Well I believe it means that shareholders are allowed to buy more shares at $2.25. For every 12 shares they own you get 1 share at $2.25. The "net effect" should be zero as the profit you make from taking up the rights should in theory be compensated but the decrease in share price to offset the transaction.
However in real life it all comes down to what sentiment is towards the stock. It could be that investors that wanted to sell held out a little longer to get the cheap rights (which would suggest a price fall once they get the rights). Who knows, we'll have to wait and see.
Don't take my word for it, call your broker.
Cheers, Munch.
VCR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
