For every $1 in financing, Auctus gets warrants to buy 3000 shares. If the share price is then 0.01, they can sell those shares for $30. Yes, they’re glad to destroy their $3M in toxic debt shares.
The strike price of the warrants is $0.0005 and $0.0010. Still a handsome profit right now, and there's a cashless exercise formula in the warrants. They'll do just fine.