Ann: Raises $5.5M for Lulo Diamond Prjt / Propose, page-31

re: Ann: Raises $5.5M for Lulo Diamond Prjt /... arkotiri
there are some companies that are eternally exploring and moving things forward, they survive by asking shareholders for money, they use that money to pay themselves and try to make money. Now some of those will move ahead and becoming revenue generating companies, others will float between negative and cash flow positive for years , ie, they will earn some revenue but spend just as much, and others will spend way more than they earn resulting in massive dilution and wealth destruction. Look at LKO , its survived for 40 years and hasnt found a drop of oil, there is always a project, a prospect and a new venture but in the process they have destroyed multiples of shareholders dollars than the company is worth today. when shares get to many on issue they consolidate and start again with the dilution.
It is the most common reaction to heavy dilution by holders, we need the money to move things forward, the secret is how many times must they raise money and issue shares and options to get to that revenue generating stage, if its too many times, then even if they get there sometimes it will be too late for SH who bought in early. Look at todays ann, you have share dilution, option dilution and then consolidation and more option dilution.

Every dilution, especially as big as this takes away a big chunk of upside in the case of success. you can see its all worth it for the big prize if it doesn't happen so much that the dilution means the big prize will be split between XXXX billion shares and ofcourse in this case its not a case thye have found the big prize and now need to develop it, they are using the funds to maybe find he big prize