This is not negative dilution! New cash going into this young company increases the company value, so YES your share of the pie is smaller, but the pie is bigger, meatier and that much more valuable. Your shares will be too, despite the loss of percentage ownership. Negative dilution is the granting of free stock to, well...anyone who does not bring satisfactorily greater value to the company than the shares received (most directors fit this bill, and often employees)
Frost had to pay for his shares. No value has been lost in Frost's purchased shares (though your percentage ownership did go down), and Arnold could bring far more value to your shares than the shares he received. I would not be on board with these sweet heart deals if the company were seasoned and able to buy back it's stock, but this is not the case. Arnold and Costco will be a huge deal. Arnold's face on a label will open up further distribution options. The sky is the limit. Now we need a good military type movie for Arnold to star/co-star in. Something that will be super popular with the body builder types out there.
This thesis would be broken if the company cannot become net positive (or have a stupendous reason for being net negative) this year I'd say.
Surely this does not surprise you. Why do you think they did the R/S? Dilution is the only way for this company to pay for operations as loss after loss compiles. Don't forget the shares given to Arnold.
It takes money to make money. There is nothing worse in a young growing company than to be under capitalized. The additional cash will strengthen the balance sheet and allow them to pursue the growth of the company. Growth is what the market will pay a premium for.
Yes , somehow you are going to make this out to be bad? If you had several billion in the bank you would be getting a discount as well but you don't so you have to pay full price. This is a great thing and the second round of investment into mslp by dr. frost. This is heading to 20 in the next couple of months if not higher.
Great news Frost has bought more! He obviously believes in MSLP, hop along for the ride. I keep accumulating shares when I can. Q2 on Wednesday, then NASDAQ news to break, Costco and potentially Target and Wal Mart as retail exposure continues to expand, top athlete endorsements and finally starting to turn profits. What's not to like?? MSLP will be one day the top of the line and most popular supplement company out there IMO. I believe in this company very much.