It's true that paying off the loan out of current cash flow (not, I believe, by new borrowing) dilutes the stock. However, I would rather have the stock diluted (in the latest transaction by about 1.5%)than continue to have a loan payable at 9% interest to Laurus, a hedge fund that, from what I read in a Forbes article last month, appears to have something less than a sterling reputation in the industry.

What will make shareholders purchase the new shares is bottom-line profits, the potential for which, with all the recent announcements of partnerships with strong companies in a variety of M2M ventures, appears bright.