The dilution is caused by the conversion of debt to equity. If the loan was issued using non-convertible debt then the bank balance would be run down (even negative for a couple of months).
From an equity perspective one needs to consider what happens once the contract is announced -- basically does MWWC plan to repurchase oustanding shares to reduce the share count. Management can be up front about that in advance (how many shares will be retired and the price band).