FTT is an attractive shell due to the cash of $3m. I would...

FTT is an attractive shell due to the cash of $3m. I would forget the carry forward losses as the likelihood of anyone utilising those will be extremely low. The more attractive the acquisition, the higher the chances of being heavily diluted and vice versa IMO.

I was in ACL which became APH. It had a decent cash balance (not as good as FTT's), lower SOI and large carry forward losses. Existing shareholders were diluted when the RTO of APH was completed.

Generally the founder(s)/key stakeholders of the acquisition may continue to have a large stake in the new entity so existing shareholders will be diluted as a result.