OTCPK:KRCLF - Post by User
Post by
daw2on Aug 26, 2023 5:22am
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Post# 35606501
Simply Wall St. on Karora
Simply Wall St. on Karora New minor risk - Shareholder dilution |
The company's shareholders have been diluted in the past year. - Increase in shares outstanding: 2.5%
This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. This is currently the only risk that has been identified for the company. |