AFR Street Talk - Dacian Gold bites recap bullet, page-13

OriginallypostedbyDratoz

Lookslikeit'sallgoingtosophisticatedinvestors,nottothecurrentlittleholders.Wearenotsophisticatedenoughtobeallowedtopickupashareat30ctopossiblycompensateforourlossesshouldtheSPrecover.OurDirectorswilllikelytellusthattheydidaplacementtosophisticatedinvestors,ratherthantous,forthesakeofexpediencyandtosaveonthecostofplacement,thus"actinginourinterest".Ihaveseenthistoomanytimesalready.Frankly,Idonotcarewhetherthenewdirectorisagoodorbadguyanymore.IambecomingcynicalabouttheentireASXfarce.

What do you mean?. A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. This type of issue gives existing shareholders securities called rights. With the rights, the shareholder can purchase new shares at a discount to the market price on a stated future date.