If it is to believed that it isn't convertible, then maybe not horrible with regards to dilution. Although in the end a debtor will take shares rather than nothing at all.
The company is still surviving borrowing and selling shares on the OTC. Not good for future PPS or current share holders.
Share holders hope the company somehow finds a way to stand on its own. This is a sign of the opposite.
Posters are correct. The ship is taking on water...quickly. in the end they may succeed, but current shareholders will be halved to nothing before then without serious REVS soon. Keep in mind they are also borrowing millions from Boone.