Good point indeed. But one thing, diluted EPS means something different.
Diluted EPS is taking into account all conversion scenarios where convertible securities were exercised. That would cover outstanding convertible preferred shares, convertible debentures, stock options, etc. Mind you they put restrictions on the preferred shares for I think three years, so we are covered there. Also the convertible debt is gone...i think.
About the TA being gagged. Its suspended,not gagged, last time this happened there were a lot of people screaming fire in the threatre. But in the end the company didnt do any dilution. Lets wait and see how this plays out. They probably just forgot to pay the bill. LOL