"Notice how no one seems to object to it except general shareholders."
Because no one is hurt but the general shareholders. All of the insiders are getting plenty of compensation. When the dilution happens they will simply issue themselves more shares, bonuses, and larger salaries.
My take is that they are positioning themselves to get moderately rich if nothing happens and extremely rich if/when some contracts come in. Or a takeover happens.
I'm gambling that they will be motivated to be extremely rich and we little guys might see some gains.
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