The prescribed post R/S A/S set at 20B? If so, makes no difference if it were 5B in an investor's perspective. SOUM would be unable to EVER dilute to that point. Retail investors would not buy into SOUM. SOUM would be unable to sell these shares. Its purpose is, as stated, to assure against takeover and for future acquisition transactions.
Lets take a look at the 'acquisition transactions'. Refers to share swap to 'buy' the acquisition. Existing share holders get x number of SOUM shares, etc. Boom! The O/S is tripled!
That kind of dilution is really no threat to current holders IF the new asset provides value added to offset the affect of dilution. In the ideal world, the impact on the pps would actually increase, especially if the asset was an immediate revenue generator.
In the real world, who knows! But I contend that, as an investor, it would not bother me to see SOUM take such action (as they infer they would). My fear would be to see substantial rises in the O/S for reasons we have seen SOUM use in the past - NO value added asset, just for purposes of personal gain, personnel requirements and keeping the lights on...and never explained for public consumption.
So, I have little choice but to "trust" SOUM management one more time. Expecting the same as past but hopeful that SOUM HAS really turned the corner and will actually take investor need for return seriously.
Won't have long to wait, by end of April - we will know. Fingers crossed!!!
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