Capital Raising immnent, page-91

Cafa.... I do not want to debate in this forum because it will waste my time and energy. However, let me explain to you in details (only this time).

If existing shareholders subscribe the right issue, there will be no dilution. If you do not understand this issue, let me teach you.

Simple illustration: total shares outstanding = 100. You owns 70% of total shares outstanding (70% x 100 = 70 shares) The company offers right issue with the following ratio 5 for 10. Total new shares to be issued under right issue = 100/10 x 5 = 50 shares. Total shares outstanding after right issue = 100 + 50 = 150. You subscribe to right issue and obtain additional new shares = 70/10*5 = 35 shares. Total shares owned by you after right issue = 70 + 35 = 105 shares. Your equity ownership after right issue = 105/150 x 100 = 70%

Gain or loss is in your own hands. This is not investment advice. DYOR.