Real investors need to now evaluate the company instead of the stock price.
I remember awhile back people ignored EABL coz the rights issue was higher than the market price, thats when Diageo swooped in and took up majority control, now they are laughing all the way to the bank.
Me thinks one is better off buying the rights or selling off any holdings just to protect one's value because they will be diluted by the rights issue.
The directors are not issuing the rights for capital only, they are doing it so they can improve their gearing which will allow them to borrow the Sh 330B they need for their expansion
"The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins