HH is doing to VSTA what he did to GreenSafe. Making false/empty promises to a CEO that funding will arrive. We've seen this movie before, and know how it ends. In both cases, the terms/method of investment should have been a red flag that BGMO was not a serious investor. HH bought off on the stories without knowledge of the business space or due diligence on technology and IP that every VC would do. He offered sweetheart terms that did not reflect market conditions or reality. In both cases, he committed too much money with evidence of commercial viability.
One can only imagine what goes on in the mind of a psychopath like HH to make promises he knows he can't fulfill. One possibility is that he hopes to get a free option -- commit to buy VSTA shares at $0.50 and hope the share price rallies, and he can borrow against the shares to fund their purchase. Similar to the deal he did with ICG when he disposed of most of his BGMO shares in 2009/2010.