If the share price holds at 21.5c, or (perish the thought!) goes...

If the share price holds at 21.5c, or (perish the thought!) goes up to 22c, I'll probably compromise: sell half my holdings, and use the funds to take up my entitlement. It means that my percentage holding in the company will go down, but my financial exposure will stay the same. At 21c, I'm losing a little on brokerage in the process, so I'd prefer to not sell at that mark.

I'm still not comfortable with just taking up the offer; there's too little information given the company's track record, and too much uncertainty as a result. But I'm also aware of the potential for the company to fold if it doesn't get the funds it needs, even if it does win the business. So... if all goes well, I compromise. (And I'm probably not the only one thinking along these lines, so I'll be very surprised if the price hits 22c before the offer closes. Sustaining that level is very unlikely.)