I've not participated in a rights issue like this before, but I think you are correct, you can buy more on market, but you can also sell your rights too.
5m x $0.001 = $5,000 are what your rights are worth.
If you want to buy more rights on market, you can pay $0.001 per right, then pay another $0.02 (to exercise your right) = $0.021 for the all up share, but you can buy them on market for $0.023, which is saying you should buy the right on market, then pay an additional $0.02.
Looking at the volume in the last few days, it looks like people are doing just that.
The fact its underwritten should give you confidence that it will be well supported are the issue of shares. I'm not going to take up all 8-for-1, but maybe 4-for1, or less. So their assumption of 30% of uptake could be on the money.
That's my take but DYOR.
I've not participated in a rights issue like this before, but I...
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