Ann: Trading Halt, page-184

This reads well to me. RAC goes out to advance plans and raises 5M, and the extra shares dilutes our future profits by around 1%. Bummer! Some companies would be OK leaving Shareholders in the cold. Not RAC

In order to compensate shareholders, we are rewarded with a bonus options at a ratio of 20:1 or 5%. That is 5 times the amount that was raised. Assuming these all get exercised, we, the shareholders are diluting our share value by 5% but also acquiring 5% more. Of course RAC gets $4.50 so you can calculate your own dilution based on existing share price.

What is important however, is RAC has now given ALL shareholders equally the opportunity to buy more shares at $4.50 between now and next year. Assuming around 143M shares, at 20:1, that makes 7.15M bonus shares. RAC should receive steady cash flow over 12 months to the tune of 7.15 * $4.50 = $32M. With this rolling in, I can't see another CR again

And if RAC does not do well, this transaction today will have cost us nothing. Well done RAC