" Presumably the Directors & BB with their shares/options have a vested interest in minimising dilution as much as possible."
This is where the fact they didn't pay for their stock is important, they have no vested interest. They can dilute the register, consolidate and then issue themselves some more stock as they recently tried to do ... and stock is only valuable to them if they ever get the project off the ground, in the meantime the salaries keep rolling into their banks and shareholders keep getting nothing but losses
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