Not really. Had they issued 320 million shares instead of just 5 or 6 percent of that, would have set the market at 4.87. Shares were not given away either. Something in return was received. I think the market has it right and may even end the day positive.
I don't think it sets the market value @ $4.87. This was the price used to determine how many shares where going to be issued to make the value of the deal worth $100 million. The $4.87 comes from the average price of 10 days preceeding the deal date.
While the extra shares will add dilution- I am sure Dr. Frost thought it was well worth the ROI.