If we install RHN Proxy on virtual guest then RHEL physical entitlement provided by RHN Proxy subscription can be used for other RHEL host ?

Issue

• We have a RHN proxy subscription which provides RHEL Physical subscription, but we need to deploy the same on a VM.
  Will it take a flex-guest entitlement ? If yes can we use this physical entitlement for some other server or will it get wasted.