Ann: Entitlements Issue Prospectus , page-10

The smart thing to do would be buying up more tomorrow before they go ex rights. Pick some up for 29-30 cents sell the next day for maybe a couple of cents less , but have 25% more rights than you have shares. They can then be sold for 8-10 cents which would be pure profit.

The fair price of the shares when they go ex rights is acound 40 cents (based on a 65 cent share price before the rights issue was announced).
This makes the "fair" value of each right to be around 20 cents. There may initially be a big difference between the fair price and actual price but if you've got the cash and can take advantage of everyone elses forced selling, you could do alright.
It beats me why they are already trading 10 cents below the price they should be at in 2 days when they still have the rights attached now, but won't have then.

I've picked up some more today.

Don't expect to pick up the rights too cheaply!

Like i said, this rights issue does not have a material impact on the actual value of the company, but the punters are suggesting its halved based on current share price.