| Common Shares and Warrants [Text Block] |
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11.
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Common Shares and Warrants
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Fiscal 2018 Activity
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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.
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December 1, 2017, Lexaria also issued
14,634
restricted common shares at a price of $0.82
per shares to settle $12,000
of debt to a director of the Company. The Company awarded a total of
209,056
restricted common shares at an issuance price of $0.82
as required by intellectual property performance thresholds within an existing management consulting contract with the Company divided between three officers and three managers. Lexaria awarded
250,000
warrants with an exercise price of $0.83
and an expiration date of December 1, 2019 to a manager of the Company, pursuant to a management contract. The warrants were valued at $124,476
and included in consulting expense.
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January 17, 2018 the Company announced that it has engaged JGRNT Capital Corp to provide strategic consulting services to the Company for a one-year term and awarded
500,000
warrants, each valid to purchase one common share at a price of $1.83
and valid for two years. The warrants were valued at $567,647
and included in consulting expense.
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During the period ended February 28, 2018 the Company issued
35,913
compensation warrants with an exercise price of $0.60
expiring April 3, 2019. These compensation warrants were valued at $21,646
and recorded as a share issue cost within additional paid in capital for a net effect of $Nil.
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A continuity schedule for warrants is presented below:
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Weighted Average |
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Number of |
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Exercise Price |
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Warrants |
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$ |
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Balance, August 31, 2016 |
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12,136,241
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0.18
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Cancelled/Expired |
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(1,004,150
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0.22
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Exercised |
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(10,322,025
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) |
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0.23
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Issued |
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8,034,440
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0.36
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Balance, August 31, 2017 |
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8,844,506
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0.29
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Cancelled/Expired |
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(55,000
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0.27
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Exercised |
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(2,599,479
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0.36
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Issued |
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785,913
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1.46
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Balance, February 28, 2018 |
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6,975,940
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0.41
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The fair value of warrants granted as compensation warrants was estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions:
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February 28 |
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2018 |
| Expected volatility |
100% –
136%
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| Risk-free interest rate |
1.21%—2.05%
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| Expected life |
1.21
–
2.00
years
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| Dividend yield |
0.00%
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| Estimated fair value per warrant |
$0.40
– $1.14
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A summary of warrants outstanding as of February 28, 2018 is presented below:
| # of Warrants |
Weighted |
Weighted |
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Average |
Average |
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Remaining |
Exercise Price |
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Contractual Life |
$ |
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450,000
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0.45
years
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0.14
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500,000
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0.46
years
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0.44
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2,641,666
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0.50
years
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0.14
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500,000
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0.86
years
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0.44
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972,065
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1.09
years
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0.60
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212,209
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1.09
years
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0.42
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200,000
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1.31
years
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0.29
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750,000
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3.62
years
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0.14
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250,000
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1.76
years
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0.83
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500,000
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1.88
years
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1.83
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6,975,940
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1.12
years
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0.41
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