More math for those who wish to consider the rights offerHi all, I have published a
free blog on Seeking Alpha site. I've given examples of 7 senarios, which can be considered for those who wish to consider the rights offer for their own situation. The below is the summary table. For more details, please go to the link above to read. For anyone who has any question about the math, you can ask me there too if you have a seeking alpha account. GLTA longs!
| Scenario | Sell at 6 cents | New* money | New Average cost |
| A | no | no | $1 |
| B | 60% | no | $0.36 |
| C | 70% | no | $0.33 $0.43 with $11 left over |
| D | no | $102 | $0.14 |
| E | no | $304 | $0.06 |
| F | 60% | $86** | $0.13 |
| G | 70% | $49** | $0.17 |
*This is a speculative, highly risky biotech stock. Therefore, any new money should not be money that you cannot afford to lose or may be needed soon.
**These two scenarios estimate how much new money is needed if x20 rights shares are available. Therefore these amounts are the maximum $ needed.