Ann: Renounceable Issue Prospectus , page-12

This rights issue is a serious test for shareholders who, as with most companies, have probably been asking for rights participation rather than placements.

ARU has already placed its 62 cent offerings to raise $17 million.

The offering to shareholders is at great risk if the underwriten take up is poor. The offer of rights to shareholders could be argued by ARU as not worth the cost and effort and will be justification for no further rights offerings to shareholders.

ARU was either sold down deliberately to sub 60 cents or always worth 60 cents.

If the selldown was to discourage shareholders taking up their 1 for 10 rights then it may well have worked.