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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: yard_man who wrote (164811)5/9/2002 11:23:07 AM
From: posthumousone  Read Replies (2) of 436258
 
#1
Issue 10 million shares@$1.50
Issue half-warrant with each share.
One WHOLE warrant allows purchase for $2.00
Assume the warrants are exercised.
Therefore dilution is 15 million shares.
Therefore a 7.9% dilution

#2
Conglomerate can purchase 6,666,667 more shares before closing - whenever that is. Each purchased at $1.50 and each having one-half warrant. Assume all are exercised as above.
Therefore 6,666,667+3,333,333 = 10 million more shares.

Therefore, 25 million new shares have been created.
and overall dilution is approximately 13%

I hate to see shares diluted. Dont know much about mgmt....Hope they spend it wisely

I dont see why they would halt the stock on this news though
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