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Rights offer - am i missing something?

I see the ELI share price is around 85c, but the rights offer offers shares at 110c... why take up the rights offer if i can buy the share cheaper? or am i missing something? [got the share for a while and looking for a decent exit BTW]
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Super Contributor are 100 % correct, so the poor underwriter, I don't know who that is, are going to take up all of it !!
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Occasional Contributor
Can someone please explain this rights offer to me. If I have a rights offer to purchase 2000 ELIN shares at R1.10 but I do not excercise this option..... but I do purchase 50000 ELIN shares at I buying the rights to purchase these shares at R1.10 or not?
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Not applicable
first of all - if you buy the ELIN NPL's at 3c, you will be doing someone a huge favour! The NPL's are worthless in this scenario. A NPL is the right, but not the obligation, to buy more ELI shares at R1,10 a share. But since the share is trading well below the rights offer, you shareholders are all screwed, IMO, just take the 40% dilution on the chin - or, if it were me, I would be offloading now. Makes me wonder what the underwriter was thinking - can't see anyone taking up the rights offer - so Mazi Capital stands to take a 30% stake in the company - added to their existing 17%. Seems a rather expensive way to take control of a company, IMO
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