What dilution effect will the issuance of 13,560,000 shares and warrants have on existing shareholders?

The offering will add 13,560,000 Class A ordinary shares to the float now, and the accompanying warrants could generate another 13,560,000 shares if fully exercised. In the worst‑case scenario the company could increase its share count by ≈27.1 million shares – essentially a “double‑dilution” because each existing share will be worth roughly one‑half of what it is today, all else equal.

For existing shareholders the immediate dilution is the 13.56 M new shares, which reduces their ownership percentage and spreads any existing earnings, cash, and book value over a larger base, lowering EPS and book‑per‑share. If the warrants are later exercised the dilution deepens, cutting the original stake further. This mechanical dilution normally creates a short‑run sell‑off; price normally trends lower by the amount of new supply (often 5‑10 % in comparable micro‑cap offerings) as the market re‑prices the company with a larger share pool and a lower net‑asset value per share.

Trading implication: Expect a modest, but noticeable, downward pressure on CJET’s price in the next 1‑2 weeks as the market digests the added supply. If the capital raised ($8 million) is earmarked for growth projects that can improve margins or fund NEV expansion, the longer‑term fundamentals may be upgraded. Traders can consider a buy‑the‑dip strategy once the initial dilution‑‑driven sell‑off stabilises—targeting a 5‑8 % lower level than the pre‑offering price—while keeping a tight stop just above the new support, especially if volume remains thin and the technical picture shows the share‑price still near the established swing‑low trend line.