Is it realistic that we can expect 100% dilution over next 5 years? using compounding 15% shares on offer through raises year on year for the next 5 years? ...a reasonable assumption given that we will be making a rapid global expansion.
In return it's a conservative and reasonable expectation that by scaling of the company, and thus increases in share price along the way, we will see an average value with compounding and doubling of share price each year, that in year 5 we will be raising capital at around $1.20 per share. A 15% equity raise that year equates to approx 720M shares or $863m. a conservative estimation that the company's value at that time = ~$6.4B.
I'm not 100% sure if I got that correct as I did the maths in my head, definitely worth running through a spreadsheet.
FBR Price at posting:
3.8¢ Sentiment: Buy Disclosure: Held
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