If you held shares on the record date you are Entitled to buy 1 Convertible Note for each share you held at the record date. The company will send you a form with this number already calculated for you.
You can buy all, some, or none of your Entitlement. Section 5.9 of the Prospectus explains your choices.
Because the Company is raising more money (effectively at 12c) there is some dilution of the value per share - hence the recent price fall. The loss in value to old shareholders is cancelled out if they buy into the new cash raising. But that is the choice each shareholder has to make based upon their individual circumstances (available cash, portfolio exposure, etc).
Entitlement issue are the fairest way to raise capital. All shareholders can participate equally.
NMG Price at posting:
6.7¢ Sentiment: Hold Disclosure: Not Held
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