CAVU Resources Inc (CAVR)

[Willy]

One form of stock dilution is when a company uses shares to pay salaries and offer bonuses. When used in this manner there is no RTI for the company and the stock is simply diluted. However if monies received from new issues are used to fund projects that will eventually add to revenues and profits, then in essence, there is no dilution. Yes there are more shares outstanding but a significant increase in revenue, and bottom line profits, would increase the earnings per share and therefor increase shareholder value, and in most cases, the stock price would go up.

Therefor, IMHO using shares to fund projects that will eventually return, to the company, more revenues and profits than the company would have received if they had not issued shares and funded these project, is not dilution in the classic sense of the definition.