Here are the restrictions:

1) Maximum allowable aggregate proceeds for a PP under 5 cts is $500K

2) No Payments to Related Parties: With the exception of the Excluded Amount, none of the proceeds of the Private Placement may be used to compensate, settle indebtedness with or otherwise satisfy obligations to Related Parties of the Issuer.

(Bard owes EB and his consulting firm plenty of money)  

Again, debating this idea of yours on this anonymous Board does not change a thing. Have you run it by EB? and if Yes than what was his reply?