On4 Communications Inc (ONCI)

[shotsky]

Any time the OS grows, it is dilution. Dilution simply means your owned percentage of the company is smaller. So, yes it is absolutely dilution.
Now it is ALSO an offering of shares from the AS, which means they are new shares that have not been sold. And, remember, SB turned in 1.4B shares of his own, and now a third of those are being sold out of the treasury to raise working capital. Nothing wrong with that, it's a good business plan.