ua new issue at 3 cents, page-9

Hi Tibbs,

"So what is the main difference between the two then?
SPP - Rewards all holders equally
Rights issue - Rewards larger holders more. As they have more shares, the pro-rata issue means they receive more rights."

Personally, I see the difference the other way around to what you have stated.
Everybody gets the same amount of shares in a SPP if full $ value taken up, therefore the smaller s/holders get a better deal because their % of stock held to total issue increases more than larger holders.

For a rights issue, everybody gets an equal % of what they already hold, so if the RI is taken up in full by all, then the % held by individuals is unchanged against total issue.

Both of these % views are in relation to dilution, which most s/holders on HC seem to worry about the most, especially in relation to large RI's.