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Microcap & Penny Stocks : Tech Squared (TSQD)- Internet Commerce

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To: 24601 who wrote (431)6/19/1998 10:49:00 PM
From: Brian K Crawford  Read Replies (1) of 2752
 
Dilution matters, sort of

TSQD has 10,981,000 shares out. TSQD has an option on 4,800,000 DR shares. 4,800,000/10,981,000 = .44 DR shares per TSQD share.

That last calculation isn't likely to change much. Each TSQD share has a claim on .44 DR shares. No matter how many DR shares are outstanding. No matter hom many are issued.

So what matters is how much the IPO price per share is.

The IPO is to raise $20 million. If they can fetch $5.00 for each share it will take 4 million shares. At $10 each, only 2 million.

At $5 x .44 each TSQD share will have an option value of $2.20.
At $10.00 it will be $4.40.

Etc.

So what price per share will DR come out at?

Message 4577565

Message 4417175

Brian
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