I've never witnessed continuous dilution for such an extended period of time, but I have seen companies dilute on and off for that long and longer, just not continuously.
Dilution kills PPS because the entity selling has free shares to sell at any price because, well, if you sell millions of shares at $0.02 (for example like WEST) the seller makes a nice profit regardless.
Also harder for PPS to recover being there are now more shares in the OS than prior. Simply put too much supply vs. little demand.
Companies dilute because they need money to continue operations being they are not profitable. Usually it comes from convertible debt from a loan (like Southridge among others) although companies can and do dilute directly without a loan to raise capital.
From what I read of the last report, they lost $3,400,000 or so in operational costs...not a good sign for a struggling company. Chan has his work cut out for him.
