He won't cash out because he's in the red, not a good enough reason since one should be able to know when to take a loss.
Pay no mind to the ramblings, if he's got 40M tied up in a penny stock (allegedly 700M shares he wants to sell at .055) then either he's completely full of it or he better be trading with 10MM in liquid assets as ordinarily you wouldn't want more than 1 percent of your port. in these types of gambles.