Quarterly report pursuant to Section 13 or 15(d)

Common Shares and Warrants

v3.19.1
Common Shares and Warrants
6 Months Ended
Feb. 28, 2019
Notes to Financial Statements  
Common Shares and Warrants

Fiscal 2019 Activity

 

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.

 

Type of Issuance   Number of Shares     Total Value  
Warrant Exercise(1)     1,041,465     $ 508,679  
Option Exercise     380,000     $ 51,500  
Private Placement     947,150     $ 1,515,440  
Per Agreement(2)     100,000     $ 131,000  
      2,468,615     $ 2,206,619  

 

(1) Includes 301,665 broker warrants exercised for gross proceeds of $144,799

(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  
Exercised     (1,041,465 )     0.49  
Issued     1,075,880       2.08  
Balance, February 28, 2019     3,320,689       1.24  

 

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:

 

   

February 28

2019

 
Expected volatility     117 %
Risk-free interest rate     2.87 %
Expected life   2.00 years  
Dividend yield     0.00 %
Estimated fair value per warrant   $ 0.57  

 

A summary of warrants outstanding as of February 28, 2019 is presented below:

 

# of Warrants   Weighted Average Remaining Contractual Life  

Weighted Average Exercise Price

$

384,265   0.09 years   0.60
11,099   0.09 years   0.42
200,000   0.31 years   0.295
750,000   2.62 years   0.14
250,000   0.76 years   0.83
500,000   0.88 years   1.83
250,000   2.24 years   1.55
975,325   1.67 years   2.25
3,320,689   1.47 years   1.24