Institutional investors would pay attention to the fully diluted basis and so are not a factor - they'll know better than to buy into this.
Here is what retail doesn't reallize, but the Oravecs and Fidlers of the world understand very well: When you have the ability to create a virtually unlimited number of shares at essentially a zero value basis, you have absolutely nocareintheworld where the stock actually ticks at!
If there's $1,000 on the bid you can take it out with 500 shares, next week with 1,000 shares, next week with 10,000 shares, next week with 100,000 shares. See what I'm saying? That's why these OTC dilution scams so consistently end up burning their investors and making money disappear.