Investors get fleeced, and the company is up a creek without a paddle since they are obviously living beyond their budget and current cash flow.
BUT!!!
If they use the shares to improve their business in all areas including Sales, inventory, supply and distribution channels. they they have a chance of improving their cash flow and bringing their monthly bills within their improved budget.
Personaly I like my companies to maintain atleast two years of operating cash on hand. that way you don't have to borrow from the business when times get tough. But FEEL is not my company.