RE:An explanation of how dilution works How do you figure that there won't be 960 million ACB shares outstanding after the arrangement? Just because the effect on shareholder equity should include LEAF's assets in the calculation at ACB's fully diluted i/o after the arrangement, doesn't mean they won't have 960 million oustanding shares... ? Unless I'm missing something, there's no adjustment to the exchange ratio in this deal.
Not that I think that it's necessarily an issue. Dilution is only a problem if there's no corresponding value increase (or potential for it).