Yes, agreed. It is clear that all the negative ran

Yes, agreed. It is clear that all the negative rants pounding the table about the dilution miss one very important aspect of dilution, and that is what the proceeds can do to help the fundamentals of the business! They also rant about the selling of preferreds and the conversion into common shares, causing dilution. But never is it mentioned or discussed what the proceeds from dilution can do to change the time horizon for the business plan in getting to the promised land of profitability. They only focus on the negative aspects of dilution, in terms of how it decreases the value of each share held by long term investors. The other main point you brought up was valid as well, which is that the dilution was not actually very substantial. At the end of last year the OS was at about 700M and now halfway through this incredible year of growth and expansion for RFMK, the OS is now nearly 1B with about 100M of the increase in restricted stock which typically is restricted and locked up for one full year, so effectively the total shares in the company have only been diluted with about 200M shares, when compared to last years end count, that is only about 1/4th of a dilutive effect. However many micro cap start up companies just starting to sell a product but also have expenses dilute by at least 50% and sometimes over 100% per year!

Just look at what they did with this rather small level of dilution. Management established an office location for sales and distribution as well as an accounting system to support massive online webstore sales of the CannaCig. They ordered 2,000 units of CannaCigs and made design improvements for a better product. They created a new webstore store Vinhaler.com. Just speculation but its possible they are using some of the capital proceeds for auditing and moving to the OTCBB which costs a lot of money as we all know. All of these positive fundamental moves change the situation for RFMK so that profitability is just around the corner instead of years away. In the end, the dilution actually helps bring value to shareholders albeit with some near term pain of lessening per share value. Lets look at some estimates with dilution and without dilution.

Without dilution : 2k units cost $60k, profits $100k, purchasing power to buy more units = 3k units, 3k units cost $100k, profits $150k, purchasing power to buy more units = 5k units... etc

This means that the company would have had to start with a couple of hundred of units and sell and order more many times before even achieving the $60k needed for the 2k unit order, this would have equated to months upon months of iterative business development. Instead they diluted a bit and jump start the process with the 2k unit order. Additionally, the rate of growth per iteration through the business production/development cycle is rather slow, probably needing at most two iterations per quarter in order to have funds to grow to the larger order sizes using profits from the last batch to order more units.

With dilution : 2k units cost $60k, profits $100k, however now, with some dilution, proceeds can pay for audits, uplisting, marketing, etc so the paid in capital by shareholders increases exponentially because the stock is highly visible and the company can get a hold of long term growth funding and be properly capitalized which means hundreds of thousands if not millions of dollars toward purchasing more units, this means purchasing power for to buy more units is no longer only $100k but more like $1M !! We can assume say the quarter thereafter we see orders of 20k units not 3k units, a 10-fold increase qtr over qtr which would have a much much faster growth path for the company on an annual basis.

This is what dilution can do if done properly and this is what many forget and do not discuss. The point here is that with a little bit of dilution, not to much but not too little, the company can fast track itself for massive growth and for long term holders it pays off with higher ROIs once the company is pulling in serious revenues each quarter which draws in more investors at higher valuations so the share price sky rockets on an annual basis.

GLTA!

RFMK!