That is pretty much the way I see it as well.
Effectively, management is saying "we think .30 is a great price to buy at, and if you don't, we will".
The way this is structured is reasonably shareholder friendly. Existing shareholders get to participate in the offering. Additionally, it eliminates much of the incentive to short the stock in advance of the offering as any such short would be liable for the right. A short could still make money but it is tougher. Simplifying the math, if you shorted at .50 today, you would make money only if you drive the price below .40, and it seems unlikely it would stay there long if it got there as management is saying "we will buy all we can at .30".
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