Intellipharmaceutics International Inc. (IPCI)

[wimike]

blue...the stock price would go down proportionately.

4 million shares @ $6 = 24 million market cap.

You can not create more market cap by issuing more shares at that point. There has to be a catalyst, surprise in earnings, a partnership.
No one would give you $6 share of newly issued stock since the company is only worth 24 million market cap.That is the reason why every time there is an offering (dilution) the price drops proportionately.

7 million shares of the same company with no changes would still be worth 24 mil market cap. about $3.43/share No one would buy the 3 million shares for $6 why should they?

100 mil shares would still be 24 mil market cap.