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2,468 Posts.
1
29/06/17
11:00
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To be fair it doesnt work like that.
Yes they get diluted but the debt levels of the company drop significantly.
For argument sake lets say its 50mil market cap (current) with 950mil debt. = 1bil
and they do a 95% dilution so it ends up being
1bil equity and $0 debt (for arguments sake) = 1bil.
Company capitalisation with debt and equity remains relatively unchanged.
Yes they get diluted 95% but the price of the shares wont stay at 9c i guarantee you that.
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