FAR 0.99% 50.0¢ far limited

Ann: Trading Halt, page-65

  1. 498 Posts.
    I posted this a few years back when everyone's sense of dilution was very backward on this forum; you need to understand the Theoretical Diluted price equation to make such a call. Calculations based on what we are hearing not fact here!!!
    Theoretical Diluted Price = ((O x OP) +(N x IP)) / (O + N)
    where O = original number of shares
    OP = Current share price
    N = number of new shares to be issued
    IP = issue price of new shares
    So taking this into account here you go for FAR
    TDP =((2,703,703,703*.135)+(272,727,272*.11))/(2,703,703,703+272,727,272)
    and you get .1327 which is where the share price needs to be to have no dilution, so at today's share price of .135, there is theoretically NO dilution. The question remains will it go higher with further announcements or stay stagnant around the new CR .11. A few to many unknowns to see how this will pan out, however as long as further good news is pending I don't see any issues here, blue sky IMO.
 
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