If it was trading at 4.2 cent pre-announcement , that implies a...

If it was trading at 4.2 cent pre-announcement , that implies a 2.8 cent ex-rights price.
Therefore each right should be worth about 1.3 cents.

Effectively trading at around a 25% discount to its pre right price. A fairly substantial discount for what is merely a fully underwritten financing transaction that is derisking the balance sheet and reducing high interest costs.

I'm simplifing the maths by assuming a 5 for 5 rights issue. In reality its a bit more than that but just saving having to do the calcs.

Its worth a value punt based on this, but don't know enough about the prospects of the company to judge further.

There could be some strong selling for the next couple of days as holders planning on taking up their rights sell out.