Kraig Biocraft Laboratories Inc (KBLB)

[sojomy]

This still doesn’t mean the value of your shares are worth 7.35% less because you still have to calculate in the value of the $10 million added to the market cap.

Ok, I understand how that math works. I guess I was just thinking about long term value dilution, and associating it with short term value dilution. If I have 300,000 shares right now, I have 0.35112% of the total shares. If the company got to a $10 Billion market cap, my shares would be worth $3,511,200.

If they do a 100:1 reverse split, and sell $23 Million ($10 Million of shares + warrants + 15% over allotment) of shares at $4.25 each, that adds 5.4 Million shares to a post-r/s share count of 8,544,100, or a new total shares of 13.96 million. My post-r/s 3000 shares are now only 0.02149% of the total shares. If the company got to a $10 Billion market cap, my shares would be worth $2,149,000, or $1,362,200 less than they would have been pre-stock dilution.

I used big numbers to show a big difference, but the percentages are the same. My current shares would still be worth 40% less in the scenario above, no matter what the company ends up being worth.

So keeping the price low before the offering is hurting current share holders.

This is definitely agree with. I feel like this will have the biggest impact long-term because the lower the stock price is when the r/s ratio is determined (which sounds like it will, though not with an exactly static correlation, affect the chosen offering price), the higher the ratio will need to be, and the more % dilution of shares there will be?