Let's look at the dilution factor......Current outstanding shares of EQT is 78 million!
Current outstanding warrants and options is 38 million!
With this proposed acquisition, EQT must raise $2.5 million by way of a another private placement. I have heard that the projected issue price will be $0.07/share. That would add 36 million shares to the outstanding base. And we know that EQT likes to give out a full warrant for every private placement share.....meaning another 36 million warrants.
Outstanding share base is now at 114 million.
Fully diluted, they are now at 188 million.
But here's the real kicker.....
- Equitas will acquire 100 per cent of the issued and outstanding shares of Alta Floresta Gold from its securityholders in exchange for that number of Equitas shares that is equal to 100 per cent of the issued and outstanding Equitas shares at closing.
This press release statement could use some futher clarification.....but we know that Alta Floresta Gold shareholders will own 50% of EQT upon closing of this aquisition. And seeing as how the $2.5 million placement must proceed the closing.......I can't help but believe that Alta Floresta Gold shareholders will receive approx 114 million shares for this acquisition.
Uping the grand totals to 228 million shares outstanding.......and 302 million fully diluted!!
I welcome any and all clarification and correction for any errors I may have presented here.