Blue Biofuels Inc (BIOF)

[LTE]

BREAKING DOWN 'Down Round'

While each funding round typically results in the dilution of ownership percentages for existing investors, the need to sell a higher number of shares to meet financing requirements in a down round increases the dilutive effect. Due to the potential for drastically lower ownership percentages, raising capital in a down round is often a company’s last resort, but the new funding may represent the company’s only chance of staying in business.

Read more: Down Round

http://www.investopedia.com/terms/d/downround.asp#ixzz4gFpRt5pu
Follow us: Investopedia on Facebook