Brigar - you seem to be confusing several issues.
They never purchased a new building. They switched suppliers. The previous one provided limited capacity, did not provide priority to HJOE, and had a much higher cost structure. The new contract producer has sufficient capacity since they were already tooled to run 5HR. Their costs were lower as that equipment/capacity was not being fully utilizedwhich provided more attractive termsfor the customet (HJOE).
Capital is a separate issue. They had $1MM committed by a private investor of which $200-300 has come thru per the filings. This capital would have provided the upfront cost to run product. On contract beverage filling - the customer pays up front for all runs and tooling. If the cash isn't there - they don't get product filled (there is no credit or terms when you are cash strapped). The switch to the new facility should habe happened regardless but the assumption was the remaining capital would have provided the money for production runs.
To date - we don't know if any more money came in or where there production stands. We know customers are not getting product and its backordered. However, that doesn't mean they aren't making product. They may be allocating productionto recently signed agreements and filling in here and there with existing customers. That isnt abnormal when building a brand.
Assuming the backorders and demand are real and the private, non-dilutive capital isn't coming - we will see dilution in 4Q13 to raise production capital as the company simply won't habe a choice. That is a completely separate issue between the company making it and shareholders making it. If there is another 5-10:1 dilution - shareholders that got in above $0.15-0.20 simply won't see a return or an attractive return. It would take the stock trading in the $5-10 range for them to break even. That would put market cap (assuming no buyback prior) at $2.5-5BB ( assuming dilution takes shares from 122MM to 500MM). That is whrre the Marathon argument loses steam. Doesnt really do good to cross the finish line in a wheelchair being pushed by someone else.
That is why the 3Q results and mgmt comments are critical. Those will directly impact the amount of future dilution