what a bummer!, page-25

We all just lost 10% of our stock through dilution

Absolute rubbish.
I wish people would do their sums before they write stuff like that.

The actual dilution is 1.3%. Ie. after the issue the equivalent price comes down by less than one cent.


Before issue;
Shares on issue, 175.3 million
Market cap, $125.3 million
Share price; 71.5 cents. (Cap divided by shares on issue)

After issue,
Shares on issue, 201.3 million
Market cap, $142.2 ($125.3 + $16.9 issue)
Share price, 70.6 cents

In other words the dilution is effectively zero, but finace has been raised by a placement, not debt. I see that as very good news.