say bye to mdo, page-20

Is RMXO exercise at around current share price dilution? I would have thought the net impact was zero i.e. one more share issued but company gets 1.5 cents cash, so from an accounting perspective no dilution. Sure if RMX trading at 3 cents, then dilution for existing shareholders.

There is dilution to YOUR percentage holding of the company if others are exercising more shares and you are not. Yes the company gets more cash (the value in that depends on what they do with the cash ie will the spending increase company value).

To highlight I'll use an extreme example. If I held 100mill shares in a company and the company has 200mill shares then I own 50% of the company. If another 100 million shares are to be exercised and I am NOT involved, then my ownership will reduce to 33%. My ownership has been reduced. That is why there may be larger holders who would benefit from the shares NOT being issued.


Hope that helps.