They are buying used equipment originally costing $900k for $3.5M. I know that this is simply a paper deal to "merge" the companies and acqure the revenue stream, but maybe that is a bit much, especially considering the other payments that will be made.

They will be giving out 17M shares for the equipment, 20M shares as signing bonuses, and 17M shares as "bonuses" to PQ, et al. With 40M shares post split, that will be more than doubling the number of shares. True, they will be cancelling options for 86M shares, but that is pre split, so really only 8.6M shares post split. The cancelled share options will more than be made up by the free shares being handed out.

Changes in the BOD (adding members from the gaming company) will be considered for the next shareholder meeting. So much for immediate changes- I guess the Qs remain on the board. Remind me again what DQ's qualifications are and what she does?

Even though they will be reducing the number of shares by a factor of 10, they still want to raise the number of authorized shares to 1 billion. That's a potential further dilution of 10 to 1 added to the 2.5 dilution from the new shares, for a potential total dilution of 25:1.