Funding by a Rights Offering plus a spin out assetThis is fairly straight forward.
Lets assume that NFG wants to raise $200 million.
They put aside 60 million new shares at $4 per share.
Each shareholder gets 2 right for each common share they own.
Two rights gives them the opportunity to buy another share of NFG at $4 per share plus 1 share of a new public company ( NewCo ) that contains a significant asset of NFG that unlocks the value of that asset.
Lets say QWS plus Kingsway and contigous prospect for now.
Those rights will be publicly listed, so the shareholder has the option to sell his rights for cash or exercise them for another share of NFG plus a share of NewCo.
A major shareholder backstops the rights so that the full $240 million is raised .
$5 for admin costs , $35 million to NewCo for working capital and $200 million net to NFG.
Everybody wins.
Its being done all the time.
Why not NFG