Firstly - you are correct.. But it wasn't a big one either
Secondly, if YOU had a billion dollars (the key implication in your argument is what YOU would do). You assume that someone with a billion dollars would do just as Frogg does. That is a falacious argument. I understand your point when it comes to large amounts of money, but your premises and conclusion are purely speculative. Maybe an investors (or group of investors) are finished working/retired so have no reason to start a company (like you suggest).
Thirdly, I understand your point, but I am not entirely sure that the investments in preferred shares are limited to one person.
Lastly, do you have proof that they are diluting their stock AS OF TODAY?
For the sake of argument, let's say that the preferred shares that were bought were much less than 1 billion? I ask you, why would anyone spend $1 on preferred shares in the first place? My guess is that they have confidence in what HCPC does.