RE:RE:RE:Income StreamShare dilution works very good for a progressing company and disastrous otherwise for a company that is in trouble i.e. no demand for product/resource, price of goods in a downtrend. This is where you lose big time in otherwards. Absolutely no chance on return.
Hence, for Avalon if there is going to be a lithium mine being built and there was a 10 for 1 rollback and company current price at 2.00. It is hightly likely with good demand the stock would probably trade upwards of 10 dollars or more. Shareholders who bought less than 1.00 would get a good return on investment. Those that bought higher unlikely to get a return. However, AVL has been in the toilet or less than a dollar for the majority of last 10 years.
The current scenario at .20 AVL will need more financing and more dilution. The likely scenario is .50 cents would be tops and more likely a lot less. A mine if it was to be built would need a 100 million plus dollars and some of that would need to come from more share dilution i.e. 500 to billion shares outstanding.
The recent news of 3 million is not very much money and just basically pays for salary costs and some hole digging.
Yes, I've owned companies where there is a rollback such as a struggling oil company, struggling mining company, or struggling tech company. You lose absolutely big time and never will ever get a return on investment. Otherwards it is a tax loss or write off.