Good question. Note that they now have 9.99% ownership at the current time as per the report.

The federal securities laws require certain individuals (such as officers, directors, and those that hold more than 10% of any class of a company's securities, together we'll call, “insiders”) to report purchases, sales, and holdings of their company's securities by filing Forms 3, 4, and 5. What's a Form 3?

It becomes a balancing act for them. When the additional placement by 2 more institutional investors MMCAP will have room to increase their holdings without becoming a reporting insider.