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Re: tytlyf post# 48945

Sunday, 02/13/2011 4:07:37 PM

Sunday, February 13, 2011 4:07:37 PM

Post# of 58002
That's right ty. Theoretically the company is worth approx. $10,000,000 based on roughly 2 billion shs outstanding multipied by the current price. The addition of the $10,000,000 in capital theoretically increases the company value to $20,000,000 with not much decrease in the per share value (8% discount on shs purchased). Dilution is increasing shares without increasing value. If the company continues to lose money, we will have dilution. However, I don't see where Southridge would put themselves in a position to be requred to buy $10,000,000 of stock in this company unless they are fairly confident that profits will be generated. If that does occur, dilution may be avoided and we could in fact see increasing share value.