rights issue effect on sp

Have been pondering how this may play out.

Rights issues can depress the stock price when the announcement is made and then once the price is confirmed and the money is in the bank the stock can get back on with business. Remember Macquarie et al during 2009? It issued at around $18 and then it ran to high $30s, beacause the risk was not around dilution but more around having the right amount of money to guarantee existence.

So the question is really at what price, and to who, etc? If they filled all of it at say 35c quickly then we would get on with business.
They wouldnt necessarily have to offer it at a discount to current traded if it was targeted at select investors as it is so thin that they couldn?t get a big chunk at that price easily anyway

If it is a long drawn out rights issues to all existing holders at a lower price than current traded then you could expect the stock would to go down to the rights issue price, and lower if people thought they would not get it.

Worst case is clesrly if they don?t get the wedge.

Another puzzling thought, - why are Novo not involved at all? If they really love this drug and CBZ only need $10M, - well that is small change to Novo.

I just don?t think this drug will be shelved. That?s what is keeping me in. All the management f-ups and real world operations issues involved in getting this drug through all the hoops will mean the blue sky prices ($3, $5) are much less likely but it is clearly worth more than what it it is trading at now.
And the directors still all have those one buck performance rights.