Dilution is almost always viewed as a negative thing for an investment and in most cases, that holds true, however, like most things in the stock market, the truth behind this strategy is a little more complex.
The most obvious reason for issuing more shares is to raise funds. However, a company may issue new shares for other reasons such as executive compensation or for better reasons. Imagine having to have to get shareholder approval every time BioRestorative wanted to do a capital raise! This makes that tedium unnecessary and keeps the decision independent of the shareholders! Flexibility and the ability to act swiftly when opportunity presents itself are the keys for a company in this position! With Treasury stock of this order, the flexibility is enormous. Dilution Somlution!
It's an efficient way for a company emerging from bankruptcy to generate funds and raise capital.
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