A$360 million / 3 billion shares = A$0.12 per share

Please someone correct me if wrong: A brand new investor willing to have exposure in the recapitalised ARI has to pay $0.12 per share for the rights issue plus whatever price they get the shares on market. But at what price will the rights issue be? and how many shares? who cares! The combination of price and amount of shares will always be equivalent to A$0.12 per existing share (A$360 million / 3 billion shares = $0.12). So, again total cost to enjoy ownership of ARI will be A$0.12 per existing share plus whatever price you get the existing shares on the market for (currently A $0.019 per share). There is demand, no doubt about it, otherwise share price would be $0.001. If you own 100,000 shares be prepared to pay $12,000 to avoid getting diluted, otherwise wait til you receive your renounceable rights parcel which can be sold on market. If iron ore price remains above $50/ton until the close of the rights issue the demand will push its price higher for the tradeable renounceable rights. There is value there, if you sell now you only get today's prices.