Dilution, which is the conversion of unpaid loans to shares is not affected by OTC status. OTC statuses are simply an OTC designation, and in no way affected by finra or the SEC.
If they don't pay their loans, those loans will convert. There are OTHER things that they can't do, but dilution through delinquent loans is not one of them. One company borrows money, doesn't pay it back in cash plus interest, but pays with stock at a rock bottom price...happens all the time. That is virtually the business model in the pinkies.
All anyone has to do is go look at a few stinky pinkies to see that - they dilute over and over and over, for years. BVTK JUST got current, but they have diluted billions of shares in the last 4 months before they got current.
So, they can convert loans (it isn't actually their choice anyway - the lenders force their hand), they can increase the AS (by changing the articles of incorporation in their state), and they can reverse split (which does take Finra approval, but it doesn't matter if they are delinquent or not.)
Now you know - you can take 'Can not dilute' off your list.
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