Think of it this way. If you owned a billion dollar company and put your assets in here, you could only issues yourself the remaining 260m shares. Therefore you would now only own 30% of your billion dollar company. If you do a 750:1 RS, then the legacy shareholders are under 1M and you have 1 billion to issue however you like and you own just about 99% of the company. Make sense now?
So, the hope is he issues shares that keep the market cap under the value of the company, so we can reap the benefits of future growth and expansion.
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