3DM 0.00% 0.0¢ 3d medical limited

3DM are purchasing Mach7 by issuing new shares to Mach7, so...

ANNOUNCEMENT SPONSORED BY PLUS500
ANNOUNCEMENT SPONSORED BY PLUS500
CFD TRADING PLATFORM
CFD Service. Your Capital is at risk
CFD TRADING PLATFORM CFD Service. Your Capital is at risk
ANNOUNCEMENT SPONSORED BY PLUS500
CFD TRADING PLATFORM CFD Service. Your Capital is at risk
  1. 120 Posts.
    lightbulb Created with Sketch. 2
    3DM are purchasing Mach7 by issuing new shares to Mach7, so there is no consolidation, but dilution. In practical terms, say you own 100,000 of the 1,000,000 shares availablein 3DM (note, these are not the actual figures). You own 10% of the company. But now they are issuing another 1,000,000 to purchase a new company. After those shares are issued you own 5% of the company.

    If 3dm were issuing new shares for no reason (say they need cash desperately), then you holding would become less valuable as there are more shares available for no value added to the business. However, because they are buying an established business, this should in theory add value to the company to offset the issued shares creating dilution.

    As for how much value, who knows? Mach7 is still making a loss, but the gap is closing of you look at the presentations. Plus, they are signing new clients. Unfortunately the announcements don't provide the financials for signing the new clients.
 
watchlist Created with Sketch. Add 3DM (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.