What you currently hold has zero value. The amount of shares that you currently hold just gives you the right to buy shares at the entitlement offer price of 0.005c. You don't need to take up the offer but if you do you its pro rata of 1 share of every 8 you hold. E.g. If you held 80.000 shares that gives you the right to buy 10.000 shares at 0.005 (valued at $400). That's how I understand it.
