tkc, fwiw,
If indeed the placement has been shorted/covered/disposed, then at least in theory, the effects of dilution have been absorbed. The alternative, that a significant amount of the placement is long (in the participants hands) then that would to me represent an overhang. Were it I, I would want to lose those shares and sit on the warrants. It may well be a mixture, in which case I would expect a capping of any sexy news spike while placement participants clear out their exposure.
totally random OT musing: I do most of my speculation in biotech, and a holding of mine (NVAX) recently did a somewhat unexpected placement of more than 10% outstanding at a discount similar to WAVX (should one call it a discount, above comparatively recent prices but sig % below very recent). Placement was at $4 when the SP was $5. It raised $100m, but they had $100m in the bank - hence the somewhat unexpected nature. in this case the SP fell to 4.15 and is now at 4.60ish. Point is in this case it seems the placement may well have been a bit underpriced. (although there are no warrants). NVAX is a classic developmental biotech (no product, massive expenses, all sorts of upside) but with a twist. The gov funds a significant component of their R&D (a BARDA agreement, many tens of millions$ that they book as revenue) - basically their platform may well be the best for rapid response to a nasty pandemic, they are a vaccine developer, so the gov chucks money their way. A very similar scenario played out in BCRX. Apparently I am basically a monkey who follows anything with an "X" in the ticker.
The above content is my opinion.
