RE: Think the Same7 May 2020 13:50
I'd be interested to see your maths on this -> "Providing each fund raise is done at a premium to last, we all make money here"
let's say sp is 9p and there are 12 million shares in issue. (market cap 1,080,000)
they raise (for simplicity) £1 million at 10p (dilution of an extra 10 million shares)
even if the sp rises to 10p you have been diluted by 83%
then they issue shares to raise £1 million at 11p (dilution by another 9 million shares)
even if sp raises to 11p you have been diluted by a further 40%
so your original investment of (say)£10,000 at 9p (111,111 shares) is in theory worth £12,222 BUT the market cap is now £3,410,000) with no increase in assets!
this is your mistake. look at the history, they have had to have repeat consolidations as sp does not stay above placing price.
in this scenario the real position is you end up holding an increasingly reduced share of a reducing market cap.