No, this will not be hitting the market, the O/S hits the market, currently 249 million, nothing points to a dump of 1.25 Billion shares. The CD holders have an agreeement with Raley to hold onto their shares, they benefit waiting for the share price to rise, that is IF they choose to convert their debt to shares, it's not a definate, they may just take cash, which from the additional revenue derived from the Cavier Wells and possibility of conventional financing, could become a reality, means no shares from the A/S increase goes anywhere, the company holds them.
As for the .0001 par value of shares, thats boilerplate wording and you'll see it in just about every company financial around. Very few companies have a par value different than .001, doesn't matter if it's opn the Pink, OTCBB, NASDAQ, NYMEX, or DOW or any other exchange. It's just meaning less language these days.