Global Diamond Exchange, Inc. (GBDX)

[MSEED]

"Dilution", "Dilution". Amazing! I did not see one post state that likely the minor increase in O/S is to compenate the JV partners for merging with GBDX~! If I owned a business and brought in a JV partner, I would not pay compensation in cash, or incur debt to pay cash to the JV partner.

I would want involvement from the JV partner by offering shares of the company! This promotes loyalty and shows that the JV partners believe in the upside potential of the company; and the stock pps.

BS dilution to line pockets does not occur this way. At time of merger, 312M shares+-, now only 400M shares +- to purchase the 1st/2nd shipment of diamonds, open offices, and complete one of the strongest JV's of diamond industry. So, 400M+- share count with a company that could possibly do $3-5M month in revenue and huge net margins now with JV partners. If the minor increase, as you correctly stated is for $ to purchase inventory (presold) at large net profit; and now to bring in such a strong JV, great. Not a negative. It's called growth.

But I read so many inane posts whining about "dilution", and that the CEO should PR all of us to calm our nerves....
Get Real. The JV is so huge and noone seems to get it.

Best Regards
Not a buy or sell recommendation. My opinion only.