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Re: DreyDreyDrey post# 12658

Wednesday, 10/05/2022 11:50:32 AM

Wednesday, October 05, 2022 11:50:32 AM

Post# of 20436
I don't have the trouble you first mentioned as I use one of those buttons on the left and it worked well.

In regards to your second question...

If Todos was raising funds for 3CL Pharma with Todos shares it would be dilution. But they are not.

They are raising funds in 3CL Pharma in essence giving up equity for funding. There are a lot of ways to look at this and it can be debated until the end of days.

If 3CL Pharma is worthless as some say, then there is no loss of equity

If 3CL Pharma has little value without funding, then there is no loss of equity

If the value of 3CL Pharma goes up with each funding round then there is no loss of equity.

You can look at how a private company raises funds as one example. Beyond the seed round you have Series A, B, C, D, E, F, etc.

The VC don't cry dilution at each round, because it most cases, it's now a down round. The value keeps going up. Now some would argue dilution is dilution and it's always a bad thing. If that was the case with private startups, why in the world would anyone want to get in early knowing there are 3-10 rounds coming?

Couple of additional comments I posted previously...

"If Todos was raising for itself, you'd be right but that is not what is happening here. 3CL Pharma is valued independently of Todos MC/SP. But what is likely to happen is Todos MC/SP will gravitate to 52% of the valuation of the asset plus the existing valuation of Todos today."

"Why would a company do a spin-off?
Unlocking shareholder value: Perhaps the biggest factor driving spinoffs is the idea that the parent company is undervalued and that its remaining business valuation would be higher if it spun off one or more business units"