The thing with Capital Raisings though Orgone, is that without the additional Captial, the company could go broke, or their future may be limited.
In Capral's instance, they had a lot of debt, and they were continuing to lose money with the way the company was being run. If they continued on with business without the additional Captial, they would have gone bust, so your shares would have been worth Zero.
So the company had to make a choice between:
A. Raise additional Capital, in order to ensure the long term future of the company, yet upset shareholders in the short term.
B. Continue on running the business at a loss, until they go bust, which would keep shareholders happy in the short term, but eventually they would fall over.
I think you are looking at it slightly the wrong way, and I don't think you realise just how bad things were financially with Capral. The best way to look at it is, that if there was no capital raising, your shares would have been worth Zero, as the company was going broke. However instead of having shares worth Zero, you now have shares worth about 2.5c.
I know it is difficult to accept, but all you need to do is ask yourself one question.
Q. Would you rather your shares be worth zero or 2.5c?
CAA Price at posting:
37.0¢ Sentiment: None Disclosure: Held
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