That's easy, It's called a CNXS P&D. A story to inflate prices in order to dump shares on the unaware traders who either don't perform DD and/or think regulatory agencies will protect them from scams.
Dilution is never a good thing for the common share holders.... EVER! Dilution does tend to occur when PPS rises as, why wouldn't the person creating the dilution want to make more money?
If you look at PPS and dilution as two separate things, you can still make $$, but dilution is never a good thing....