Very briefly. If warrants and shorting prior to a placement were not available, then raising money for a company like Poet has been for almost its entire existence would be a lot more expensive. 

The sharks that invested in the world's worst securities offeing 5 1/2 years ago, were doing nothing more than making a short term loan with big up front profit plus long term speculative value. Subsequent offerings have been much better. Oh, since TM came aboard.