RE: Share dilution before the rise?8 Jun 2020 08:38
It can have impact if the W2T shareholders start to sell the new PHE shares in the market as they might be getting higher profit.
I suppose W2T is not publicly traded company - if it is, rest of my theory should be ignored. I did not find their share price.
The number of shareholders W2T should be few and they should have large stakes, no PIs. Having said this, merger with PHE will give them opportunity to trade in open market and they might sell a few.
If no one sells, the MCAP of PHE will suddenly be 40% higher...! So this merger will be not very different to typical dilution, but in this case we know the new stakeholders.
GLA.