It appears that way, and why would they dilute if they are about to release "huge merger" news? Why wouldn't they dilute after the news when the price is much higher?
You're right. Company is diluting. They intend to dilute all shares they have to reach 500 mill AS, imo. Need money for financials and merger. Should have bid at 2 but who knew? I guess my 3s are pretty good, as long as merger takes place.