Totally depends on the fund. And, it is usually a "guideline" rather than a hard-fast rule. If there is a company trading less than $5 that they want to invest in, they just need to make the case to management why they want to go against the "guideline". It's not a big deal and they do it quite often. This kind of volume is definitely a positive.
Many can; and many can't.
Those that can are buying. (They didn't buy because they had to wait for "confirmation" signal, i.e.. deal closure, warrant expiration. Fund managers tend to have longer tenures if they wait instead of jumping the gun. At least that was what I was told buy the "fund gurus" who used to manage my money.) This is only the first wave. The big bucks to be made are on the second wave the will follow a year from now.