I had a similar situation with Norsemen Gold (NGX). Gold...

I had a similar situation with Norsemen Gold (NGX). Gold producer who couldn't mill their ore with gold at $1600 an ounce.

I tried to average down, got diluted to hell and then they effectively went bust with a Deed of Company Arrangement to the new funder. Lost the lot. Good money after bad etc.

If all other SH take their entitlements Magna will stay at 19.2% of 329m shares. If no others take up their entitlements they go from 19.2% to 42% as they have offered to take up the full shortfall.

The more I think about it, it's not the minorities against Magna but the minorities against themselves. If no one else takes their entitlements you are no longer a minority shareholder but an endangered species.

Either way Magna will hold somewhere between 19 and 42% of the equity in the diluted CCU.

The only reason I will take my entitlement is because it looks like less than a million have been sold. What you can't know is how many shareholders will let their shares lapse for Magna to pick up as underwriter.

It's tricky because it requires trust in the holders of the 190m shares not in Magna's hands at present.

Sorry for the how to suck egggs post and good luck.