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Message
re: OWLT Baby products.
Posted on 2/19/23 at 1:05 pm to ATLsuTiger
Posted on 2/19/23 at 1:05 pm to ATLsuTiger
quote:
It is a sizable dilution
Wish I understood dilution better. Could you explain in simple terms?
I know the convertible securities were issued and apparently convertible into 60m shares.. but how does this “hurt” the current shareholders from a dilution perspective?
2
Posted on 2/19/23 at 3:36 pm to LSUcam7
The more new shares that are added, the less valuable the current ones become.
Posted on 2/19/23 at 9:14 pm to LSUcam7
Dilution - When AUPH was $7/share six years ago, the company was worth slightly more than 700 million dollars. There was 94 million shares outstanding.
Since then, the company has diluted twice to raise capital. Since there are now about 150 million shares outstanding, the company is worth about 1.2 bn at 7/share.
So a 3 bn dollar buyout only yields about 20/share whereas it would have been north of $30/share had they never diluted.
My math isn’t exact, but you get the point…
Since then, the company has diluted twice to raise capital. Since there are now about 150 million shares outstanding, the company is worth about 1.2 bn at 7/share.
So a 3 bn dollar buyout only yields about 20/share whereas it would have been north of $30/share had they never diluted.
My math isn’t exact, but you get the point…
This post was edited on 2/19/23 at 10:42 pm
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