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Re: Immie post# 61

Thursday, 07/28/2011 9:56:08 AM

Thursday, July 28, 2011 9:56:08 AM

Post# of 38564
Regarding dilution wording in last filing....I saw that too....what you failed to understand is of course the new much larger company merging into LUXD will get shares. Of course they will end up owning the majority of the shares. Issuing stock to a big company to do a merger while technically it is called dilution...this is the one great way for a company to use their stock, To do a merger.

So yes there would be dilution to current shareholders....every merger this is how they work. Owning 10-20% of a monster company is way better than owning 100% of a sleepy little nothing company.

Also, that is boiler plate lawyer verbage that is added to every potential merger deal. All mergers dilute current shareholders.
Without issuing stock to do the merger there would be no merger.

A great split is 70% to new company, luxd shareholders keep 30%
80/20 still a great split. 90/10 deals can also be good.

So LUXD 51 million shares O/S
70/30 split would mean 140 million new restricted shares issued for merger plus 51 mil we already have and we could own shares in some giant company merging into LUXD and end up with under 200 million shares O/S after the merger closes.

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