I was wondering if someone could please explain in simple...

I was wondering if someone could please explain in simple language (as I find it hard to understand the terminology used in the prospectus, etc) what does this capital raising mean in terms of the value of current stock holdings.
Will the current value of stocks held be devalued if you don't take up the offer and pay more?
I saw the below text on page 16 of the prospectus issued on 5/10/2016
"You should note that if you do not participate in the Offer you will have your percentage equity in
the Company reduced. If you take up your full Rights, your percentage holding in the Company
will remain approximately the same. By applying for, and being allotted New Shares and
Attaching Options under the Shortfall Offer, you may see your percentage holding in the Company
increase."
So does the first sentence in the quoted text mean that if you don't participate/buy more shares then the shares you have will be devalued?
Doesn't see right to me. Seems like coercion to try and keep the value of your already dwindling share value.
Thanks.