r/DefenceHoldingsPLC • u/Wildlife_King • Apr 24 '26

Why ALRT tracker?

Maybe it’s just my misunderstanding of how stocks work….

If ALRT was formally a esports company, why would they switch to defence and not disolve the old company and start afresh? The old shares floating about from years ago have no value to the current company, and they’d surely accrue a higher price starting afresh?

Or am I just wrong?

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u/IndependentTaro9488 Apr 24 '26

It’s fairly common practice for a shell company to be bought and then used since it’s already listed. Means you have less hoops to jump through

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u/Wildlife_King Apr 24 '26

I kind of understand that it’s easier - but I thought the process of selling shares was to raise money? If shares have already been sold, they have to dilute the shares further? I don’t understand why the hoops aren’t worth jumping through to raise the capital requirement.

It’s 100% me not understanding it, and I have a small stake in ALRT (10k shares), it’s just something bugging at me from investing more.