Baristas Coffee Company, Inc. (BCCI)

[MarketCap]

That may be the case, if all they were selling were shares. Convertible debt is a funding instrument. As the company continues to expand and moves into profitability that type of thing won't be necessary.
Related parties returning shares to help offset note conversions is not the behavior indicative of significant future dilution. I think we end up with a 500mm A/S and somewhere around 320mm O/S which will remain stable as revenue starts flowing.