Again, ye speak wrongly, Hairy.
Securities law requires that share issuance transactions be objectively fair to all shareholders and classes of shares. This applies for both PRIVATE and PUBLIC companies that issue stock.
Typically, a FAIRNESS OPINION is involved, which is usually done by an outside accounting appraisal of the value of the company and the market conditions for the offering.
Please do a little Googling on "fairness opinion securities" and you will find out that a CEO who sells discounted shares to one party on a whim is liable to shareholder lawsuits for the transaction - unless it can be shown to have been an objectively fair transaction - such as by a fairness opinion.
Check the dates on the various stock sales from CDEx and the prices for the sales. I think you will conclude that a fairness opinion would be .. ahem .... very difficult to obtain for Dawn's 10 Centers.