I am not quite sure why you are fighting this particular battle.
It's the safer assumption that they will spend it. Otherwise, they'd likely have left it on the shelf.
It isn't even necessarily a bad thing if they do. I am presuming it would mean that whatever it is they wish to spend the money on, they expect to generate a return which makes it worthwhile.
You don't need to be a short to believe this. You can form this opinion independent of ownership. And no amount of claims via the crack pipe or from the unsafe harbour would persuade me that the company intends something different: as they say, actions speak louder.
They are set up for a sale of stock. It is not unreasonable to expect them to sell it.
I make no comment on the nuances of the rest of the conversation re dilution.
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