help needed - what is going on here?

this company just annnounced capital raising

it has 90M shares on issue...it will offer another 90M shares with 2 attaching options (180M options)

in other words, to raise $8M when it only needs $4M, it will dilute its share capital by 300%

20% of the shareholders bought in at the float on listing or on-market

80% of the shareholders hold some form of seed capital

seed shareholders if they take up their rights will merely dilute their shareholders...further they must pay money to do so, by buying shares (and exercising options)

seed shareholders will hold shareholdings at a lower price than those who bought with float or on market

however, no one gains an advantage

seed shareholders must buy shares and non-seed shareholders lose great value....