Medical Marijuana Inc (MJNA)

[Labradorite]

Exactly.
It's a LoC not an exchange. The shares haven't been sold to the lending company, they are just there as collateral.
I'm not sure we know for a fact that that is what the shares were created for (do we?) but if that speculation is accurate then it's not dilution until the shares are sold. Which wouldn't happen unless MJNA defaulted on money borrowed from the LoC.