Rave Restaurant announced the commencement of a $5M registered rights offering for shares of its common stock. Shareholders are being distributed one right for each share of common stock owned on August 1. Each right entitles the shareholder to purchase 0.3351393 shares of the company's common stock at a subscription price of $1.40 per share. The rights offering also includes an over-subscription right entitling shareholders who exercise all of their basic subscription rights to purchase additional shares of the common stock not purchased by other rights holders. The rights are currently exercisable and will expire if not exercised by 5:00 p.m., Dallas, Texas time, on September 8. However, the company may extend the period for exercising the rights for up to 30 days in its sole discretion. To exercise rights, shareholders must submit completed subscription documents before the expiration date. Rights that are not exercised by the expiration date will expire and have no value.