Windstream Holdings Inc. (fka WINMQ)

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A rights offering typically provides an issuer’s existing shareholders the opportunity to purchase a pro rata. portion of additional shares (also referred to as “subscription warrants”) of the issuer’s stock at a specific price per share (the “subscription price”), which is typically set at a discount to the recent trading price of the issuer’s stock.
What is rights offering for stock?

Can existing shareholders exercise their rights to buy shares ?

If the shares are trading in the market for the same or less than the subscription price, then shareholders will not exercise their rights. The issuer has to consider where to setsit subscription price to avoid this, while not selling the shares at too steep of a discount price.