Demand, page-33

The dilution is in relation to the percentage of the company that you held prior to the capital raise vs the percentage owned after the capital raise. Assuming you do not participate in the capital raise the doubling of shares on offer would see your percentage of the company owned being halved.

At such a low MC it is hard to put a $ value on dilution outside of your percentage owned. One announcement alone could see the MC triple, such is the nature and risk of speculative stocks. High risk and high reward.

Dilution also has an impact on EPS and eventual dividend returns.

At this stage there is no option but to raise capital via equity. Hopefully with the options on issue and now greater inventory, better profit margins and bigger demand, the requirement to raise capital will slow from every quarter to half yearly or less. We should also be looking at debt as a finance option as we get closer to breakeven, and I do like the idea of an escrow agent getting involved for any future CNs or equity raises.

This is not a gravy train, management have a responsibility to investors, not brokers and not traders. I am sure Novus capital interests extend to the success of the companies they work for and not just to their own profitability.

@austrader, the company needs to be careful with a share consolidation when there is no volume as 9/10 the share price will fall back to the post consolidation price.