arafura demerger to nupower soon

The DEMERGER process well under way, and Arafura Resources want to raise $9 million for this new company by issuing rights to existing shareholders. Read the announcements etc. This has a twofold effect on a holder, my guess is the following

1. Entitlerment will probably be 2 rights for every 5 shares fpo held
2. Arafura keeping 10%, say 30 million rights to new shares gives Arafura 3 million
3. To raise $9 million the issue price of the 27mil rights will then be in the range of 33c to 34c, and under current sp
4. Remember, for each right you purchase you will receive an entitlement to NUPOWER in-speccie free
5. End result depends largely on the allocation of in-speccie shares and options to shareholders

Pirra96 believes that at the end of the day the result for existing shareholders will be brilliant, except for the DILUTION effect to major shareholders. Unfortunately, thats business and to maintain % of holdings one needs to take up their full allocation. In my case will exceed $100k, not chicken feed either, but have made bank arrangements to cover my needs.

Any comments on the above would be appreciated. Remember, Pirra96 does not have any idea as to what will happen with the rights issue and demerger process and the above is my speculative guess on the matter.

Time will tell. Always does