RIGHTS ISSUES The following is an extract from a letter sent on 22 February 2017 by Oz Outback Ltd to its shareholders in relation to a rights issue by the company. Required A client who holds shares in Oz Outback Ltd has approached you in relation to this letter. She requires you to explain the nature of a renounceable rights issue and who will receive shares in Oz Outback Ltd under the proposed rights issue. Write a report to your client providing the requested advice. CASE STUDY