Company lends stock to bank. Bank shorts stock to company's CEO. Any Questions?

Interesting article I saw on Bloomberg.

Biotech company

"Intrexon was able to take its CEO’s $100 million investment and turn it into $200 million: Instead of just selling the CEO $100 million of stock for $100 million, it used the CEO’s willingness to buy $100 million of stock to create borrow for a $200 million convertible."
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