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CAPITAL STOCK
 3 Months Ended
Mar. 31, 2016
CAPITAL STOCK [Text Block]

9. CAPITAL STOCK

Authorized capital stock

The Company is authorized to issue an unlimited number of Common Shares without par value, unlimited Preferred Shares issuable in series, and unlimited Series A Preferred Shares. The Series A Preferred shares are non-redeemable, non-callable, non-voting and with no right to dividends. The Preferred Shares issuable in series will have the rights, privileges, restrictions and conditions assigned to the particular series upon the Board of Directors approving their issuance.

Issued capital stock

The significant transactions relating to capital stock issued for the three months ended March 31, 2016:

a)

In the three months ended March 31, 2016, The Company issued 200,200 shares under the Company’s “at-the- market” offering (the “ATM”) for proceeds of $0.53 million.

   
b)

On March 14, 2016, the Company completed a public offering of 5,031,250 units at a price of $2.40 per unit for gross proceeds of $12.08 million. Each unit consisted of one common share and one-half of one warrant. Each Unit consists of one common share and one half of one common share purchase warrant, or a total of 5,031,250 Shares and 2,515,625 Warrants. Each Warrant is exercisable until March 14, 2019 and entitles the holder thereof to acquire one Share upon exercise at an exercise price of US$3.20 per share.

Share Purchase Warrants

The Company has share purchase warrants denominated in Canadian dollars and US dollars.

The following table summarizes the Company’s share purchase warrants denominated in Cdn$:

 

          Exercise Price     Warrants  
Month Issued   Expiry Date     Cdn$     Outstanding  
June 2012   June 22, 2016     13.25     351,025  
June 2013   June 15, 2016     9.50     456,948  

The following table summarizes the Company’s share purchase warrants denominated in USD. These warrants are accounted for as derivative liabilities as the exercise price has a different currency than the Company parent entity.

          Exercise Price     Warrants     Fair value at  
Month Issued   Expiry Date     USD$     Outstanding     March 31, 2016  
June 2015   January 25, 2017     6.28     1,224,000   $ 93  
March 2016   March 14, 2019     3.20     2,515,625     2,023  
                    $ 2,116  

The US dollar based warrants are classified as Level 2 under the fair value hierarchy (Note 15).

The following weighted average assumptions were used for the Black-Scholes option pricing model to calculate the $2.09 million of fair value for the 2,515,625 warrants issued in connection with the public offering in March 2016.

Risk-free rate 1.15%
Expected life 3.0 years
Expected volatility 61.2%*
Expected dividend yield 0.0%

  *

Expected volatility is measured based on the Company’s historical share price volatility over the expected life of the warrants.