You have made a rookie mistake there, you are using the new issued shares to dilute future earnings, but you are not taking into account the additional earning power that will be gained by having the extra capital on the balance sheet.
Yes, any future earnings will be divided by an additional 10% of shares on issue, however this capital raising will be adding $16M of equity to the balance sheet, the last half year report stated an equity figure of about $39m, so the equity will be increasing by about 40%, which should provide significant additional earning power and increase earnings per share by more than the extra 10% of shares dilutes it.
Even if the additional $16m is only used to retire debt, it should save $1.25m in interest this alone would raise the earnings by more than 10% and more than offset the additional shares, if the cash is used in a investment in expansion that has a return of say 15%, the effect would be even greater.
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