RE:Possible Dilution ?If you check note 7 in the annual report page 71you will find the explanation for the ~37 million shares mentioned. They were part of the exchangeable notes issued in a previous year (2016).
Weighted Average Shares Outstanding Year Ended December 31, 2018 2017 2016 Weighted Average number of common and exchangeable shares outstanding 390,930,453 396,683,593 320,851,538 Shares issuable pursuant to stock options 4,207,542 — — Shares assumed to be purchased from proceeds of stock options (3,832,516) — — Shares issuable on conversion of Convertible Notes 35,814,393 — — Weighted average number of diluted common and exchange shares outstanding 427,119,872 396,683,593 320,851,538 For the year ended December 31, 2018, 5,354,545 options, on a weighted average basis, (2017 - 9,681,304 options; 2016 - 10,662,034 options) were excluded from the diluted loss per share calculation as the options were anti-dilutive.
These convertible notes bear interest at 5% The initial conversion price is US$3.21. That means that they pay into GTE's treasury US$1.20 more than the present price.
We as shareholders come out way ahead on this transaction, share buyback.
I hope that adequately answers your concern.
B&D