Ann: Trading Halt, page-64

If the record date was last week then maybe that would be a gift.

I'd estimate the SP will drop tomorrow by a third to about 0.030, the price where selling shares to take up rights, or buying shares to participate in the rights, balances out.

Not kind to existing shareholders I'd say.

Existing shareholders can take up rights at 0.025, if they have the cash (I don't). I could sell some shares, I expect there won't be buyers above 0.030, so I won't be making much on the deal.

Only the other hand, ANYONE can buy in at 0.030; either buying on market for the rights, or buying the rights directly. (I guess at best the rights will go for 0.005). Hell, as far as I can see someone can buy $500 tomorrow and then apply for a million dollars in shortfall shares at 0.025 each.

The underwriters can take as many shortfall as they like at 0.025 and sell at 0.030 for +20% profit.

All in all, shareholders will lose 30% from tomorrow, and with the overhang from the underwriters we'll sit at 0.030 for a long time.