Hey Koo, post transaction there is no dilution of the ownership in Newco until Newco does a financing of some type. Under the proposed transaction the current ownership of Zenith will own 100% of ZCC which in turn will own 100% of Newco, ie all 34.4 million shares of Newco. Newco will have to issue new shares at the time of financing which will result in the Newco dilution.

PV, Yes there are a set number of preferreds, I believe 75 million is correct. Those preferreds are all owned by Zenith currently. So if Zenith, in its' current form, continued to own the preferreds and the IP it would then have to do a financing to continue operations. Currently roughly 103 million Zenith shares own the 75 million RVX preferreds. Post a Zenith financing, without the proposed transaction, then the new, greater number of shares would own the 75 million preferreds. = dilution