PLS 5.69% $3.16 pilbara minerals limited

Ann: Equity Raising Launched to Acquire Altura Lithium Project, page-131

  1. 689 Posts.
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    Confused about the treads regarding dilution.
    If i own 1 share in a company that is worth $100K (and i paid $100k) my one share is worth $100k.
    If I have a friend who also owns a company with 1 share that is also worth $100k and i buy him out, i now own 2 shares in a company worth $200K. Share dilution, yes twice as many shares. What is each share worth, well $100k. But what if I bought my friends company for $50K (even though it was worth $100k) because he needed the cash? Well i have 2 shares in a company worth $200K but only paid $150K. My shares are worth more than I paid, Share dilution - yes. Value of the shares will go down? Where's the logic?
 
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