Monday, February 04, 2019 11:36:17 AM
Sure they are diluting in this phase of their business. But is this bad for current shareholders? Not necessarily. See what Investopedia has to say on this subject:
Many existing shareholders don't view dilution in a very good light. After all, it means by adding more shareholders into the pool, their ownership of the company is being cut down....
But it isn't always that bad. If the company is issuing new stock as a means to boost revenue, then it may be a positive. It may also be doing so to raise money for a new venture, whether that's investing in a new product, a strategic partnership or buying out a competitor.
https://www.investopedia.com/articles/stocks/11/dangers-of-stock-dilution.asp
As far as I can tell Crop is using money raised from issuing new shares and warrants mainly to expand their business and fund current revenue generating operations. Unlike many other "pink" companies they are not using money raised this way to "line their own pockets".
In summary, I believe Crop is using money raised from dilution to ramp up their revenue operations as quickly as possible and will either slow down or stop dilution completely once they are generating enough revenues to use cash from operations for all their current needs. -jmho
FEATURED Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM
North Bay Resources Announces Mt. Vernon Gold Mine Bulk Sample, Sierra County, California • NBRI • Sep 11, 2024 9:15 AM
One World Products Issues Shareholder Update Letter • OWPC • Sep 11, 2024 7:27 AM
Kona Gold Beverage Inc. Reports $1.225 Million in Revenue and $133,000 Net Profit for the Quarter • KGKG • Sep 10, 2024 1:30 PM