T + 2 Settlement CycleThe placement currently being unlocked was closed in two tranches four months ago. The first tranche becomes free trading Jan 12 and the second Jan 13. The 'dumping' of the first tranche of the PP could legally (without going short) have begun on Wednesday because of the T + 2 settlement cycle. The 5 million shares crossed yesterday were likely part of that tranche. Crosses are arranged to minimize effects on the market.
There are a total of 30 million units in the two tranches plus 1,532,000 broker units. Each unit is comprised of one share plus one warrant exercisable at $0.15 expiring one year after the closing dates. There is no mention of an acceleration clause for the warrants.
Management and directors took a total of 4.8 million units. The shares from these units are less likely to be sold immediately, but you never know. The brokers shares will likely be sold immediately, having a considerable profit in the books already. They will likely also exercise their warrants and sell those shares as well. That's how they make their money.
It would be naive to think that none of the shares from the units will be sold given the profits to be had. One strategy in PPs is to sell the shares or at least some and hold the warrants.
A second 24.9 million unit financing @ $0.15 consisting of one share and one warrant exercisable @ $0.25 for 18 months was also closed in two tranches. There are 1.1 million brokers units associated with this placement. It becomes unlocked on April 2 and April 8. There is an acceleration clause on the warrants if the shares trade over $0.30 for 10 consecutive days.
AIMO and good luck.