RE: PPFor
.50 a share they got their 200,000 shares of Centurion = $100,000
They also received 200,000 half warrants for free which can be exercised to purchase shares of Centurion on a two warrants per one share basis at a price of
.64 per share. In other words when they invested their $100,000 they also were given the opportunity to purchase 100,000 more shares at a price of
.64 per share at any time prior to January 11, 2012.
IF the price of CTN is less than $ 0.64 there is no advantage to exercising these half warrants; but when the share price is above $ 0.64 then they can exercise the warrants and purchase the shares for $ 0.64 on a day when the shares could be trading around $ 0.90 or more and sell them for a tidy $ 0.26 per share profit. OR they could hold them until the price is above $ 1.00 or more any time before they expire.
Sometimes people will take part in a PP for the warrants alone, and after the PP shares become free trading (four months), they sell them to get their money back and sit on the warrants until the price is "in the money".