Wrong--
Think of it this way, The CEO is using your money to give someone a 90% discounted deal. Don't you want to know why and to whom?
There was no IPO---this company did not bring one cent into their coffers from the general public until this PP.
This PP was made to "accredited Investors"---most likely investors that know this company and the scientists that started it---friends, perhaps,,,and I doubt that they will damage the company by "dumping" their shares--
cheers