The definition of Dilution being, “The dilution of the current value, and voting power, of the existing shares on issue”
2.2-Technical information required by ASX Listing Rule 7.1 Sub section
(h) if the Consideration Options are exercised, a total of 737,500,000 Shares would be issued. This would increase the number of Shares currently on issue from 1,361,815,830 to 2,836,815,830 (assuming that no other Options are exercised and no other Shares are issued other than the corresponding Consideration Shares to be issued) with the effect that the shareholding of existing Shareholders would be diluted by an aggregate of approximately 52%.
If you take the proposed 737,500,000 consideration shares, and combine with the same number of proposed consideration options, the potential total of completely diluted new shares would be 1,475,000,000.
If you divide the potential new fully diluted share figure of 1,475,000,000, by the existing issued share amount of 1,361,815,830 + existing options amount of 818,797,372, the actual percentage of dilution is 67.641%
If you wish to split up the options and sharesIf you only use the consideration share figure of 737,500,000 and divide it by existing shares on issue figure of 1,361,815,830, the actual percentage dilution of existing shares would be 52%
However the same amount of consideration options being 737,500,000 divided by the existing options on issue figure of 818,797,372 as of 16th may 2018. The actual percentage of dilution is 90.0711%
3.2-Technical information required by ASX Listing Rule 7.1
Sub section
(h)If the Consideration Options are exercised, a total of 550,000,000 Shares would be issued. This would increase the number of Shares currently on issue from 1,361,815,830 to 2,461,815,830 (assuming that no other Options are exercised and no other Shares are issued other than the corresponding Consideration Shares to be issued) with the effect that the shareholding of existing Shareholders would be diluted by an aggregate of approximately 45%.
The definition of Dilution being, “The dilution of the current value, and voting power, of the existing shares on issue”
If you take the proposed 550,000,000 consideration shares, and combine with the same number of proposed consideration options, the potential total of new shares would be 1,100,000,000.
If you divide the potential new share figure of 1,100,000,000, by the existing issued share amount of 1,361,815,830, + existing options amount of 818,797,372, the actual percentage of dilution is 50.444%
If you wish to split up the options and shares
If you only use the consideration share figure of 550,000,000 and divide it by existing shares on issue figure of 1,361,815,830, the actual percentage dilution of existing shares would be 40.387%
However the same amount of consideration options being 550,000,000 divided by the existing options on issue figure of 818,797,372 as of 16th may 2018. The actual percentage of dilution is 67.171%
3.3 Dilution The Company currently has 1,361,815,830 Shares on issue.
The below table show the dilutionary effect on Shareholders if both Resolution 1 and Resolution 2 are passed:
Column 1
Column 2
Column 3
1
Total Shares Issued
Dilution %
2
Dilution following issue of Consideration Shares
1,287,500,000
48.60%
3
Dilution following issue of Consideration Shares and Consideration Options (fully diluted)
2,575,000,000
65.41%
The table above is also misleading, as the two percentages of dilution have not been totalled, to show the overall dilution percentage
As shown below
Column 1
Column 2
Column 3
1
Total Shares Issued
2
Current Shares on issue as of 30/4/18
1,361,815,330.00
3
Current Options on issue as of 30/4/18
818,797,372.00
4
Combined total of existing shares and options
2,180,612,702.00
5
Proposed issue of combined resolution Consideration Shares
1,287,500,000.00
6
Proposed issue of combined resolution Consideration Options
1,100,000,000.00
7
Combined total of proposed shares and options
2,387,500,000.00
8
9
Total overall dilution of existing shares and options
is equal to total proposed divided by total on issue
