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Microcap & Penny Stocks : THNS - Technest Holdings (Prev. FNTN)
THNS 0.00Jun 7 5:00 PM EST

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To: sammaster who wrote (11452)3/18/1999 11:14:00 AM
From: Wally  Read Replies (1) of 15313
 
Samir: Additional shares can be bad.. or good.
Bad when share dilution is used as a means for paying fixed expenses. Good, because when used correctly (exposure, expansion, R&D etc.) the issuance of additional shares can give a company a tremendous boost. Also, more shares can mean more interest from brokerages. if the outstanding quantity of shares is too low vs. market interest, a brokerage house can accidentally end up owning a small company and that is not their intent nor their business.
So the answer to your question is totally in the intent of the company.
As for FNTN, I can't guarantee their intent but I can guarantee that such a move was necessary if they plan to do any sizable business - and probably necessary if they want to be listed sometime in the future.

Wally
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