forecast for fy13 year-end, page-18

Hi parrallax:

Thanks for your question. Gee, I had not even noticed that before. Basically, it gives LCM the right to increase shares by 25% (15% normally allowed within ASIC rules and this additional 10%) within one year.

These shares would be used in acquisitions, such as the recent NZ purchase. If the purchase price is accretive (acquired firm has better P/E and other metrics than LCM at the time), the shares issued would not dilute LCM. Instead, they would increase the company's value eventually.

That said, it's always good to be wary about share dilution. Executive stock options, acquisitions that aren't accretive, etc do occur.