Personally, I'll be taking up the rights issue because it only...

Personally, I'll be taking up the rights issue because it only means a few hundred bucks to me. I only hold 5555 shares which I bought for a quick $1000 punt at 18c. For those with significantly more invested I can understand that throwing more money at it would be a tough decision.

I've kicked myself more times in past for NOT taking up rights issues than for throwing in the required funds.
My gut feeling is that you'll probably end up getting more of your money back if you participate in the rights issue. Best of luck with whatever you decide to do.