Rights offeringWho is going to exercise the rights at 0.05 per share when you can buy the shares direct at 0.04 - 0.045 (and let the rights expire). Yes, you have to pay brokerage fees, but that amounts to very little.
Don't be suprised to see the shares go beyoud 0.05 in the last few days prior to thr rights expiry date, just to encourage people to take advantage of the rights offering.