Ann: Client Outlook Acquisition and Capital Raise Presentation, page-27

If a holder chooses not to participate in capital raisings, they will be diluted. That is only fair.

This is the capital markets or equity markets.

A company has two sources to tap for money. Either debt markets by taking out a loan or equity markets by asking current and new shareholders for capital.

And usually there are two reasons they ask for money. You have to try to ascertain the return on that money.

i. to continue being operational or solvent (bad but it is done to ensure things don't get worse)
ii. to continue expansion of their growth, hopefully at a much quicker rate than you could otherwise grow your money

if you expect Mach 7 Technologies to be able to grow your $1 into $1.20 by next year, and your alternative is putting that $1 into a high-interest savings account to get $1.02 by next year, then the logical conclusion is to participate.

However, if you expect Mach 7 Technologies to return you only $0.80 next year, for your $1 today, then the logical conclusion is to not participate.