I think your timeline leaves out the key "factoid" that an indictment had already been published naming Shkreli, on Monday 12/14 -- before the equity deal closed.
12/3- KBIO enters into Securities Purchase Agreement - S-1 due within 60 days etc. ** 12/3 KBIO offers options to Armistice Capital ** 12/14 -- Federal court docket publishes "Sealed Indictment" vs. Shkreli 12/15 - KBIO Securities Purchase Agreement amendment #1
12/16 - KBIO Purchase Agreement consummated via 350,224 exempt shares (@ $29.32 per share) issued.
12/17 - Shkreli arrested @ 6:30 AM 12/17 - KBIO halted shortly before 7 AM 12/17 - Shkreli terminated.