Entitlement offers are a company's attempt to suck new investors...

Entitlement offers are a company's attempt to suck new investors in by offering a deal of "Buy 7 shares, get 1 share cheap".

So, if you buy 700,000 shares at the current SP @ 2.5 cents

You are eligible to buy 100,000 shares @ 1.9 cents.

Here's the catch though mate. Once the new shares (entitlement offer) merges with the current market cap, it may cause a dilution of the total shares.

That's why I said the offer of "free" shares at 1.9 is too expensive, you have to take into consideration dilution. And current shareholders appetite whether they will stay and buy more (so they don't lose money post-dilution) or sell and wait for the Sp to go down to buy back in on the cheap side.

My advice, don't buy shares until you know these basics, don't be a punter.