On4 Communications Inc (ONCI)

[shotsky]

Of course it is dilution. Any time the OS grows, it is dilution (you own less of the company.). They are selling half a billion shares to raise some cash. (450,000,000 X .0024 = $1,080,000) The offering is above current share value, so they must expect the share price to increase to that point or above.
Even though it is dilution, it is not a dump of shares at next to nothing to pay off a loan.