Dilution and offerings

5d ago

Premarket notes on small caps. Free to read. The result is public the next day.

General market news. Not investment advice.

What dilution means

Dilution means the company has more shares than it did. Each existing share is a smaller piece of the company. The filing states the count. A headline that skips the count is incomplete.

Where the terms are

An S-1 registers shares. A 424B prospectus states the final terms: how many shares, the price, and who is offering them. Those three lines are the deal.

New shares can come from the company, from existing holders, or from both. Only the company portion increases the shares the company itself has issued. The cover says which.

What to watch

An amendment can change the count. Compare the new filing with the prior one. The difference is the change.

If the filing is not linked, the size of the dilution is not known. Do not fill it in from memory.

General market news. Not investment advice. The author may hold the Runner Flag name and does not trade it before the 9:30 ET open on the publication day.

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