Ex entitlement to attached options, page-123

If you value the SMN option at say 60 cents, which is currently about 30 cents out of the money, it would seem reasonably priced. In other words a $1.20 strike price with the market about 90 cents.

On the basis of a 60 cent valuation for the option which takes two rights to obtain, in theory, this makes the current value of a right 90 cents plus (60 cents divided by two) 30 cents which equals $1.20. Consequently, I cannot understand the stupidity of some shareholders not taking up their rights, provided they have the funds to do so.

Does anyone disagree with the above estimation of valuations.