"LOL, not figuring in the dilution? Well how is dilution good for a common shareholder? It only wipes out their investment more and more over time?"
THAT, as a blanket statement, is ridiculous (yes, IMO!). Any company in the position of OCAT, which needs funds to take the company beyond its pre-revenue/profit stage, has limited value. We all know and can see that. OCAT has huge potential but investors are only willing to invest so much, and at only so much of a price, as a result-if willing to invest at all. One inherent risk is that there will NOT be financing available to sufficiently take the company to the next stage. We all understand that can be a huge limitation on value. Companies with great products or great science, or on whatever basis have great potential fail at times because they could not secure necessary funding to take the company to the next stage. For THAT company, it is worth virtually nothing beyond what it can sell its hard assets and sell or license its IP, etc. For THAT company, you would be willing to significantly dilute in order to bring in needed funds. Dilute it 50%- it is worth far more having 50% of a company that is now financed to make profits than 100% of one that will never get there and fold.
The question is: how much dilution is needed in order to properly fund the company to the next stage- hopefully one of revenue and then profit. The better the product, the science, whatever, the more confidence there is in ultimate success, the less the cost (in diluted shares) of the needed funding. This is so elemental and is, and continues to be, wholly ignored by all of your repeated posts about dilution. TODAY, none of us knows what that funding is going to look like. For many of us on this board, we feel there is good reason to believe (perhaps that belief will be shown in the future to have been misplaced)that the current management of OCAT has in its pocket, or will have in place before long, the needed financing to carry us through to profitability and that the cost of that financing will not cause material dilution. None of us on this MB are in a position to calculate what the cost of capital is going to be with any precision. These are all risk factors, among others, to be taken into account when considering investing in a company like OCAT or when contemplating continuing to hold shares after having made the investment decision. BUT, TO MAKE SUCH BLANKET STATEMENTS ABOUT THE EVILS OF DILUTION is naive, misguided and of no value to anyone. IMO!
