That's one hell of a document, I read some, scanned some, ignored some and got all the way to the end where the mythical person offering up the 50 million bucks, apparently doesn't exist.
Must be a work in progress
Edit; It appears I ignored the one part where a name came up. Thanks dragon lady
If he used dilution, he would have approximately doubled the current OS count. The optics on that would have been terrible along with the massive share price drop due to dilution.
They clearly are short on cash and were afraid that the dilution would start a downfall they couldn't stop and would get them below $1 again.