Lexaria Bioscience Corp (LEXX)

[TonyX]

Warrants and dilution
Excuse the rounding:
The after the split, the company raised an additional 1.8mm shares and 1.8mm warrants...tha's 37.5% dilution immediately and another 37.5% of warrant dilution in the future.

There are still 1.8mm warrants now. So there's a massive overhang on the stock that will prevent it from reaching that $8 a share again (post-split, pre dilution). This happens all the time, a stock won't get bought up to the warrant price unless it's going to blow past it by a lot because the second those are triggered, the shares are worth so much less.

THis dilution was horrible for shareholders. We'll see how they actually start to spend this new money. If their salaries go up and R&D doesn't increase ten-fold, then we'll know for sure these are scammers.