Ian, typically people will short the stock in the days leading up to a deal like this. They then cover their short with the shares they they are given in the financing.

So Fung releases the JV news, we pop to $1, investors in the deal short the stock and then cover a few weeks later at .50 when the deal closes. They double their money and have their warrants as a bonus. Investors want profits with no risk. This type of move guarantees them profits with no risk.