RE: UK OIL GAS PLC - OPEN OFFER15 Jul 2021 15:56
Yes, Eddie.
It is dilution.
Dilution is where you have a pie and make four slices of it, to feed yourself and three visitors to your house.
Each of four people gets one quarter of your one pie.
But then, before you all have a chance to wolf it down, four more people arrive.
Now there are eight people.
You have to cut each of those four slices in half again to feed everyone.
That reduces the amount of pie each person gets from one quarter to one eighth.
The value of the whole pie is the same, but now the value of each slice is 1/8 of the pie.
The value of each slice has been diluted from 1/4 to 1/8.