This is a great way to raise capital, without taking on debt. I don't see how anyone could paint it negatively. And all companies in a growth stage such as this one need to raise capital. That is just common sense, unless you want a stagnant company with no growth! I'm sure there will be the usual crowd of bashers, etc. that paint that in negative light. I think it is a good idea and dilution will be minimal in the grand scheme of things. As you point out it will be over time and not all at once, over a 5 year period. That, and warrants being exercised, will give the company additional capital.

The important thing is not taking on debt, although taking on non-toxic debt is ok as far as I'm concerned too. Anyway, I can already envision the negative spin on this (dilution, etc etc). It is a very good thing in my opinion and necessary for the company to continue bringing on new talent, innovating, expanding product lines, advertising,etc.