Not sure I agree with EuroTravelLover's assertion that nobody...

Not sure I agree with EuroTravelLover's assertion that nobody loses in a rights issue because ".... shareholders who participate in the rights issue continue to retain the same percentage ownership (albeit they have paid for the new shares, but then the company is also worth more as a result) of the company."

Firstly, the existing shareholders have to fork out money to retain the same proportion of the company. In isolation, shareholders are obviously losing ground there. Secondly, saying the company is worth more as a result is only true if the share price rises accordingly (the value to the shareholders is defined as what return they would get if they sold their shares, not the cash backing of the company). More commonly, the share price falls to that of the issue price. Again, in isolation, that's a another loss for the shareholder.

of course, the rights offer other benefits - keeping the company afloat for (hopefully) long enough for good things to happen. Tehre can also be a confidence boost if the rights are fully subscribed as investors look around and think the company must have something going for it or people wouldn't ahve bought more shares.

Overall, I think these rights are looking like a good thing for Avexa and I think the share price will probably rise with time. But its a little too strong to suggest the rights issue is all good news for existing shareholders. In retrospect, you'd have been better off not owning any AVX and then coming in in the past few weeks, buying rights for 0.5 -1c and then paying 7c to convert them to real shares. Those people would be much better off than the long term shareholders.