Ann: Trading Halt, page-19

Typically in situations like this the SP drifts lower as "sophisticated" investors often prefer to bank a quick profit than become long term holders. That is why I agree with you honeysoy that it is not fair to exclude shareholders from the opportunity to participate in the CR.

we can't say for sure whether holders would choose to participate and we can't say for sure whether the price will drop. But that is not the point. The point is shareholders are being denied the opportunity and the opportunity is being offered to "sophisticated" investors.