I don't mind the deal as it's structured to give us access to...

 I don't mind the deal as it's structured to give us access to assets we'd otherwise have to pay cash to use. By offering $250k of stock at a 10% premium to the price its really costing us $225k.

If it's turns out to be profitable then shareholders get to keep the first $500k of profits, which is a return in excess of 100%. 

If its not profitable then yes, we've diluted the share pool instead of what we would otherwise have lost in cash had we paid for the royalty outright.

With Atari as a stockholder and looking for a profit share at some point then you'd hope they will be busting their guts to make this partnership a success.

The rest of us retail holders have just flicked a bit of cash into the hat and hoping management can make it grow without input from us.