Capital B's €21M Raise Triggers Warrant Dilution Alarm
Capital B's private placement of shares and attached warrants has generated €21.01 million in gross proceeds, but investors are warned about the potential for significant warrant dilution.
The company plans to use the funds raised from selling 36,219,070 shares at €0.58 per unit to buy another 270 Bitcoin. The immediate deal would increase Capital B's treasury from 3,145 BTC to a potential 3,415 BTC.
However, the four warrants attached to each new share create a larger layer of contingent dilution. If every warrant were exercised and no additional Bitcoin were attributed to those proceeds, Capital B's potential 3,415 BTC would be spread across 601,973,171 displayed diluted shares, resulting in about 5.6730 BTC per million shares.
The five-year warrants are contingent on investors choosing to exercise them, so the associated shares and cash have not been received.