The rights issue is perhaps one way the creditors can get some of their money back. They are the underwriters of the shortfall , the funds will be used to pay down their debt so they are hoping there are enough suckers to take up their rights to pay down their debt. Never seen a company go from 400 million shares to 17.5 billion in 2 years. Having said that I doubt they will survive to see 17 billion shares on issue I feel for all the past and present holders. To think at what stage I had 400k tied up in it. Thank God I sold out at the first sign if trouble
KRE Price at posting:
6.6¢ Sentiment: None Disclosure: Not Held