Illustrate the calculation method of equity dilution with examples.

1, diluted equity of shareholder A = original equity ratio of shareholder A * registered capital+capital contribution of shareholder A this time.

2. When the company's ownership structure is complex, that is, in addition to ordinary shares and non-transferable preferred shares, there are convertible preferred shares, convertible bonds and warrants, because convertible bondholders can make themselves common shareholders through conversion.

Extended data:

Equity dilution exemption:

As we all know, many companies have diluted their shares in the process of financing, so they regret it. However, many enterprises have detailed plans to prevent this phenomenon at the beginning of financing. How to avoid dilution of equity in financing? We use the "anti-dilution clause" signed by Carlian Technology and LP to illustrate the specific content:

After the capital increase is completed, if Kalian Technology increases its registered capital again, the valuation of the company by the new shareholders before the capital increase should not be lower than the valuation after the completion of this investment, so as to ensure that the equity value of the company held by PE will not be diluted.

If the registered capital of the company is increased again, and the company's valuation is lower than the company's investment before the new shareholder's capital increase, PE has the right to adjust its equity ratio in the company to ensure that the equity value will not be diluted; If the company increases its registered capital again at a valuation lower than that after this investment, it will make cash compensation for PE.

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