Rights Issue, page-3

'significant dilution'

Technically, yes. But your hit has already been taken with the reduction on the SP from ~3c to ~1c.

To be doubling your shareholding at this, probably terminal, stage of the company where they have clearly stated that the funds are for working capital for the next year in order to remain a going entity, is a big call. But each to their own.

'I believe that this unusual issue has been devised to raise capital but also to allow some to pick up a lot of shares on the cheap (knowing that plans are in place that will cause to correct itself, even rise).'

I guess this allows for confirmation bias to justify the purchase? To suggest the directors have something up their sleeve and are manipulating the SP down is to suggest criminal activity. The words clutching and straws come to mind.