Arafura Rare Earths Ltd, page-1169

Simple if they are shorting and short the stock. They buy in the issue to return them those they have borrowed from. it also sets them up to do it again. One of the premises of them shorting the stock would have been that the company would need more capital so would have to raise funds at a lower price. In effect, they got that right and gain the benefit. At our (longs) expense.

They would also want to because if indeed we finalise financing they would not want to be short then as it would cause the SP to jump and result in what's called a short squeeze everyone chasing stock at a higher price and having to buy it back. the reason they would not do it in the market is that their holdings are liekly big enough especially together to move the price up significantly.

All IMVHO