Posted On: 08/19/2015 1:56:03 PM
Post# of 41414
Re: mopusmaximus #17096
I think the point is this:
Lets suppose that a PP investor gives BLTA $500,000. That investor will get PP shares at a discount of the market rate, let's say a 50% discount.
If today's PPS is $.01, then the investor will get 100,000,000 shares (500,000/.005).
Now, if today's PPS is $0.005, that same $500,000 gets the investor 200,000,000 shares (500,000/.0025).
So, the lower the PPS, the more shares that must issued to raise the same dollar amount, thereby creating a higher rate of dilution.
It's the best way to raise the necessary funds at this point, and it's just something we have to live with. Ideally, everyone should be accumulating more shares so that your % of ownership is not impacted by the dilutiion (easier said than done).
Lets suppose that a PP investor gives BLTA $500,000. That investor will get PP shares at a discount of the market rate, let's say a 50% discount.
If today's PPS is $.01, then the investor will get 100,000,000 shares (500,000/.005).
Now, if today's PPS is $0.005, that same $500,000 gets the investor 200,000,000 shares (500,000/.0025).
So, the lower the PPS, the more shares that must issued to raise the same dollar amount, thereby creating a higher rate of dilution.
It's the best way to raise the necessary funds at this point, and it's just something we have to live with. Ideally, everyone should be accumulating more shares so that your % of ownership is not impacted by the dilutiion (easier said than done).
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