Z-Axis....Most OTCBB companies don't have a lot of choice in terms of how they get their financing. Toxic agreements and selling shares often times are the only options.
If he was selling the shares now then it would be something to worry about but if he is in it for the long term and expecting growth in value of the stock then his shares can be worth more then what they were even with the dilution in place... It's all apart of investing. jmo