The easy answer Alpha, the real answer is.
The noteholder/shareholders chose to exercise warrants.
Wasn't like WDDD chose to dilute, the warrants chose to exercise their options.
So WDDD wasn't trying to raise money, but simply the deal from earlier those guys chose to buy more....and there wasn't enough shares out to fill that.
They didn't sell the entire MRMD stake as they are not trying to kill that share price, their plan is/was to sell into market over time to not cause a steep decline.