They don't need the stock to go up in order to make money. With dilution, they can make money by selling shares at any price. If the stock goes up while they are selling, then it's an added benefit.
For instance, the company can dilute by converting their preferred stock into shares.. here's a snippet from one of VCPS' 10Q's showing the dilutive properties of each class of preferred stock that they own:
If you read the description for the Series B preferred stock, the company can convert their preferred B stock into common shares at a 50% discount of the current price of VCPS. Even if VCPS is stuck at 0.0001, the company can still convert and sell shares for 100% profit.
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