from my understanding Dilution will only happen if the company fails to pay the loan money! If the 1 Billion dollar deal goes through they have no worries. He will have money coming in all direction to buy back shares.
By the way there are a lot of people out there who have sold higher and would want this to dip further so that they can buy in big. They will intentionally throw words like dilution , scam etc,..
I almsot fell for that until I called and got the story right! so be careful. If a PR comes out saying that the 1 Billion dollar deal is complete than it will bring in a lot of new investors and the PPS will not be here because:
- nearly all the gaps have been filled. - over sold sitiuation is near. - good news all around. - lots of long term holders. - 10 million cash about to land in BGMO 's hand. - 1 billion dollar contract almost near complete. - buy backs initiation.
It means that the $1 share price associated to the loan is backed up with 100 million shares if Bergamo fails to pay it back in the time frame agreed upon
However this should never come to fruition because the the money is flowing into the company and acquisitions are coming
The share offer is just collateral for the loan. No one is going to give out a loan without some sort of colateral.
This is why we have had panic sell off and this is the sole reason why the PPS has fallen.
Bottom line it was a crappy worded PR that confused and scared some.
Sorry for the delay in geting back to ya. I'm at work and my duty was called upon.
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