564 million is a post-merger number.
The October 10K lists a "pre-merger" number of 964,000,000 share O/S.
The post-merger PR from 10.04.07 testifies that 400,000,000 shares were retired and cancelled.
Cancelling shares in the O/S to reduce the O/S is the opposite of dilution.
And that's the part that snookered the shorts.
I know you're just trying to help people make a good decision, Down, but once you "get the picture", I'm sure you will appreciate the brilliance of the sting perpetrated upon MMs, shorts and bashers.