Replies to post #58211 on Sigma Labs Inc (SASI)

[Pisd]

These are good points, but then the money raise is only enough for say 2 - 3 months.

[VisionaryInc]

As have I, I specifically invest in undervalued companies with high growth potential.

However, anytime a raising of funds like this, at a determined price per share, the market will adjust the companies valuation naturally, since that is clearly defined as the value per share by the contract.

Public or private offering, it doesnt matter.

There will be additional shares added to the amount of issued shares, which lowers to value of previously owned shares.

Instances where the PPS is not affected, would be when the company also announces additional revenues or contracts that the monies raised will be used for.

We know Sigma has many production contracts on the table, but no monetary value increase in the near term has been defined.

Also, no additional assets have been defined either.

So, all that has happened, is the company has issued (once converted) additional shares, at $1 each, to raise 875k, which will drive the price down, unless as I stated above, the announcement of new contracts, revenues or assets is announced, which would add to our shareholder equity, and counteract the dilution.

But that has yet to happen.

In other companies where you've seen the price not negatively affected by issuing additional shares, they more than likely announced new monies, assets, or otherwise to negate the negative effects.

Anytime additional shares are issued without a tangible increase in shareholder equity, it will lower the value per share just on basic mathematics alone.