GB Group Ord Shs GBGPF

RE:RE:RE:Can someone knowledgeable explain the RIGHTS offering

[Extalliones]

Mike, the right to purchase another CMED share for every share you currently own only arises in the event that ACB purchases further shares of CMED, or enters into any further lock-up agreements with shareholders.  IF that happens, every shareholder other than ACB and the individuals in the lock-up agreements will have the option to purchase 1 share more for each share they already hold - at a substantial discount compared to the current market rate.  This would result in the percentage of shares that ACB holds in CMED being significantly diluted.  It would also decrease the price per share because of the discount.  In other words, ACB would be shooting itself in the foot by purchasing more shares.  Which is exactly why CMED put the plan in place, and also the reason why it's unlikely that the rights will ever be exercisable.