Mr VXR, Bill Beament, page-313

That is basically it.

If the value of VXR before the offer was $X and there were A shares outstanding, then the value of those shares were $X/A each.

If the entitlement adds $Y in cash due to those taking up the offer, and the number of shares issued under the offer is B (assuming all options will be converted), then the new price per share should be: ($X + $Y) / (A + B).

However, that is very theoretical, and assumes the pre-offer valuation of VXR at $X is an accurate reflection on the true value of VXR.

Clearly in the case of VXR that has wild jumps of sometimes 10% plus or minus on no new news, no one can put an accurate value on the company. Any estimate has to make huge assumptions on commodity prices, new discoveries, management capability, political climate etc.

For a more established company where a lot of the parameters that allow analysts to put a value on the company are known within a small range, the dilutive effect would be somewhat like I outlined above.

So even though we were expecting some drop in price due to dilution, calculating what the new correct price should be is a pointless exercise, as many of the other factors effecting price fluctuate more than the amount that would be calculated by the above formula.

To address your other question, it doesn't matter that the shares are not yet issued. We know exactly how many shares and options are in the offer and an almost 100% take up is assured, so for all practical purposes, that added to those currently outstanding will be the amount of shares outstanding going forward.