Oh, come on. That example is absurd.

You said that the company is currently valued at $10 million. Why would pipe investors invest at the going price when the shares will be diluted?

They wouldn't unless the story changed significantly to make them believe that the company is worth twice as much as the market believes.

Is that what you're expecting?

Maybe management can convince some investors that the company is worth more than current value, but they would still not invest at the current share price.

When have they ever?

No. Most likely they would invest at a price much lower than the current price and the price would quickly migrate there.