elroy4 Sep 2010 15:32
the shares instantly become worth 23p even though they paid more for them. What we have to hope is that the market cap increases proportional to the new amount of shares in issue. In the end all we are bothered about is the SP.
The issuing of shares to russina holders was not dilution as such because we had an increase in assets, which should have given a corresponding increase in market cap.
ENK actually got a bargain for rusina, we issued a fixed amount of shares, rather than a value amount of shares, if i recal correctly there was a share price cap of 14p in place because ENK fully expected the SP to be around this figure with the russian finance coming through. In reality the finance package collapsed and we had the forestry permit revoked and the shares at the time were around 6p.
Rusina holders got shafted as RooPoo will tell you.
In the end i guess the issuing of shares is dilution, but if the issuing increases the market cap correspondingly then we should have nothing to complain about. In the end all we want is the SP to increase, if they use the money correctly that should happen in multiples of 23p soon.