I don't want to argue either. I want to help because I think you're line of thinking is slightly off. Many people have been trained to think that all dilution is bad, but that is simply not the case. You just can't say that as long as dilution continues the price will go down. Granted, if dilution is used to pay salaries and/or anything that does not result in an asset for the company (which is most often the case in pinksheets), then the price should go down. If dilution is used to pay for revenue producing assets such as new stores and inventory, then the price should actually go up, not down. Let me try to explain, if 40k is raised to purchase inventory for a new store or website, then it is an even trade. 40k is raised and spent but 40k is acquired and added to the assets of the company. The only difference is that inventory is a revenue producing asset, that 40k in inventory will turn into 150k when sold. I'll put it a different way for you. If a company raises 500k tomorrow in order to pay for inventory, then, by your logic, the PPS should tank. Let's use, for the purpose of this example, a company that has 500M shares out and a share price of $0.006 and, therefore, a market cap. of 3M. Now, like I said, they raise 500k to pay for inventory, so, with the standard discount to market, they issue about 110M shares. How much do you think the price should go down?
-Rob
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