Ann: Trading Halt, page-33

If CEO want to give away presents to some new investors (= friends ), they can easily just raise annually (I guess maximum of 15% of current capital amount) with high discounted price without shareholder approval. For ROSS, I hope he is not interested to do this as he got 5% of KCN.... but he might force, if the health of KCN is not that good.

Or If ROSS want to test the existing shareholder confidence, they can use the subscription method to allow each 5 shares of existing holding to subscribe 1 shares @ less discounted price. All loyal existing shareholder ( with confidence) will fully subscribe their entitlement and then get no dilution. Some scared holders will not take it and get diluted.

It is also a tactics to get the high price for the capital raising. Some of them might get advantage by oversubscribe. It is only valid if you have inside information about the health of KCN.

Anyway, try your luck....