Doubt it sloppy, doubt it. The full dilution was priced in and then this thing was discounted extra when it was priced at $.55, even if the full 1B shares were issued at that price it was still valued below its peers. Heck, it was valued below some real basket cases that may not survive at all.
But who knows how many shares they may end up issuing, I myself think that anything more than a 400M share company would not make sense, and it could end up being that level.
If you are short chew on that awhile. Maybe you will wake up and realize that shorting a sub $3 stock like this makes no sense, especially when you are betting against fundamental value.
Besides, the market has had a whole lot of time to figure it all out, its price action says that these shares even with dilution are not valueless.