RushNet Inc (RSHN)

[scaryharrysafari]

They're doing what's known as a "Shareholder Rights Offering"; these aren't as common as they used to be since Private Placements have become more popular, but they seem to be coming back into favour.

An SRO means Existing Shareholders in the Company making the SRO get to purchase Shares at a Discount to market price usually 85% of MP; plus, Shareholders are often given "over-Subscription" rights, meaning they can buy additional Rights other investors don't want, for whatever reason.

SRO's are a great way for a Company to let its existing Shareholders be the Company's Investment Banker instead of the usual Vultures.

Two such SRO's back in 1998/99 saved TransGlobe Energy during its darkest hour, and it's now listed on NYSE, Nasdaq, and the London AIM. I know because I was one of the TGA Shareholders who participated, and I'm still holding some of those share I bought for $.15 ( yes, fifteen cents ) and they're now worth $3.37