Icon Media Holdings Inc (ICNM)

[Jayman5000]

You are mistaking selling for dilution.

Adding shares to the OS is dilution whether or not the shares are sold. Every shareholder now owns a smaller percentage of the company - their ownership has been "diluted".

Yes, even if the additional new shares are Restricted. Doesn't matter - everyone's holding has now been diluted.

The act of selling is often confused as dilution because they are closely related when lenders convert debt into shares and sell them right away. The selling is not the actual dilution though, the conversion is the dilution - adding more shares to the OS. So whether they sell or not, dilution has occurred.

It's a common mistake, thinking that there has to be selling for dilution to have occurred, but it doesn't.

https://www.investopedia.com/articles/stocks/11/dangers-of-stock-dilution.asp

What Is Share Dilution?
Share dilution happens when a company issues additional stock. Therefore, shareholders' ownership in the company is reduced, or diluted when these new shares are issued.

Assume a small business has 10 shareholders and that each shareholder owns one share, or 10%, of the company. If investors receive voting rights for company decisions based on share ownership, then each one would have 10% control.

Suppose the company then issues 10 new shares and a single investor buys them all. There are now 20 total shares outstanding and the new investor owns 50% of the company. Meanwhile, each original investor now owns just 5% of the company—one share out of 20 outstanding—because their ownership has been diluted by the new shares.

Notice that there is no mention of the new investor selling - just the additional shares issued means dilution. It does not matter if the new shares are immediately sold on the open market or not.