Ealixir Inc (EAXR)

[SkinFlint]

clevertrade

The answer to your dilution question is all in the S-1. Definitely worth a read through. Especially the following paragraph:

"The Registration Statement covers 170,000,000 shares of common stock under the IA. The entire common share requirement for the entire $15,000,000 under the IA would be approximately 6,072,874,494, based on an assumed LCBBP of $0.00209, representing 95% of the closing price of our common stock on November 30, 2010. However, we have decided to limit ourselves to 170,000,000 shares available, or $355,300, based on the closing price of our common stock as of November 30, 2010. If our share price rises, we will be able to draw down in excess of $355,300. If we decide to issue more than 170,000,000 shares, we will need to file one or more additional registration statements with the SEC covering those additional shares."

So the 170M shares is just the tip of the dilution iceberg.
To get all $15M in financing they have to issue over 6 billion shares at a price of .00209. With the current price being .0015 that number would be much higher that 6B.

Also they make it sound like they are being prudent in "limiting" themselves to 170M shares. However I suspect they have already issued close to 730M shares and cannot run over the 900M Authorized or else they will not get any financing. You can bet with 100% certainty they will be asking shareholders to authorize more shares next year. And guess what...they will get it because they have the backing of the big shareholders. Thats how they got the increase from 200M to 900M authorized shares.

The other sad fact is they will have to pay about 20% in fees so the net is only $286,860 of the $355,300.

Caveat Emptor!