It supports the company by providing it capital to continue...

  1. 328 Posts.
    lightbulb Created with Sketch. 38
    It supports the company by providing it capital to continue operations. This is obvious and does not really even warrant an answer.

    It dilutes the shareholders, which are not the company.

    A capital raise always benefits the company balance sheet.

    In fact, I'd way prefer dilution via a capital raise issued to retail shareholders compared to the wanton issuing of shares via perfromance rights etc.
    Last edited by kwerk: 26/11/21
 
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