RE:RE:****LOADING UP****Bella2017 - (2/6/2017 3:27:22 PM) RE:****LOADING UP**** Numbers99, I'm new at this ..could you explain dilution? Is that something that will happen after the bought deal? Will shares split? Other than that I want to load up more :)
Bella to answer your question for Numbers99. All Purchase Plans and Bought Deals comes with Dilution to the share value because of the increase to Out Standing shares. So say we have a Float (O/S) of 134 million and the BD is an increase of 10 million when the BD is completed we will then have an O/S of 144 million. So now with that being said if the Market Cap was $739,680,000 (5.50 x 134 mil) to maintain the same Market Cap with add to the O/S it would be $739,680,000 divided by the O/S giving us a new share price of $5.13. Thats what they call diluting the share value. The shares won't split that happens rarely to Canadian stocks. In all reality if the company was worth $5.50 before the bought deal its still worth the same amount per share or a little more with another $50 million in the bank. Our new market cap should be roughly $790,680,000.
Alll numbers are approximated and used only for this example. Hope this helps