Yes, it was clearly a distressed financing, but the interesting thing is that both sides expect something to happen very soon, but clearly neither side has a good idea of when.
The shorts went in wanting to protect their downside if positive catalysts were announced. NWBO essentially put a 60 day expiration on that downside protection. At this point it would be in NWBO's and shareholders best interest to let the options expire before announcing anything (less dilution and less shares to obvious shorts). But again, it is clear that both sides expect something big to happen soon and they do not think that it is going to be a negative catalyst.