Zandy, many Companies have the facility to issue new shares as and when required. To obtain this, they need authorisation from their shareholders. It is fairly standard procedure. The fact that they are asking for authorisation doesn't mean that these shares will automatically be issued. All it means is that the facility is there, just in case.
If ULT issue another 400m shares, it will not result in 25% dilution as you suggest. That will only be the case if they were issued at 0p. If they were issued at a 20% discount, the overall dilution would be 5%.
That doesn't mean the shares will automatically drop 5% either (although they should), it largely depends on what the monies raised will be used for. If investors feel the reason is 'good', the share price will rise. On the other hand, if investors feel the reason for dilution is 'bad', the share price will plunge.
Your 25% dilution theory is only valid if the Co. wastes all of the monies raised via the share placing.
The main concern for investors is the next set of interims.
If by that time, the Company has at least broken even or become profitable, any new share issue will not necessarily have the same negative influence which usually bestows loss making Companies. It is obvious that a loss making Co. needs money for working capital, and in that case, the dilution is very real.
The real danger for investors is that ULT is still making losses and issues another 400m shares.
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