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Message: Collateral for 6M unrestricted shares?

This is interesting to digest "the Borrower will provide Debentures in the principal amount of $1.2 million to Mr. McAuley as collateral for 6,000,000 unrestricted Shares to be lent by Mr. McAuley to the Borrower."

What is this person going to do with 6M shares to be returned at the end of the agreement?  Could this person sell these shares?  Could this person short these shares?  Could this person let others borrow these shares so they could short it?

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