"The major shareholders like JP Morgan are not about to let an...

"The major shareholders like JP Morgan are not about to let an 80% dilution go ahead at 23.5c. That is dreaming."

Well yeah, but those "sophisticates" have it in their power to make sure they get a lot of the huge placement. So their cost position will be enhanced, not degraded. A placement to bigshots will include JP Morgan so they will not be affected by the dilution.

A rights issue targeted to all shareholders may be inconvenient to pay up for, but it isn't dilutionary. It is a selective placement to privileged investors which is dilutionary.