Common Shares and Warrants |
11. |
Common Shares and Warrants |
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Fiscal 2019 Activity
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On October 31, 2018, the Company closed a non-brokered private placement for gross proceeds of $1,515,440 (the “Offering”). The Offering consisted of 947,150 units (each, a “Unit”) at an issue price of $1.60 per Unit. Each Unit consists of one common share of the Company (a “Share”) and one common share purchase warrant (each, a “Warrant”). Each Warrant entitles the holder to acquire one common share of the Company at a price of $2.25 per common share for a period of 24 months following the closing of the Offering. Finder’s fees of $45,130 and 28,175 finder’s warrants were paid on a portion of the proceeds raised, with each finder’s warrant having exercise terms identical to the Warrants issued. The warrants were valued at $16,095, which were recorded as a share issue cost within additional paid in capital for a net effect of $Nil.
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Type of Issuance
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Number
of Shares
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Total
Value
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Warrant Exercise
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309,800 |
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$ |
145,880 |
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Option Exercise
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330,000 |
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$ |
33,000 |
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Private Placement
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947,150 |
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$ |
1,515,440 |
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1,586,950 |
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$ |
1,694,320 |
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A continuity schedule for warrants is presented below:
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Number of
Warrants
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Weighted Average Exercise Price
$
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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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(230,000 |
) |
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0.17
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Exercised
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(6,364,145 |
) |
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0.28
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Issued
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1,035,913 |
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1.48
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Balance, August 31, 2018
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3,286,274 |
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0.72
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Exercised
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(309,800 |
) |
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0.47
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Issued
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975,325 |
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2.25
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Balance, November 30, 2018
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3,951,799 |
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1.11
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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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November 30
2018
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Expected volatility
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117%
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Risk-free interest rate
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2.87%
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Expected life
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2.00 years
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Dividend yield
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0.00%
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Estimated fair value per warrant
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$0.57
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A summary of warrants outstanding as of November 30, 2018 is presented below:
# of Warrants
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Weighted Average
Remaining Contractual Life
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Weighted Averag
Exercise Price
$
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250,000
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0.11 years
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0.44
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564,265
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0.34 years
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0.60
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212,209
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0.34 years
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0.42
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200,000
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0.55 years
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0.295
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750,000
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2.86 years
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0.14
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250,000
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1.00 years
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0.83
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500,000
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1.13 years
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1.83
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250,000
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2.48 years
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1.55
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975,325
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1.92 years
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2.25
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3,951,799
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1.48 years
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1.11
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