PCT Ltd (PCTL)

[snow]

HL If PCTL owns 50% of the joint venture company that stake is of course diluted if the joint venture company sells shares. There is no direct dilution for PCT shareholders but there is some indirect dilution. I think royalties are normally based on revenues and not profits - the top line rather than the bottom line. As long as no percentage is announced the royalty may be significant or next to nothing. The higher the royalty the less the stake PCT has in the joint venture company will be worth. For PCT the best option would be to get a good price for the fluid which would reduce the value of the stake in the joint venture company since profits in the latter will also be owned by other shareholders.