RE:LIDA ....Lida Resources to acquire Continental Potash in RTOTrying to follow this offering transaction and how it benefits current LIDA shareholders.
Didnt LIDA shareholders recently face a recent 20-1 consolidation of shares leaving 2,769,155 shares outstanding from the original 55 million shares outstanding at that time?
After this offering there will be 61 million shares outstanding of which LIDA shareholders will hold 4.48% of the new company. Is that not akin to taking a massive dilution of ownership on the chin twice?
What am I missing here?
"Assuming the offering is fully subscribed (with no exercise of the overallotment option), upon completion of the proposed transaction, there will be 61,769,155 common shares issued and outstanding in the resulting issuer, of which former shareholders of Continental Potash, together with subscribers in the offering, will hold 59 million resulting issuer shares (95.52 per cent) and current shareholders of Lida will hold 2,769,155 resulting issuer shares (4.48 per cent)."