to answer your question with an example. If you own 600 shares on the record date, which I think is the 26th Nov. you will be offered the chance to buy 100 Rights. if you don't want them you can sell the on the ASX.
If you do want them, then you pay $250 dollars for them.(100 * $2.50) You will get a shareholder update from CDU, saying you now hold 700 fully paid shares & 100 options. The options expire on the 15th December 2015. You have until then to decide if you want to convert them to full shares. If the share price in December 2015 is higher than $2.50, lets say $3.00, then you pay $2.50 to CDU for each option,and they issue you a full share, & you are $0.50 ahead, so on 100 options you will need to pay $250 before 15th December 2015.
The other choice is that if you buy the rights, and then decide you don't want the options, you can sell them on the ASX.
You now hold 800 shares with a share price of $3.00 each, if that is the share price in Dec 2015.
hope that is ok for you.
cheers
cj
CDU Price at posting:
$1.90 Sentiment: Buy Disclosure: Held