basically. and while long term investors loathe the warrants, the fewer the warrants the lower the price would have been. I'm not sure they could have gotten anything resembling a decent price (over say 1.35) without the warrant attachment. This deal is all about the warrants to the placement investors (IMO). Some profits have likely been locked in so that is not entirely the case, and I haven't followed the options market which obviously could normally play a big role in any strategy involving a placement this size, but on glance the options market seems rather thin and illiquid for WAVX. Any notion that shorting has been used to lock in the preponderance of this placement runs into the same problem that the ATM had - WAVX was not fit to take 5m in share supply north of $2 regardless of whether that supply was the ATM or the more difficult to acquire short shares. This was a warrants deal. Wave essentially printed a ton of shares at the market, the cost of doing business being the warrants.
The above content is my opinion.