What is the expected dilution impact on existing shareholders from the new units?

Dilution outlook

The extension of the non‑brokered private placement means the Company will issue additional “Units” – each typically consisting of one common share (or a share‑plus‑warrant) – up to the original tranche size announced on 30 June 2025. Because the placement is being completed in stages, the total number of new shares to be created will be added to the current share capital that existed at the time of the June announcement.

If the original private placement was sized at, for example, 10 million shares (or the equivalent share‑plus‑warrant mix) and Acceleware’s outstanding share count was roughly 30 million, the new issuance would increase the share base by about 33 %. Even if the actual tranche is smaller – say 5 million new shares against a 30 million‑share float – the dilution would still be in the 15‑20 % range. In short, each existing shareholder can expect their ownership percentage to be cut by roughly one‑quarter to one‑fifth, depending on the final size of the placement.

Trading implications

• Short‑term price pressure: The market will likely price‑in the dilution effect as soon as the filing is released, leading to a modest downward adjustment in the stock (typically 3‑5 % for a mid‑single‑digit‑percent dilution, and up to 8‑10 % if the issuance pushes the float above 15‑20 %).
  
• Long‑term upside vs. dilution: The capital raised is earmarked for expanding RF‑power‑to‑heat projects in critical‑minerals processing, amine regeneration, and enhanced oil production—segments with strong growth fundamentals. If the Company can translate the new funding into higher‑margin contracts or accelerated technology roll‑outs, the earnings boost could more than offset the dilution over the next 12‑18 months.
  
• Actionable stance: Consider a short‑term sell‑or‑reduce position to capture the anticipated dip, followed by a re‑entry on the dip if the price stabilises around the new capital‑raise‑adjusted valuation (e.g., 10‑12 % below the pre‑placement price). Keep an eye on the final placement size disclosed in the upcoming filing; a larger issuance will warrant a deeper initial discount, while a smaller tranche may limit the downside and present a quicker recovery opportunity.
  

Overall, the dilution is material but not catastrophic; the key is whether the market believes the additional capital will materially accelerate Acceleware’s growth trajectory. If the fundamentals look solid, the stock could rebound quickly once the dilution shock is absorbed.