Bioelectronics Corp (BIEL)

[misanthrope]

The scenario you articulate is vastly different than that presented by stock dilution. Loans, debt, private placement investment, etc., outside the world of stock transaction, has an entirely different impact on share and shareholders. If the kitchen is built with traditional debt (not dilution), shareholder value impact may be nil. Debt is raised, project completed, debt is paid, sales increase (hopefully), efficiency is gained, profits rise, translates (all things being equal) in increased shareholder value.

Financing the build via dilution immediately negatively impacts shareholder value - period. A share structure built to finance via dilution impacts that value indefinitely, until something else changes - altered share structure, perhaps. Should a diluting company do well, translating that to shareholder success is more difficult, because the flippers will play the ride, and the recipient of the dilution, likely holding huge blocks, will also play the ride and possible dump into the marketplace, keeping the rises lower than might otherwise be expected.

The method, and results, are different.