Ann: Offer Document - Rights Issue, page-13

Not sure that's how it works Alet. Don't forget, that market cap is essentially the company enterprise value (EV) plus cash in hand. As the CR delivers additional cash in hand, the market cap should go up by more por less the same amount....hence additional number of shares washes out against a stable price (i.e. issue price). If the price is higher than issue price, then we are ahead (on paper). Additionally, EV for a company like us is almost entirely speculative value as there are no fundamental levels for valuation (eg revenue, profit, bankable asset etc)....and that speculative value is driven essentially by two things:

1. market perception of quality and timing of planned company activities; and
2. market perception of company ability to pursue the plan.

Clearly a successful CR aids with point 2 above and in theory should support positive sentiments behind speculative EV value....particularly as those plans loom near.

So, in this case a rights issue at a discount to recent VWAP is technically accretive for existing holders taking up their full allocation - ceteris paribus.

All IMO.