If they deliver the price will rise
If they dont the share price probably wont rise as much.
Shareholder dilution happens often enough - especially with small rapidly expanding companies who instead of borrowing or issuing options or bonds raise additional capital from shareholders - if they dont buy in or get an offer to buy in of course their shares will be diluted.
KCG had this happen over the last month - a heavily discounted capital raising with ordinary shares issued and henceforth the shares have been the subject of profit taking and their value has dropped back as a lack of buyers (probably waiting further annoucements before putiting cash back in)
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