they were raising the price by a buck a litre wouldn't you line up to buy before the increase? Anyone buying at $1.10 and then exercising the rights is in reality paying $ .75.
Is that a good price? Based on where it's come from and baring any fantastic news there is a good chance for a pull-back. I'm calling $.40. Hope I'm wrong. Love to see a junior with 300 million dollar blue sky valuation. Alan