As stated, what they are attempting to do is insanity. It is not illegal to tell people your plan. They have announced their plan to offer shares. That is all. They have not offered shares.

Correct, they will not be able to do this as there is a plethora of reasons why they cannot.

Why they offered this? They are ignorant children under the age of 27 trying to run a business who have heard various solutions that various companies have had in the past to deal with various problems and they shouted this out to everyone real fast.
They have not done ANY research at all into this matter, clearly.
The other possibility is that they simply came up with a real scam and this is it.
The third option and the absolute least likely, is that they will actually go through all the work to make the company a legitimate publicly traded company. (RoFLMAO HAHAHA WTF LOL)

As far as your contract and order goes you can view it this way
They have not violated their contract yet by trying to add things to it (shares)
If you paid in full (and my god I am so sorry for you if you did) after they announced the share plan, then you are entitled to a full refund when you are not given shares in the company by the time batch 1 ships.
If you paid in full BEFORE they announced the plan for shares, then you are out of luck all together.

Again, not a lawyer here, just the most logical person I know.