Posted 18 April 2018 - 10:17 AM
But when I read the below article it's got me confused a bit:
"More isn't always better
While issuing new shares of stock may seem like a good idea in theory, it can sometimes have a negative impact on shareholders. When a company issues additional shares, it can cause its existing shares to become diluted. If the total number of shares outstanding increases, each existing stockholder's individual ownership share of the company will become smaller, thus making each share of stock worth less."
Posted 18 April 2018 - 10:01 AM
It is pricing the rights offer at 22c per share — a third of Friday’s 65c closing price — and offering shareholders 10.35 new shares for every share held."
So am I right in saying because more shares have been issued in to the market the shares are devalued , i.e. If it was 65c before and the shares in issue increases 10 fold it's actually worth 6,5c
Posted 18 April 2018 - 09:46 AM
Posted 18 April 2018 - 08:46 AM