It's been so long the practice of toxic financing has faded far back into my memory bank. This kind of financing, if one can call it that, is what I call a deal made with the devil. It results in dilution of the public float to a point that in order for the share price to appreciate it would require an incredible amount of demand on the part of retail accounts. That almost never happens.
The company may remain "in business" but then the capital is eventually used up, and another financing is necessary.
This could -- and does -- continue to a point where five years ago the public float was only a few million shares and now it's 500 million shares.
As for the typical retail investors, they have a better chance of making money matching for nickels on the front steps of a Baptist church.