RC1 5.88% 1.6¢ redcastle resources limited

Dilution issues if new listing

  1. 6,090 Posts.
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    HI, like to start a thread to prepare for any pitfalls for dilution if new listing

    would be good to get organised, SHolders to know what is up, and to know how to present as a unity, aka United Shareholders of TTL

    for example, we would be extremely lucky to get a 1:5 or even 1:10 dilution, let's say you now own 1m shares of 173m MC shares, you have 1/173 = about .57 percent of the MC.

    if the MC was $1m your shares are now worth $5,700. but you night have paid double or triple
    -------

    Now let's do an example here:

    new total shares 100m total shares

    old TTL 173m shares split at 1:17* = 10m shares * I made this up for simplification to get 10m shares, let's hope it is 1:5 or so

    >> CR shares 30m shares at 20c to raise 6m new capital, >>made this up as well, is like a round number

    Vendor Shares 60m shares at 20c to pay the vendor 12m for the value of the new company , ie assets, good will etc >> seems a bit high , depends on coy

    Total 100m shares

    Listing price 20c / new MC $20m

    if you had 1m shares before split and re-structure, you now have 1,000,000 / 17 = 58,000 shares

    if the company lists at 20c your value of cash in those shares is $11,600

    Compare to how much did you pay for them ?

    Now the above was just an example, when the vote comes, you we need to

    -first understand the calculations and
    -second unite as one voice if we need to offer to be made better for us,


    Can someone come up with an idea where we can start a private thread and discussion group please
    -----

    keep in mind this thread is not to put rocks in the pathway of re-listing but to preserve our rights and not get over-diluted.

    also keep in mind one or two of the directors have skin in the game, and hopefully will preserve value and make sure that over-dilution won't happen

    GLTA
 
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