If I understand correctly (and that's a big IF), George loaned the company $100k at 17% interest. In the transaction that just transpired, the company repaid that $100k, either in the form of 90M shares of stock or George used the money to buy 90M shares. Either way, the company benefits by getting that loan off the books, and George demonstrates a vote of confidence in the company by acquiring the shares. I view it as a positive move.