Zion Oil & Gas Inc (ZNOG)

[DragonBear]

Are you figuring mass stock dilution in order to raise funds I am guessing?

It's just math. If a ZNOG has to issue N shares at $2 (where it wiggled at for many year) to raise $20M+ to drill a dry well, then to raise the same amount of funds at 10X less the PPS, they will need to issue 10X more shares.

Example:

Need $20M with the PPS at $2, then issue 10M shares.

Need $20M with the PPS at 0.15, then issue 133M shares.

With the dilution of the 133M shares subsequently driving the PPS down.

Dilution in a Microcrap is never a problem, until after it happens.