Limited stock dilution for a specific purpose can be advantageous to exsting shareholders in the long run - if the result is to increase the vallue of the company in greater proportion that than the stock dilution.
It's not easy for me to see how a capital raising through new stock issue for this company, now, will do that. The company does not need additional reserves at this point, based on announced plans.
On the other hand, it will depend on how the deal is structured. On balance, I don't see how this helps share value at this time.
MBP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
