From the perspective of a non-holder waiting on the sidelines, I...

From the perspective of a non-holder waiting on the sidelines, I think the fact that they tried to pack the $4m gift with the CR can only point to two plausible paths that the company considered:

1) Management might have thought that this was an opportune time to give potential investors a GOOD OFFER, one that would be beneficial for whoever pays up, and thus give CHM breathing room to run for another year. It turns out, they went with the rights issue. Perhaps this was because they couldn't find anyone. We don't quite know the timeline for the $4m donation, but I also think the way that the markets are at the moment, there is more risk-off than risk-on.

My guess is that no one was willing to invest into CHM or at least it was not substantial enough to warrant the whole raise.

2) They could have considered receiving the $4m and then waiting a few weeks to raise. At this point, the offer to new investors would have been worse but the dilution would be better.

If I was looking for money, I would go with #1. Put as much incentive on the table as possible so that people actually give some money to the company. If the SP runs to $0.08-0.1, and you do a raise, fewer people would pay up.

I mean this is disappointing, but the way it looks, CHM needs to be able to raise some money here or lights are going out. And I think this is as desperate as CHM has signalled thus far. They are just hoping for some bit of support to keep things going and the people they're going to are their supporters and they are putting the best offer they possibly could on the table. This is the ultimate high-risk/high-reward play but now with $4m put on the table to help "de-risk" things a little bit.