Note 11 - Subsequent Events

9 Months Ended

Sep. 30, 2014

11. Subsequent events:

(a) Share consolidation:

(i) On October 1, 2014, the Company effected a 1 for 4.86 reverse share split of its common and Series A, B and E redeemable convertible preferred shares. At the time of the consolidation, there were no outstanding Series C and D preferred shares and therefore such series were not included in the consolidation. Accordingly, (i) every 4.86 common shares have been combined into one common share, (ii) every 4.86 redeemable Series A, B and E convertible preferred shares have been combined into one redeemable convertible preferred share, (iii) the number of common shares into which each outstanding subscription right is exchangeable into common shares have been proportionately decreased on a 1 for 4.86 basis, (iv) the number of common shares into which each outstanding option to purchase common shares is exercisable have been proportionately decreased on a 1 for 4.86 basis, and (v) the exercise price for each such outstanding option to purchase common shares has been proportionately increased on a 1 for 4.86 basis. All of the share numbers, share prices, and exercise prices in these financial statements have been adjusted, on a retroactive basis, to reflect this 1 for 4.86 reverse share split.

(ii) Immediately prior to the closing of the Company’s IPO, all outstanding Series A and B redeemable convertible preferred shares were converted into common shares on a 1 for 1 basis and Series E redeemable convertible preferred shares were converted into common shares on a 1 for 1.20 basis, subject to certain adjustments (notes 1 and 11b). These adjustments differ for some of the Company’s outstanding Series E preferred shares depending on the date of issue, resulting in different conversion ratios for different Series E preferred shares.

	Preferred Shares Outstanding		Conversion into Common Shares upon Initial Public Offering

Series A		1,151,468		1,151,468
Series B		994,885		994,885
Series E		4,322,126		5,579,571
Total		6,468,479		7,725,924

(b) Initial public offering and concurrent private placement:

On November 10, 2014, the Company completed an IPO of 4,600,000 of its common shares at a price to the public of $9.00 per share. On November 10, 2014, the Company also completed a private placement, in which the Company issued and sold 495,000 of its common shares to an affiliate of Genentech at a price of $9.00 per share (note 1). As of November 10, 2014, after completion of the IPO and concurrent private placement, the Company had a total of 14,181,333 common shares outstanding.