No dilution?15 Oct 2018 21:55
Simple logic dictates (to me!) that there's an excellent chance there will be a no-dilution scenario for the extra funds needed.
Chris Fraser is 44 years old and has 123 million shares, current worth £31m or so. Russell S has £1m worth and Thomas S has £260k
I'm assuming that there will be no way CF will want to be at the helm until retirement age. In fact, I'd imagine, like the vast majority of the human race, he'd be delighted to retire early with a phenomenal nest egg to last him the rest of his life in unimaginable luxury. It will matter not a jot to him down the line whether or not the company has to give up 5% or 15%. As long as it's a viable business with hefty profits, he could exit with his head held very high and his pockets very full. The only difference to his retirement fund will be the share price.
So my leap of faith says he (plus RS & TS) will be significantly more inclined to keep the shareholding status quo as is and will hopefully get into bed with someone offering, for example, $100m per 1% royalty, up to 6% for $600m than accept any more dilution. Hopefully with some caveats that the final 3 x 1% would only be applicable once almost all the contingency is spent.
I've been wrong many, many times in my rollercoaster 7 years here. But maybe, just maybe, it's time for the thrilling part of the thrillride to begin.