North American Cannabis Holdings Inc (USMJ)

[PRmaniac]

Wrong about dilution -
an investor holding shares has a certain percent-ownership of the total shares issued/outstanding.
As that investor experiences the billions of shares of dilution, their percent-ownership of the market cap declines (fast).

The share price declines because the company has tons more shares issued. The share price declines because the billions of shares are converted at 50% of the share price or so, and are immediately dumped by the toxic financier to lock-in their profit. This also puts more downward pressure on the share price.

The company then has to reverse split or drastically increase their share authorization because they still have toxic notes, but don't have enough shares authorized to allow the conversion.

In a drastic example of toxic death spiral financing ruining easting investors; the company may have to issue so many shares and the share price after the reverse split keeps falling to the previous pre-split price.....then they have to reverse split again.......resulting in an investor that had 5% of the market cap eventually owning 0.001% of the bloated market cap.