$SBET I am absolutely no expert in reading these SEC docs so take this with grain of salt...
But what I've underlined in red, blue, and green here all seem to have been previously announced
To me that shows that the orange underline is the only new dilution here, which is about 10 million shares
Now nobody loves 10 million share dilution into 59 million, but that doesn't seem worth of -75% on a stock that everyone already knows will likely use dilution to raise funds to buy $ETH as they've previously stated
To me, I wonder if an algo misread this document and went wild, thinking this was all new dilution
Or, there is something I simply completely don't understand about what this document says, which is also possible
@ethereumjoseph any clarity you can provide I'm sure everyone would appreciate
Furthermore, in this filing dated May 30, they previously announced up to $1 billion of dilution, so nothing here is a surprise
$SBET market cap @ 59.4 million shares @ $9/sh = $534 million
If we include the 10.4 million share dilution from this filing, that puts us at 69.8 million shares @ $9/sh = $628 million
They hold $425 million of $ETH
After this decline they are very nearly trading at NAV
My math was a little off on the final shares outstanding as even though only 10.4 million of the warrants are new, none of the warrants at all have been exercised yet, so they aren't in the current shares outstanding
The doc clarifies this much further down that the final shares outstanding after all exercised warrants would be 77.5 million shares
@ $9/sh market cap would be ~$700mm
Okay one more note, there's potentially another ~46,500 unvested options and RSUs out there that could vest at some point; no vesting date mentioned
These are usually employee compensation
Looks like there's some clarity here from Consensys on another part of the doc that people/algos may be misinterpreting
The filing is a standard SEC resale registration statement with all participants shares being registered as part of the registration. It does not reflect any actual sales or anyone's sales being sold (which may or may not happen, I have no idea). But it's a basic registration statement. Of course all the shares get registered.
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