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M_T_Pockets

07/10/11 10:36 PM

#9078 RE: MR 1955 DOUBLE DIE #9077

This company is going thru a merger. The "dilution" as you call it is a stock restructuring to make that merger possible. TacAir gets ~46.7% (approximate figure) of the post merger shares as part of the terms of the deal. In order for that to happen, one of two paths had to be followed. Either TADF had to buy back a boatload of shares, or the Authorized Share count had to be increased. Since TADF does not have bags of cash sitting around, then the latter course is the only logical way this merger could take place.
Since the combined entity will be substantially more valuable, I don't think you could really call it dilution. TADF is getting value for the stock and it is not being sold or traded on the open market.
Do your instincts tell you to wait till after the merger? Then be prepared to pay a premium for the stock, because a good part of the stock included in the merger restructuring will be restricted from sale for a period of at least 1 year.
There will not be that many shares available to sell or trade.

I hope this answers your question.
Good Luck, whatever you decide to do.
TADF long, mean & lean!