When a company goes public, they have to set a total number of shares to be issued. They can limit the number sold in an offering, which appears to be what they are doing. The remaining shares are held in reserve and can be sold at a later date.
The restrictions on trading are unusual and I can't find if they filed this sale with the SEC. That could be big trouble down the road.
Remember one unassailable statistic, as explained by the late, great George Carlin: "Just think of how stupid the average person is, and then realize half of them are even stupider!"
"I would like to die on Mars, just not on impact." Elon Musk