issuance price
crashed ~$0.30
pre-crash ~$0.39
same $1 of deal = fewer shares
How a crashed share price makes stock-funded consideration dilutive
1 · crash shrinks
value per share
higher
lower
~$0.39
2 · fund the consideration
cash ~$1.4M — not an option
vs ~$26.4M quarterly op loss
3 · fund with stock
more shares per $1
÷ $0.39
≈ 2.6 shares / $1
4 · dilution
per existing share
existing holders
fund via stock
5 · loop: more shares → deeper dilution → lower price