RE: Funding imminent...2 May 2024 08:17
You're wrong Quady,
if the shares are £1 each and there are 1 million shares and you own 100,000 shares you own 10%
If you create 1 million shares of £1 each you may well have 2 million £1 shares in issue and the company may well be worth 2 million pounds but unless they gave you 100,000 shares you would still have 100,000 shares which is now 5% of the shares in issue. You have been diluted by 50% by volume,your OWNERSHIP of the company has halved even though your £100k is still worth £100k if the share price stays at £1 a share.
The company hasn't been diluted because it's theoretically worth twice as much because of the share issue but you own half as much by % so you as a shareholder have been diluted.
There is a difference, if you had a controlling share, say 40% before the share issue, you wouldn't any more.