rights issue opportunity, page-3

No need to re-read it JohnHC. You've got it right on both counts. Co-Investor are swapping their $7m debt for equity at, what appears to be, a bargain price. Yes, with the extra shares on issue this does dilute things quite a bit.

On the plus side, Co-Investor have already invested about $10m in DIG (330m shares at 3c) and are prepared to invest a further $5m in the rights issue. We can choose to invest with them or park our money somewhere else.