Broker 01 is all About the Warrants.....Simple Big Boys in the Game...Broker 01...Sells the Open Market and Take the same Money and Subscribes to the Placement. They get the warrants that carry no risk looking outwards. Eventually once the PP shares are released from Escrow Usually 4 months after the PP Closes will be free to Trade . Between that Time Open market Shares Gyrate all over the Place due to the New influx of Money into operations.
The warrants are what really attract the big investment money to participate in the private Placements. People who participate in PPs are typically wealthy investors who can buy up to $10,000 to $50,000 minimum worth of stock at one time. The company does not have time to do PPs with hundreds of people who can only invest $1000 or less. In Canada, the PP price can be no lower than 80% of the share price the previous day, at the time the private placement is started. After that, the stock may go up substantially
A curious rule about private placements is that a company cannot advertise them or engage in any "general solicitation". They can announce them, but not advertise. A private placement is supposed to be private. After an announcement, it may be too late to get in, as an investor may be expected to have a pre-existing relationship with the company.
This is not a recommendation to participate in private placements instead of buying stock on the open market. Each way of investing (open market vs. private placements) has it's own risks and rewards.