No I am saying a company with a $30m undiluted market cap would normally not commit themselves to $35m of funding (more than their current market cap) due to the potential to increase their SOI so significantly, especially giving the lender the option to take ongoing interest repayments in shares. If it was $3m funding at a discount, the market wouldn't care that much because the dilution doesn't have the potential to be so massive.
The 3rd tranche ($20m) I haven't bothered factoring in as there are so many moving parts to that. SOI is very important because its how market cap (which you agree is important) is calculated. If the shares on issue here gradually double (or more) the same 1.9c share price suddenly commands a $60m+ market cap.
Diluted enterprise value is what should really be considered though, but we don't need to open that can of worms again lol.
Ann: Pause in Trading, page-192
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