Insiders understand that things are not turning around and that there appears to be no savior to fix the problem. The last time an insider sold stock and the shares of this magnitude, the stock fell over 50% in the next few months. This will likely hit 52 week lows again.
The point is that large shareholders believe so little in the company that they will do whatever is needed to get rid of their shares. It means that smart companies who have better analysis than any of us do have decided against the companies future.
I would actually be fine with the company raising money but when insiders sell, it is typically a very bad sign.