This is a stupid move even if you intend to raise money as a scam. What you are asking is for people to purchase your shares knowing that the pending dilution on a very large scale will drive the price to your offering price and less once again. So dead money for a year and then it will obviously be a reverse split candidate.
If I were to scam my shareholders it would be much more logical to allow it to gain some traction off of the earnings picture and then reverse split by a large enough amount to attenuate existing retails ability to influence the price much further. Let it settle out then go for the next round of fund raising as the primary seller and ease shares into the market at a controlled pace over the following year to maximize the fund raising.
So if you want to give away shares to friends and family like candy it is much less effective in the scenario that is taking shape. Now they will have to compete with the full on effect of retail cutting their losses until once again the price is at the level at which they can no longer raise funds. So they want to raise funds, shareholders are bailing and their family and friends holding large amounts are trying to cash in. This could happen so quickly that they may raise very little money at all. The viability of the share structure to raise capital will be dead to them because traders have many much, much better options available in this market and will know the nature of the company's principle players.
This Sht should not be legal even in this scammy segment of the trading world. There should be some very basic expectation that a company's fiduciary duty to shareholders is to make at least a feigned attempt to increase shareholder value instead of so transparently mugging them.
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