The wisdom behind the common play of being short a stock but long on the warrants makes a lot of sense....especially when its a stock like RVX if you think (as many here seem to think) that the shares could ultimately be worth $10 maybe $20....who knows, maybe $50.

Imagine being short a 200K shares at say $1.50.....but thinking they could be worth $20 at some point.  And as I've pointed out many times, when covering off a short position you can't replace your IOU with another IOU....you have to buy shares with actual cert #'s attached to them.  If all that is trading is a bunch of IOUs (shorted shares) then you could be in for a world of hurt.

At $20 versus $1.50 as the spread between the price at which a short position opened and then closed....those 200K shares would cost  $3.7 million to cover at $20.  Much better to have warrants convertible at $2.05, even if you had to pay a hefty premium to get them.