It's not dilution yet, only when they buy those sharesshares cost $0.32 so if Andy W. wants to buy shares then it will be dilution. He still have to pay $0.32
But if Namaste wants to pay him his salary they would have to sell shares for $0.21 so it's not that bad or I would say this is very good solution.
Keep in mind if they have shares they will want stock price go up.