My Take:

Equity = 175 Million being raised (rights offering) + 332 Million currently (Current Stock price * 100 Million Shares) = 507 Million Equity  (Can do this showing Enteprise Value and reduced debt also)

507 Million / 240 Million Shares =  $2.11 per share post rights trading

Working it Backwards to calculate cost of right:

Cost of Right + (1.25 * 1.388) = 2.11 * 1.388

Cost (Value) of Right is $1.19

Cross Check: If I did not hold any stock or rights and went to the market to buy the rights so I could buy the shares I would spend $1.19 for the right then 1.25 * 1.388 to get 1.388 shares at a total cost of 1.19 + 1.74 = 2.93.    2.93/1.388 = $2.11 per share