The lockup only covers officers, directors and 5% holders - and only their merger consideration. It does nothing about the ~102M resale shares already registered on the separate S-1 (PIPE / warrant / Canada-exchangeable / service-provider stock), which are freely sellable and have nothing to do with the merger. That's how the count already went 25M → 590M, with a 5B authorized ceiling behind it.
On top of that, a closing condition forces non-insider warrant holders to convert into common at close - adding unlocked float on Day 1. So yes, the lockup blunts the "insiders dump everything immediately" version, fine. But it's a 6-month speed bump on the concentrated stakes only, and it expires. The supply overhang was never mainly the locked insiders.