RE: Potential 50% dilution16 Jun 2021 16:58
That was my initial reaction when I checked what the current Mcap was but I would hope/assume that the only way the company would get to a point of exercising the full value of the £56m loan notes is if the company were seeing substantial growth. So while it may look like a potential of 50% dilution now, the first 2 or 3 tranches of loan notes could see the company grow 2 or 3 times. By the time the 10th tranche is exercised the company could have grown 10 times the Mcap it is now so the total diltion would only be 5%.
Possibly hopeful thinking but when the share prices drops 12% on this kind of news, hopeful thinking is all we have.