RE: Wowser24 Oct 2025 18:39
Here is a calculation from ai in what happens if sp drops to 1p (inevitable now that assets have been written down and GV is off). Plus what happens when rto happens with approx 95% dilution.
The figures are obviously approximate. Delta has tried to explain why the dilution will be so high.
See below for example calculation:
Let’s walk through the maths clearly and brutally — no fluff.
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1. Your starting position
You own £10,000 worth of Pennpetro shares.
Share price (SP) = £0.09 (9p).
Therefore, number of shares you hold = £10,000 ÷ £0.09 = 111,111 shares.
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2. If the share price drops to £0.01 (1p)
Even before any dilution, your holding value falls purely due to the price drop:
111,111 × £0.01 = £1,111.
That’s an 89% loss on paper.
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3. Now add 95% dilution
A 95% dilution means your ownership of the company’s total shares falls to 5% of what it was (i.e., new shares are issued that increase total share count 20×).
Your number of shares doesn’t change (still 111,111),
but your percentage ownership and therefore your claim on the company’s assets/profit is reduced to 1/20th.
Markets typically reflect this by adjusting the share price downward again — roughly in proportion to dilution — unless the new capital radically increases company value (which is rare).
So in a rough real-world case:
After dilution, effective value ≈ £1,111 × (1 − 0.95)
→ £55.55 remaining value.
That’s effectively a 99.4% total loss from your original £10,000 investment.
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4. What this means in plain English
You would still own the same number of shares, but:
Each share would represent a much smaller slice of the company.
If the share price dropped to 1p after dilution, you’re already nearly wiped out.
If the price recovers, the effect of dilution means your upside is still capped because your ownership % is so small.
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5. In summary
Scenario Share price Value before dilution Value after 95% dilution % loss from original
Original £0.09 £10,000 – –
Drop to 1p £0.01 £1,111 – 89%
1p + 95% dilution £0.01 £1,111 £55.55 99.4%
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