I'm not saying that there won't be dilution. It would be foolish to do so since every time shares are sold there is dilution. What I am saying is that because of the 9.9% limitation, the investor is currently not required to purchase any more than approximately 23 million shares (assuming that CPOW chooses to sell that many) and because of other restrictions spelled out in the agreement, the size of each offering is limited as well. I don't see any reason to assume that CPOW will even come close to doubling their O/S based on the terms of this agreement. Since CPOW knows they are limited in the amount of shares the investor is required to purchase, it is in their best interest to dilute only when necessary and when current share price will get them the most bang for their buck. Also, as I pointed out in antoher post, the terms governing the dilution price are extremely favorable to shareholders in my opinion.
The $30 million cap only spells out the maximum committment in dollar terms by the investor but doesn't indicate at what price those shares will be sold at. Given the time span of the agreement (30 - 36 months) a lot can happen to the share price of CPOW (I'm betting that it will be markedly higher than the .10 - .12 it' trading at now), thereby limiting the potential dilution even further. I think you're scenario of the O/S almost doubling is highly unlikely.
Also, you could argue that CPOW is currently overvalued, but another way to look at it is that the sales agreement they have is already being factored in to the share price (which makes sense since they leasing new production space to keep up with demand). If the agreement with the Chinese company comes to fruition, that should enhance CPOW's perceived value further.
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