That doesn't make sense to me. Even though the institutional investors were vetted by Rory, they could sell some or all of their shares to buy warrants but why? Why wouldn't they just keep their shares and buy warrants? As long as the stock is below the warrant strike price, wouldn't it make sense to hold onto their shares since it would eventually cost more to buy shares from the warrants down the road? I could be wrong (and it wouldn't be the first time).