Q: I am a share holder of Elk Water Resources (ELW), now I have some rights that are also in my account. My broker has informed me that for every 4 rights I can buy one new share at $0.1/share. I have never seen this before, is this info correct and it seems to good to be true buying the shares for $0.1/share when they are trading at $0.78/share? Why would a company do this and does it also mean that there is additional dilution coming to all existing shareholders because I assume the additional shares will be issued by the company??
Darcy
Darcy