Ann: Trading Halt, page-144

Everything has advantages and disadvantages. The way this has been done could minimise fees. It isn't particularly fair to existing shareholders, but in my experience companies have seldom worried about that. Another currently popular method of capital raising is to make a placement to "sophisticated" investors of particular worth and income. In practice these are the favoured clients of a broker, and it is usually offered at a significant discount shortly before some good news is due, like FDA approval for a new product. The pitch is that the clients can sell out soon if they wish as the broker will be ramping the stock around the good news, so they can walk away with a 20% profit if they don't want to hold the shares. And the broker will take a fee and significant trading revenue, as they have had inside knowledge. A small rights issue with a fixed maximum investment is made available to existing share holders. Big shareholders selling into the good news can also cripple the share price appreciation.
The fairest way is to have a pro rata rights issue and any shares not taken up are placed with the underwriter and disposed of over time with placements.