Asturias56, exactly. Companies would only usually raise cash by way of a rights issue if they were unable to raise funds by other means - or as you say running into problems. The explination of a rights issue are pretty simple to understand, anyone with google could figure it out, the issue I see here is that there are no other options for NAS. This is their last option available to keep the business a going concern over the next few months. Hopefully, for the employees, shareholders and all other parties involved, it works.