quakes99 wrote: Hi everyone. As I pointed out a while back, with CGN coming to Fission with a massive show of support to the tune of $82.3M at $0.85/share, a 30% premium to the current share price, it actually creates a very rare and almost unheard of situation I call "reverse dilution". The large premium paid by CGN results in a significant cash increase to the Fission treasury that actually RAISES the Net Asset Value per share rather than reduce it, which is what happens in every other Private Placement financing where shares are bought under subscription for much less than the trading share price.
I put together a spreadsheet showing that, if we take into account Options are are "in the money" then if this deal closes at $0.66 then the result from the $82M injection is that the actual Net Asset Value for existing shares rises by $0.04 to $.70. You end up with a higher cash value per share than you would have without the CGN investment. Crazy!
While the shareholders on other bullboards are whining and complaining about dilution from the last or next financing... we actually see the value of our shares go UP, instead of down. Whether or not the market will recognize that and adjust the share price is of course an unknown, but at least you know that each share you hold has a higher cash value.
Here's the spreadsheet:
| | Share Count | Price | $ Value | |
| Outstanding shares | 387,188,121 | $0.66 | $255,544,160 | Market Cap |
| CGN subscription | 96,736,540 | $0.85 | $82,226,059 | Cash |
| Options in the money (31 Dec 2017) | 836,667 | $0.25 | $209,585 | Cash |
| Options in the money (12 Jan 2017) | 536,666 | $0.39 | $207,260 | Cash |
| Options in the money (1 Jun 2016) | 8,215,000 | $0.68 | $5,602,630 | Cash |
| Totals (Fully Diluted In-The-Money) | 493,512,994 | | $343,789,694 | Total Market Value |
| | | | | |
| Total FDIM | 493,512,994 | | | |
| Value FDIM | $343,789,694 | | | |
| Total Value/Share FDIM | $0.70 | | | |
I included the Options at $0.68 as it is looking likely they will be in the money by June 1st of this year.
However, that's not the complete story. The actual balance point in the Fission share price that completely compensates for the new Market Cap that Fission will get, when it's share count increases by 19.9%, is at $0.82/share. Here's the spreadsheet showing the point where the old share price and new share price would remain the same after closing the deal, receiving all the cash and issuing the new 96.7M shares.
| | Count | Price | $Value | |
| Outstanding shares | 387,188,121 | $0.82 | $317,494,259 | Market Cap |
| CGN subscription | 96,736,540 | $0.85 | $82,226,059 | Cash |
| Options in the money | 836,667 | $0.25 | $209,585 | Cash |
| Options in the money | 536,666 | $0.39 | $207,260 | Cash |
| Options in the money | 8,215,000 | $0.68 | $5,602,630 | Cash |
| Totals (FDIM) | 493,512,994 | | $405,739,794 | Total Market Value |
| | | | | |
| Total FDIM Share Count | 493,512,994 | | | |
| Value FDIM Market Value | $405,739,794 | | | |
| Total Market Value/Share FDIM | $0.82 | | | |
Would be nice if the market recognized that Market Cap rebalancing created by the CGN investment and quickly pushed up the share price to $0.82. The market had already moved the share price up there before this latest retracement, reaching that balance point... so we could see that happen quickly again... but I'm not holding my breath.
Can't wait for this deal to close... bring it on!
Cheers and good luck.