it's pretty simple math alright...a company got 5B shares, market cap is $50m, so the current share price is 1 cent. Suddenly the company got some really good idea, the market cap estimated as $500m, but before making money, they need capital rise to kick it off, so another 5B shares diluted in..what's the share price? I reckon it will be 5c. the SP and company market cap always are in front of the true company value, the market always trade for the future or the predict company value. There are thousands of companies got billions issued shares in the world, keep diluting every year like BHP, all depends on what they do.
IXR Price at posting:
1.0¢ Sentiment: None Disclosure: Held
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