What if I shorted a stock and later they announce paid capital increase?

So my question is lets say I shorted 100 stocks with the price of 3.3$ and company announced paid capital increase which made stock price 1.75$ but gave shareholders credits to buy 100 for 1.48$. My question is in this case do i benefit paid capital increases when i short sell (because stock price is clearly dropped) or do i not benefit from short sell (because company stocks are increased by %100 and now i have to buy twice the stocks i shorted).
I hope my question was clear (to me it still is not :s). Thank you for your answers!