Ann: Letter to Shareholders Re Rights Issue , page-2

CR as expected... But why even bother with the right issue if you can buy share on the market for less than $2 ?

I am reading it correctly, or it is simply a crazy time near Xmas ??. Whats the catch here ?


"As previously announced, the offer is a renounceable rights issue to Eligible Shareholders, on the basis of 1 new fully paid ordinary share for every 6 shares held, at an issue price of $2.50 per share (New Shares), to raise approximately $85,423,822 (before costs), based on CuDeco’s undiluted share capital (Rights Issue).

In addition, 1 new attaching listed option will be issued for every 1 new share allotted, with an exercise price of $2.50 and expiring on 31 December 2015 (New Options). Approximately 34,169,529 New Shares and 34,169,529 New Options will be offered under the Rights Issue. As the Rights Issue is renounceable, Eligible Shareholders can trade their entitlements on the ASX.