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Gold/Mining/Energy : T.ITE: iTech Capital (TSE)

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To: Rob Davis who wrote (4332)3/3/2000 4:45:00 PM
From: Thomas Kelly  Read Replies (1) of 5053
 
I believe that financings in the past were always looked upon in a negative light due to the share dilution that they cause

I beg to differ here Rob. Equity financing does not cause dilution because you are getting $1 in assets (i.e. cash) for every $1 in shares issued. Dilution would only occur when the number of shares increase with no corresponding influx of cash (as in the exercise of stock options for example). I believe the street usually looks favourably on new financings, especially by small caps, as it is a sure sign of growth.

Tom
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