After posting my post about consideration, I just
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Cytodyn Shareholders Community
A Fahham · 1h ·
We’re in good hands.
The important thing to remember though is that, for shareholders, this does not necessarily reduce the value of their holding. If diluting is the best, most efficient way for a company to grow at a given time, then it can increase shareholder value. A company will not issue stock for nothing in return. What it receives in return, be it the assets of another company, the knowledge and leadership of a new CEO, or just plain cash capital, adds to the value of the company. While the original shareholders ownership represents a smaller portion of the company, if the overall value of the company has risen, the value of their holding could stay the same or even rise. It all depends upon the value of the assets received for the issue.