Dilution is a term that needs to be explained. Dilution in the bad sense that seems to be overused is that the company is selling common shares into the open market. That expands the float and the O/S. Using restricted common shares(usually restricted for a year) as a security for invetment money is ok. Yes it does increase the O/S but not the float. Plus the money allows the company to grow and expand. Companies have been doing this for a longtime
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