1) this is a legitimate company that needs capital to grow. The current A/S is not enough to generate revenue so they would need to add more shares to raise funds.
2) they are a p&d and will increase shares to make money and run.
Either way more shares are coming. At lest with option 1 there is a chance that the pps will hold up to some degree it i doubt it.
If they are trying to grow/establish the business, they will dilute to help grow it, then r/s so they can then go to the big board.
Either way, I don't see how current shareholders are going to not get shafted.