There is a repeated refrain that raising capital results in...

There is a repeated refrain that raising capital results in dilution. This is a simplistic statement designed to concern investors and to create the impression that there is something wrong with the management of a company. But what is really happening?

To Raise or Not to Raise
When a company raises money from its owners, it does so to pursue the objectives established by its Board (which itself is elected by those same owners).

If a company has objectives and fails to pursue them through derelict treasury management, then investors should be concerned. Sitting on its hands and doing nothing is fine, until the company trades insolvent. Then investors will really be punished (along with directors).

Dilution? It's Completely Avoidable
Posters criticising LPD for raising funds necessary to pursue its objectives cite stock dilution as a major concern (the avoidance of which, and the resultant bankruptcy being in some way preferable).

Dilution to investors' holdings only occurs when they do nothing. Investors are the company's funders at this point. Investors know that objectives will not be achieved without the requisite capital from themselves. So, investors can contribute funding to LPD through participation in the CR, avoiding any dilution and enabling the company to pursue its objectives.

When is Bankruptcy Preferable?
Bankruptcy is preferable when a raider has its eyes on assets of a company, which it seeks to acquire at liquidation prices.

Interests doing the bidding of raiders (whether they be corporations or state actors) may flood information spaces with warnings and tales of gloom to bias investors from making informed decisions in the best interests of their company.

DYOR. With even some general research, the vail of villainy can be lifted (better still, is to tap into well-connected resources).