Annual report pursuant to Section 13 and 15(d)

Common Shares and Warrants

v3.22.2.2
Common Shares and Warrants
 12 Months Ended
Aug. 31, 2022
Common Shares and Warrants  
Common Shares and Warrants

15. Common Shares and Warrants

 

Fiscal 2022 Activity

 

During the year ended August 31, 2022, the Company issued 224,299 restricted shares valued at $1,200,000 for payment of contracted services. We did not issue any warrants, no warrants were exercised, and 25,292 warrants expired.

 

A summary of share issuances for the year ended August 31, 2022, is presented below:

 

Type of Issuance

 

Number of

Shares

 

 

Total Value

$

 

Warrant exercise

 

 

 -

 

 

 

 -

 

Private placement

 

 

 -

 

 

 

 -

 

Per agreements(1)

 

 

 224,499

 

 

 

 1,200,000

 

 

 

 

 224,499

 

 

 

 1,200,000

 

 

(1) The Company awarded restricted common shares as required by consulting contracts. 

Presented below is a continuity schedule for warrants:

 

 

 

Number of

warrants

 

 

Weighted

average

exercise

price $

 

Balance August 31, 2020

 

 

 471,608

 

 

 

 16.77

 

Cancelled/Expired

 

 

 (44,161 )

 

 

 67.50

 

Exercised

 

 

 (610,189 )

 

 

 6.58

 

Issued

 

 

 2,630,017

 

 

 

 6.58

 

Balance August 31, 2021

 

 

 2,447,275

 

 

 

 8.00

 

Cancelled/Expired

 

 

 (25,292 )

 

 

 4.57

 

Balance August 31, 2022

 

 

 2,421,983

 

 

 

 8.04

 

 

The fair value of share purchase warrants granted as 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

2022

 

 

August 31

2021

 

Expected volatility

 

 

 -

 

 

 

 103 %

Risk-free interest rate

 

 

 -

 

 

 

 0.16 %

Expected life

 

 

 -

 

 

3 years

 

Dividend yield

 

-

%

 

 

 0 %

Estimated fair value per warrant

 

 

 -

 

 

 $ 6.51

 

 

Presented below is a summary of warrants outstanding as of August 31, 2022:

 

Number of Warrants

 

 

Weighted Average Remaining

Contractual Life

 

Weighted Average Exercise Price $

 

 

60,798

 

 

3.16 years

 

 

36.00

 

 

7,500

 

 

0.18 years

 

 

24.00

 

 

317,190

 

 

2.65 years

 

 

10.50

 

 

116,667

 

 

1.63-2.68 years

 

 

9.00

 

 

200,000

 

 

1.63 years

 

 

7.00

 

 

1,719,828

 

 

3.37 years

 

 

6.58

 

 

2,421,983

 

 

3.04 years

 

 

8.04

 

 

Fiscal 2021 Activity

 

On January 11, 2021, the Company filed an amendment and restatement of its articles of incorporation to effectuate a 1-for-30 reverse stock split of the issued and outstanding share of common stock of the Company.

 

During the year ended August 31, 2021, the Company closed an underwritten public offering for an aggregate total of 2,102,856 units priced at $5.25. Each unit consists of one common share and one share purchase warrant entitling the holder to acquire one common share, for a period of five years, at $6.58 per share. The Company paid fees of $1,568,499 and issued 227,161 broker warrants with a term of 24 months, each exercisable into one common share at $6.58 per share. The net proceeds of the offering were $9,471,497 after deducting underwriters discount, fees and expenses.

 

During the year ended August 31, 2021, the Company issued 610,189 common shares on the exercise of warrants for proceeds of $4,015,043.

 

The Company granted 300,000 warrants with an exercise price of $9.00 pursuant to consulting agreements in fiscal 2021. Using the Black-Scholes pricing model, the warrants were valued at $785,895 and were recorded as a consulting expense. Subsequent to the grant, 200,000 warrants were repriced at $7.00.