Yeah, the order limits insiders to a 25% participation. I guess the other 75% goes to friends, family, and concubines?
I googled to see the prevalence of these types of financings. There's certainly been a few and IMO there doesn't appear to be a lot of pedigree among them. Mostly people and companies I've never heard of. And I see there are ones even worse out there than being proposed here. Take a look at this one --- a half penny private placement --- 100 million shares dilution for a lowly half million dollars.
NEW GUINEA GOLD CLOSES PRIVATE PLACEMENT