"So I cough up a hundred grand, is that right?" correct , but you don't have to take up all of it. " And if I don't cough up the money, I just get diluted. Right? '' correct , but you may receive money for your rights , ie when they auction those shares that you didn't take up , they may go at 6c , so you get a check for 1c per share. ''If I take it up I get an option so I need to cough up more in a couple of years to maintain my stake?'' , yes ,and no , but noone will take up the options if they are not worth more than 10c , so you will be able to take up the options or sell them, if the share price has gone up.
But frankly if things have gone badly enough that the shares haven't gone beyond 10c at options exercise time., the company probably doesnt exist any more'. If it all works out , even the 20c options from the past raising may be in the money.
cheers
RWD Price at posting:
7.0¢ Sentiment: Hold Disclosure: Held
