No, I am not saying either of those things, there are other methodologies and vehicles that can be used, however this is very common practice for this scenario.
A lot of people think that a company can just issue shares for any reason, just call there TA and say, hey issue me 10m shares of my stock and send it to this brokerage house for them to sell, but that is simply not the case, there has to be some form of debt in order for shares to be issued, some companies will create debt wraps for example to be issued against shares they wish to sell. Equally you can only issue a certain percentage of the A/S at any point in time.
Although we see dilution from companies on a daily basis, there are still rules as to how those shares are issued.
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