HLD Land Development Limited Partnership Units V.HLD.UN

An Example

[HLDpropmngr]

Its very simple. We need to raise more money. If Partners are the ones buying new units, they can maintain their current percentage interest. If someone else buys the units, it creates 'dilution'. To use round numbers as an example, if someone owns 100 of every 10,000 shares issued, they own 1%. If another 10,000 shares are issued, they need to purchase 1% of them if they want to continue holding 1% overall, otherwise they will be 'diluted' to owning .5%. Sometimes it also makes sense to average down. If someone originally bought shares at $2 each, and can now buy 4 more for another $2, they now have 5 shares for every $4 invested, so their average cost is 80 cents per share. They can then be profitable selling shares at $1, instead of losing 50% of their original $2 investment. Michael