I haven't looked at the prospectus but will try to answer. Say...

I haven't looked at the prospectus but will try to answer.

Say the company has 100 shares in total and you own 10 currently.

You own 10% of the company.

The company does a capital raise or the like, and raises 50 new shares.

There are now 150 shares, you still own 10 (if you don't participate) so you now own 6.6% of the company.

So you have been diluted.

If you participate and buy 5 more shares, then you will have 15/150 = 10% of all shares, so your equity holding will be the same.

As this seems to be an $800,000 market cap company, Id possibly review very carefully the capital raise and make sure it not to just keep the doors open for a little while.