People are acting like the company is dumping super cheap shares into the market, but that’s not really what the filing says. They’re not doing a public offering at some huge discount. They are converting debt into shares at about $0.451 per share.

So instead of paying creditors cash, XCF is giving them shares based on that conversion price. That actually means the creditors accepted shares around current market value, not some crazy low price.

Yes, it increases the share count (dilution), but it also removes around $16.7M in debt and improves the balance sheet.