It is not as bad as it sounds. They will raise $40MM from the public offering and Al will cancel $107MM of his debt. The cancelled debt is then available to borrow again. That is $147MM in available funds.

In 53 weeks, if the share price is higher, the exercise of the new warrants will rais 2.65 * 60MM = $159MM -- enough to get them well through PDUFA and some commercialization. If the share price is still low, then the 60MM shares from the warrants are not issued.

So initially 80MM new shares with potentiall 60MM more in 53 weeks. We are still looking at somewhere in the neighborhood of a total of 400MM shares O/S after the dilution and past the PDUFA.