Richard, if the company is directly selling free trading shares into the open market to fund operations like you have stated, that is indeed illegal. However they can raise funds through an offering. If they are having someone else sell shares through an offering, that's a different story and it's absolutely pertinent that we know who is doing the selling so we can verify their reputation in performing such a task.
Regarding the TA. Our TA provides share structure numbers to shareholders over the phone as a COURTESY. They are not required to do so, and in fact, I know of very few TA's who are so cordial. If you want written proof, I suggest you call the company and ask them to direct the TA to assist you. The TA works for the company, not for us. Imo, the TA will soon grow tired of the circus and cease to provide any information whatsoever.
You say there is a lot of grey area for the issuance of stocks, although from your link it says "The rules include "minimum" performance standards". Performance standards are always minimums. You never see maximum standards, do you?