Not diluting at $0.338 when stock at $3.00 would be good too, that is simply inexcusable and led to the biggest losses to shareholders. Most of those shares haven't even been converted yet. What made it even worse is that the money the company got for selling that note was sitting in retail brokerage accounts just days before. The guys who provided the cash had $90,000~ toxic note that they dumped just days prior and at the same time as highly bullish PR from the company. They used those funds to get their current note which is worth around $8,000,000 (it was worth a lot more before the stock tanked last year), or about 8800% gains for them all from shareholders in the form of dilution.
News 
Market Data 
Discover 
