When you participate in a private placement you normally get 1 warrant for every two shares you buy. I participated in a PP with Orezone where I get a warrant. This gives me the option to buy a share for predetermined price on a specific day.  So the strike price is .80 and on Jan 23 2023 I could buy a share of Orezone for .80 regardless of the price that day.  Obviously I would not buy it if the share was below that price.  Thats a benefit of participating in a PP.   Also the benefit of this particular option is I could sell mine which cost me nothing for the quoted warrant price which today is around .45 and I could bank the profit as a Capital Gains.   Also I could buy a warrant today for .45 which on Jan 23 2023 would allow me to buy a Orezone share for .80 which means I would have invested 1.25.  If the stock on that day is below $1.25 I have to make a descision,  whether to throw more money at the stock.    So buying a warrant gives you leverage and if you think the stock will be above $1.25 next Jan then you put out less money today than buying the stock today ---thats the risk 

So Iam long thinking the stock will be above .80 on Jan 23, 2023 and much higher