First American Scientific Corp. (fka FASC)

[Fasctrack]

I like the rights offering concept...company raises money without underwriting and marketing fees, existing shareholders get the right to buy additional shares at a discount. Perhaps existing shareholders get 1 right for each share owned.

Not sure if this would work with FASC due to the severly depressed pps. If the rights were priced at $1.00, I would think that the stock would have to be trading at around $2.00 to make it work. I don't know all of the mechanics, but I assume that the company gets the money directly and issues the shares when the rights are exercised. I assume that the company would want some assurrances that they will be able to raise enough cash to make it worth while doing the offering and may end up hedging with an underwriter.

I am going to try to go get edumacated on the topic.