DilutionWith all this talk about dilution, I decided to redo the numbers to see exactly how much ECS shareholders will be diluted post merger and recent A$16.5m raise.
I have excluded options for both ECS and JRV for simplicity and frankly since the vast majority are out-of-the-money.
JRV shares on issue post M2 merger = 287.1m (
https://www.asx.com.au/asxpdf/20190620/pdf/445zlm2p2ppych.pdf)
Shares to be issued for A$16.5m @ 20c = 82.5m
(
https://www.asx.com.au/asxpdf/20190628/pdf/44667d8q3mhxmq.pdf)
Shares to be issued to ECS shareholders on a 1.65 to 1 ratio = 1.65 x 166.4m = 274.6m
(see slide 5,
https://www.asx.com.au/asxpdf/20190628/pdf/446683y809j1cm.pdf)
(
https://www.ecobalt.com/investors/shareholder-info)
Total JRV shares on issue post M2 & ECS merger and raise = 644.2m
ECS % ownership of merged entity = 274.6m / 644.2m = ~43%
So that’s a
57% dilution for ECS shareholders post merger…..
Happy to be corrected if I messed up any calculations.