A massive O/S and then a R/S may be good for those that buy afterwards. But it would decimate current shareholders.
If you are a current shareholder that is the last thing you would want. I could not care less how structurally sound sound the company is for those that decide to buy in a years time. I,d be more interested in preserving existing shareholders equity.
A R/S very very rarely works out well for pre R/S shareholders. But yes if much more dilution occurs it is the likely outcome.
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