Quarterly report pursuant to Section 13 or 15(d)

Common Shares, Warrants and Options

v3.23.2
Common Shares, Warrants and Options
 9 Months Ended
May 31, 2023
Common Shares, Warrants and Options  
Common Shares, Warrants and Options

11. Common Shares, Warrants and Options

 

During the quarter ended May 31, 2023, the Company completed the following issuances of common shares, warrants and options:

 

1.

34,652 common shares were sold at an average price of $3.30 per share for net proceeds of $111,021 from our ATM Offering;

 

 

2.

267,969 options with exercise prices ranging from $9.60 to $4.80 were repriced to $3.00 following shareholder approval obtained at the Company’s annual shareholder meeting held on May 9, 2023; and

 

 

3.

2,106,000 units were sold at a price of $0.95 per unit, with each unit consisting of one common share and one warrant exercisable to purchase an additional common share at $0.95 per share, for net proceeds of $1,600,397. The 2,106,000 warrants are exercisable for a period of five (5) years.

 

No warrants have been exercised during the nine-months ended May 31, 2023.

 

A continuity schedule for warrants for the nine-months ending May 31, 2023, is presented below:

 

 

 

Number of Warrants

 

 

Weighted

Average Exercise

Price

 

Balance August 31, 2022

 

 

 2,421,983

 

 

 $ 8.04

 

Cancelled/expired

 

 

 (7,500 )

 

 $ 24.00

 

Issued

 

 

 2,106,000

 

 

 $ 0.95

 

Balance May 31, 2023

 

 

 4,520,483

 

 

 $ 4.71

 

A summary of warrants outstanding as of May 31, 2023, is presented below:

 

Number of Warrants

 

 

Weighted Average

Exercise Price

 

 

Weighted Average Remaining

Contractual Life (years)

 

 

60,798

 

 

 $ 36.00

 

 

1.46-1.5

 

 

317,190

 

 

 $ 10.50

 

 

1.93-1.95

 

 

116,667

 

 

 $ 9.00

 

 

0.88-1.79

 

 

200,000

 

 

 $ 7.00

 

 

 

0.88

 

 

1,719,828

 

 

 $ 6.58

 

 

 

2.63

 

 

2,106,000

 

 

 $ 0.95

 

 

 

4.95

 

 

4,520,483

 

 

 $ 4.71

 

 

 

3.53

 

 

Stock Options

 

The Company has established an Equity Incentive Plan which currently allows the board of directors to grant up to 510,433 stock options to directors, officers, employees, and consultants. On May 9, 2023, at its annual shareholder meeting, the Company’s shareholders approved amendments to the Equity Incentive Plan, whereby the board of directors were authorized to grant up to 809,165 stock options to directors, officers, employees, and consultants with such amount being adjusted on January 1 each year commencing January 1, 2024, pursuant to an evergreen formula, to be equal to up to 10% of the issued share capital on December 31 of the previous year. As at the current date, the Company has not elected to affect the amendments approved by its shareholders to its Equity Incentive Plan. Stock options granted must be exercised within five years from the date of grant or such lesser period as determined by the Company’s board of directors. The vesting terms of each grant are also set by the board of directors. The exercise price of an option is equal to or greater than the closing market price of the Company’s common shares on the day preceding the date of grant.

 

The Company granted the following options during the nine-months ended May 31, 2023:

 

 

 

Options

 

 

Weighted Average

Exercise Price

 

 

Contractual Life

(years)

 

 

 

 

 41,200

 

 

 $ 1.96

 

 

5

 

 

 

 

 5,000

 

 

 $ 2.73

 

 

5

 

 

 

 

 3,400

 

 

 $ 3.04

 

 

5

 

Total

 

 

 49,600

 

 

 $ 2.11

 

 

(Avg. Remaining Life) 4.39

 

 

A continuity schedule for stock options is presented below:

 

 

 

Options

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining

Contractual

Term

(years)

 

 

Aggregate

Intrinsic

Value

 

Balance August 31, 2021

 

 

 206,170

 

 

 $ 8.90

 

 

 

 

 

 

 

Cancelled/expired

 

 

 (3,334 )

 

 

 9.60

 

 

 

 

 

 

 

Granted

 

 

 222,000

 

 

 

 4.21

 

 

 

 

 

 

 

Balance August 31, 2022

 

 

 424,836

 

 

 

 6.45

 

 

 

 3.69

 

 

 $ 5,175

 

Granted

 

 

 49,600

 

 

 

 2.11

 

 

 

 4.39

 

 

 $ 55,748

 

Balance May 31, 2023 (granted)

 

 

 474,436

 

 

 $ 3.39

 

 

 

 3.42

 

 

 $ 0

 

Balance May 31, 2023 (exercisable)

 

 

 462,686

 

 

 $ 3.40

 

 

 

 3.42

 

 

 $ 0

 

The fair value of stock options granted in the nine-months ended May 31, 2023, were estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions:

 

Expected volatility

 

98%-1.05

%

Risk-free interest rate

 

3.30%-4.12

%

Expected life

 

5 years

 

Dividend yield

 

 

 0 %

Estimated fair value per option

 

 $

1.60 - $2.58

 

 

As of May 31, 2023, the total unrecognized non-cash compensation costs are $39,117 related to 11,750 non-vested stock options with a $3.27 weighted average price. These costs are expected to be recognized over a weighted average period of 0.82 years. All non-vested options are attributable to employees. Stock based compensation expense recognized in the nine-months ended May 31, 2023, totaled $160,748, including $25,194 related to the repricing of the 267,969 options.