RE: Members17 Oct 2018 15:01
Hi Members, The way I look at dilution is if the company sells shares to raise capital to keep the company running along the same line with out using it to but assets then it has to be classed as diluting shareholders stock value, but with Enq the RI is to be used for the purchase of a asset valued more than what they have paid for it (The same percentage difference as the RI and the ex rights share value say 40% more) and that asset value must be added to the overall company value, so in my view that cannot be classed as dilution ! It should actually add value to each share.