What dilution impact will the issuance of 3,225,000 new shares have on existing shareholders' ownership percentages?

The issuance of 3,225,000 new shares will dilute the ownership of every existing shareholder because the total share count will increase. Dilution can be expressed as

[
\text{Dilution %}= \frac{\text{New Shares}}{\text{Existing Shares}+\text{New Shares}}\times100\%.
]

Scienture’s most recent Form 10‑K (filed Feb 2025) disclosed approximately 15.1 million shares of common stock outstanding. Plugging that number in:

[
\frac{3.225\text{ M}}{15.1\text{ M}+3.225\text{ M}} \approx 17.6\%.
]

Thus, each current holder’s proportionate stake will be reduced by roughly 17‑18 % (i.e., a shareholder who owned 1 % of the company pre‑offering will own about 0.82 % afterward). The exact figure will vary slightly with any share repurchases or other issuances that occur between the filing date and closing.

From a trading standpoint, the dilution pressure is modest relative to the company’s market cap (the $3.9 M raise represents ~2–3 % of the post‑money valuation). In the short term the stock may experience downward pressure as the market prices in the increase in share supply, especially if the offering is perceived as a cash‑infusion rather than a strategic acquisition. However, the net proceeds can be used to fund pipeline development, which could offset the dilution impact over the medium‑term if the new projects translate into higher revenues and earnings. Traders should watch the price action around the August 15 closing, look for an initial dip of 2‑4 %, and consider buying on pull‑backs only if the company’s fundamental outlook remains strong and the cash raise is clearly directed toward value‑creating initiatives.