| Common Shares and Warrants |
12. Common Shares and Warrants
During the quarter ended February 29, 2020 the Company issued 110,000 shares on the exercise of previously granted stock options for a total value of $11,000.
A year to date summary of share issuances is presented below:
Type of Issuance |
|
|
Number of |
|
|
|
Total |
|
| |
|
|
Shares |
|
|
|
Value $ |
|
Option exercise |
|
|
110,000 |
|
|
|
11,000 |
|
Private placement(1) |
|
|
1,823,745 |
|
|
|
820,685 |
|
|
|
|
1,933,745 |
|
|
$ |
831,685 |
|
(1) Fees of $4,665 were paid for net receipt of $816,020
A continuity schedule for warrants is presented below:
|
|
Number of
Warrants
|
|
|
Weighted Average Exercise
Price $
|
|
Balance, August 31, 2018 |
|
|
3,286,274 |
|
|
|
0.72 |
|
Cancelled/Expired |
|
|
(17,498 |
) |
|
|
0.59 |
|
Exercised |
|
|
(1,626,513 |
) |
|
|
0.49 |
|
Issued |
|
|
1,183,062 |
|
|
|
1.99 |
|
Balance, August 31, 2019 |
|
|
2,825,325 |
|
|
|
1.38 |
|
Cancelled/expired |
|
|
(750,000 |
) |
|
|
1.50 |
|
Issued |
|
|
2,057,495 |
|
|
|
0.80 |
|
Balance February 29, 2020 |
|
|
4,132,820 |
|
|
|
1.07 |
|
The fair value of share purchase warrants granted was estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions:
|
|
February 29
2020
|
|
Expected volatility |
|
|
91% |
|
Risk-free interest rate |
|
|
2.87% |
|
Expected life |
|
|
2 years |
|
Dividend yield |
|
|
0.00% |
|
Estimated fair value per warrant |
|
|
$0.28 - $0.43 |
|
A summary of warrants outstanding as of February 29, 2020 is presented below:
# of Warrants |
|
|
Weighted Average Remaining Contractual Life |
|
Weighted Average Exercise Price $ |
|
975,325 |
|
|
0.67 years |
|
|
2.25 |
|
100,000 |
|
|
1.23 years |
|
|
0.96 |
|
250,000 |
|
|
1.24 years |
|
|
1.55 |
|
750,000 |
|
|
1.60 years |
|
|
0.14 |
|
225,000 |
|
|
2.68 years |
|
|
0.80 |
|
| 1,562,995 |
|
|
1.71 years |
|
|
0.80 |
|
| 269,500 |
|
|
1.75 years |
|
|
0.80 |
|
4,132,820 |
|
|
1.46 years |
|
|
1.07 |
|
| 13. |
Common Shares and Warrants |
|
|
|
Fiscal 2019 Activity
During the year ended August 31, 2019 the Company closed a non-brokered private placement for 947,150 Units priced at $1.60 each. Each Unit consists of one common share and one Share purchase warrant. Each warrant shall entitle the holder to acquire one common share at a price of $2.25 per Share for a period of 24 months. The Company also issued 28,175 broker warrants. The broker warrants have a term of 24 months and are each exercisable into one common share of the Company at a price of $2.25. The fair value of these broker warrants was determined to be $16,095, which were recorded as a share issue cost within additional paid in capital for a net effect of $Nil.
The company granted a total of 107,737 broker warrants with a value of $6,484 that were recorded as a share issue cost within additional paid in capital for a net effect of $Nil.
The company granted a total of 100,000 warrants pursuant to an agreement with a vendor valued at $52,817 that were recorded as an expense within investor relations.
During the year ended August 31, 2018 the Company recognized $51,448 in consulting expense for warrants previously granted to a consultant upon vesting.
Fiscal 2018 Activity
On October 27, 2017 the Company extended the expiration date of warrants originally issued on January 9, 2017, with a one-year expiration date. The warrant quantity and exercise price remain unchanged, 500,000 warrants exercisable at $0.44, will now expire on January 9, 2019. There was a $Nil effect on the modification of the warrants.
During the year ended August 31, 2018 the Company granted a total of 1,000,000 warrants with a fair value of $1,011,822 pursuant to consulting agreements signed during the year. The value of the warrants was recorded in consulting fees on the statement of operations. The company also granted a total of 35,913 warrants with a value of $21,646 which were recorded as a share issue cost within additional paid in capital for a net effect of $Nil.
During the year ended August 31, 2018 the Company recognized $51,448 in consulting expense for warrants previously granted to a consultant upon vesting.
|
| |
A summary of share issuance is presented relating to option and warrant exercises, agreement requirements and debt settlement is presented below: |
Type of Issuance |
|
Number
of Shares
|
|
|
Total
Value
|
|
Warrant exercise(1) |
|
|
1,626,513 |
|
|
|
796,122 |
|
Option exercise |
|
|
430,000 |
|
|
|
66,250 |
|
Private placement |
|
|
947,150 |
|
|
|
1,515,440 |
|
Per agreements(2) |
|
|
250,000 |
|
|
|
234,500 |
|
|
|
|
3,253,663 |
|
|
$ |
2,612,312 |
|
|
(1) Includes 384,212 broker warrants exercised for gross proceeds of $191,742 |
|
(2) The Company awarded the restricted common shares as required by consulting contracts |
| |
A continuity schedule for warrants is presented below: |
|
|
Number of Warrants |
|
|
Weighted
Average
Exercise
Price $
|
|
Balance August 31, 2017 |
|
|
8,844,506 |
|
|
|
0.29 |
|
Cancelled/Expired |
|
|
(230,000 |
) |
|
|
0.17 |
|
Exercised |
|
|
(6,364,145 |
) |
|
|
0.28 |
|
Issued |
|
|
1,035,913 |
|
|
|
1.48 |
|
Balance August 31, 2018 |
|
|
3,286,274 |
|
|
|
0.72 |
|
Cancelled/Expired |
|
|
(17,498 |
) |
|
|
0.59 |
|
Exercised |
|
|
(1,626,513 |
) |
|
|
0.49 |
|
Issued |
|
|
1,183,062 |
|
|
|
1.99 |
|
Balance August 31, 2019 |
|
|
2,825,325 |
|
|
|
1.38 |
|
| |
The fair value of share purchase warrants granted as broker warrants, compensation units, and compensatory warrants, was estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions: |
|
|
August 31
2019
|
|
August 31
2018
|
Expected volatility |
|
1% – 117% |
|
100% – 154% |
Risk-free interest rate |
|
2.31% – 2.87% |
|
1.21% – 2.60% |
Expected life |
|
1 day – 2 years |
|
1.21 – 3 years |
Dividend yield |
|
0.00% |
|
0.00% |
Estimated fair value per warrant |
|
$Nil – $0.57 |
|
$0.40 – $1.48 |
| |
A summary of warrants outstanding as of August 31, 2019 is presented below: |
# of Warrants |
|
|
Weighted Average Remaining
Contractual Life
|
|
|
Weighted Average
Exercise Price $
|
|
|
250,000 |
|
|
0.25 years |
|
|
0.83 |
|
|
500,000 |
|
|
0.38 years |
|
|
1.83 |
|
|
975,325 |
|
|
1.17 years |
|
|
2.25 |
|
|
100,000 |
|
|
1.73 years |
|
|
0.96 |
|
|
250,000 |
|
|
1.73 years |
|
|
1.55 |
|
|
750,000 |
|
|
2.11 years |
|
|
0.14 |
|
|
2,825,325 |
|
|
1.27 years |
|
|
1.38 |
|
|