I wonder why!
I have thought about this rights offering and have a theory about why this particular method of raising money was employed.
1. Honours current shareholders who hold long positions and are not capable of participating in private placements because they are neither exempt or accredited investors.
2. Raised some money but not enought to continue into 2020. Smaller dilution now in the hopes of a higher share price in the future for the next private placement
3. Solidifies control of the company in the hands of the current board and with GSFC purchasing any outstanding rights with the effect of increasing their ownership percentage.
And point 3. is the most important. Given the history of voting at board meetings and the sometime lively views on this bullboard I would suggest that GSFC and the board will take a significant chunk of shares away from the weak hands. If the Phinney group was actually serious about taking over next year they would be jumping all over the shares and the rights. But as they are constantly decreasing and the rights are trading at less than 3 cents I would suggest the current board is winning!
Howlong?