Whoa there people. The warrants were at 5 cents, not $0.005. You're putting the decimal in the wrong place. If I could buy 10 million shares for $50,000, I'd be dancing a drunken jig in the parking lot right now.

Those 10m shares cost $500k. The million that were sold may or may not have been related. Perhaps they were in a different trading account that he was trying to tidy up. Perhaps he only had access to $420k and he wanted to exercise all the warrants, so he sold a million of his existing shares at 8 cents to come up with the funds to complete the warrants purchase. Or I could think of half a dozen other similar reasons.