For those interested in the calculations, a successful raise of...

For those interested in the calculations, a successful raise of $10M at 38 cents will see total shares on issue increase from 56.9M to 83.2M. Of these 26.3M (31.6%) will have been issued at a 17.8% discount. The value dilution resulting from the issue therefore is 5.6% (i.e. 31.6% of 17.8%).

This is countered by the substantial increases in assets and shareholder equity that will result from the injection of $10M in cash. Allowing for recent cash burn, total assets will rise from $6.5M to $16.5M (+154%) and shareholder equity from $2.1M to $12.1M (+476%). A further multiplier of 333% will apply to the associated sales revenue, as explained in an earlier post.

Theoretically, the market cap should increase by $10M as a result of this sudden increase in fundamental value. Yeah. Yet to be seen.