What happens to the value of my shares if the company issues new shares (dilution)?

The value of your investment could be reduced and the new shares could have additional rights that your shares don't have.  The Shareholder Agreement and Articles of Association will set out the rights attaching to any shares you purchase and may include conditions for any subsequent shares to be issued.

Whether your investment is affected will depend on the basis on which your shares were issued and the basis on which any new shares are to be issued.  The basis on which your shares are issued will be set out in Investment Offer and the rights attaching in the Company's Articles of Association and  any related Shareholder Agreement.  All of these are provided as part of the raise documents.

Dilution occurs when a company issues new shares that result in a decrease in existing stockholders' ownership percentage of that company. This can result in a reduction in value, entitlement to dividends and voting power.

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