Heck, even if the 504s paid 1c per share, if they bought 20mm tomorrow and then sold them same day the PPS would drop simply from the increase in supply. Right?
They 504 buyers don't have to sell the shares right away, but if 50mm 504 shares were sold this past quarter I have no doubt this would have exerted downward pressure on the price.
But we've had the much dilution before and the PPS has stayed flat or increased.
The problem is the combination of dilution+pessimism+manipulation.
As Solar observed, 2 of the 3 can change quickly. Pessimism can turn to optimism, and the manipulators might decide their bread is buttered on the side of moving the PPS up.