I'm sensing some level of hysteria coming off that other board. Were the company to divert shares to a use not expressed in the stated purpose for the most recent financing, the BOD would find themselves in a lot of Federal hot water, to put it mildly.

...crowd psychology being employed over there, and it seems to be working on those most subject to being swayed. Some will profit by it. ...reminds me of "The Extraordinary Popular Delusions and the Madness Madness of Crowds".

If you can get ahead of the crowd and steer them, you win.