As promised in an earlier blog post about Bulleit, bottle shapes, and blurring (“dilution” was the word I mostly used last time, but I was really eager for that alliteration), I am back with an updated blog post. As a recap to the earlier post, the case involves Diageo, the company that owns Bulleit Frontier … Read more
Time flies when you’re having fun. In November & December 2018, I wrote a series of posts about ownership dilution in the context of startup fundraising – it seems like it was yesterday – but apparently it was more than two years ago! If you’re interested in checking out those posts, they’re available here and … Read more
Building on the totally tubular authorized, issued, and outstanding shares (pizza slices) post from two weeks ago, this post discusses a simple dilution example to help highlight the basics. Leonardo’s Pizza Parlor has 5,000,000 Authorized Shares; it has 1,000,000 shares outstanding. Let’s assume you own 100,000 shares of the Company – or 10% of the … Read more
This is the first post in a series about dilution. Before we start down that path though, lets start with some simple background information. The key to understanding dilution comes with three simple words: Authorized, Issued, and Outstanding (shares). Authorized Shares means the total (read, total ever) shares a Corporation can create or “cut itself into.” If … Read more