A few points to consider...
The company appears to making these manuevers for a reason...what that is , we don't know yet...the signals appear to be positive though...
It is common for companies to have far more shares authorized than might ever be needed. In Torvec's case, who knows for sure how many shares wil be "needed". The fact that events could occur that would require a stock split is a very positive thing that causes zero dilution to existing share holders. Stock splits typically occur when a stock has reached high price points that make it less "liquid" inthe market...splitting brings the price back to more active levels of trading and is a sign of strength...agin ..there is no "dilution" ....if you have 1000 shares worth 100 each and a 2 for 1 split gives you 2000 shares worth 50 each...its the same..one hopes that through continued positive earnings etc, that price per share continues to grow back toward the pre-split levels providing even greater returns for investors...
In the case of selling more shares in an IPO to the public and or institutional investors, that does dilute existing shareholders but it might be done at a time when the company has alot of positive momentum and growing as a result of deals cut that are maturing..the growth could require capital...proceeds from the sale of those IPO shares go directly into the company's treasury...who knows if and when that would be required and at what level and size of offering. The fact that it's being addressed now seems to me to be another indicator that there some things happening that lend themselves to the comapny's planning ahead...one more point about an IPO which raises capital - I dont remember the numbers exactly but Torvec has raised something like 18 or 19 million to date through sale of it's stock and paying for services with stock, each of which has caused some dilution to fund the last several years of it's existance...if you want talk about dilution, if Torvec had succumbed to raising money through investment bankers several years ago, they would of had to give up 75% of the company to get 5 or 6 million bucks and most liklely done it with a death spiral in the agreement which means Torvec might not be here today...I commend the G's for not going that route and having the perserverance to get the company to this ppoint with frankly way less dilution than I would have dreamed..
Sometimes people are looking at the wrong end of the horse when they look at dilution and not the reasons behind it...
AI
