Nicholas activates the "Quann" system.
He then moves the Dreadnought from the adjacent system and the 2 Cruisers from his Home System into the activated system.
An interesting situation arises. Steve has a PDS sitting on Mecatol Rex, which is an adjacent system. And he has the Deep Space Cannon technology, which allows him to fire at fleets in an adjacent system using his PDS.
Now there was a Diplomacy Strategy Card played earlier this round which prohibits activating a system containing units belonging to the other player. This restriction works against Steve in this case because his PDS could have fired upon the arriving fleet in the neighboring system.
It's Steve's turn.