CAPITAL STOCK (Tables)

3 Months Ended

Mar. 31, 2017

Stockholders' Equity Note [Abstract]

Schedule of Stockholders' Equity Note, Warrants or Rights

The following table summarizes the Company’s share purchase warrants denominated in Canadian dollars:



Month Issued	Expiry Date	Exercise Price Cdn$	Warrants Outstanding
June 2012(1)	June 22, 2017	13.25	351,025
June 2013(1)	June 15, 2017	9.50	456,948


(1)	The expiration date for these warrants was extended by one year on March 24, 2016.

The following table summarizes the Company’s share purchase warrants denominated in US dollars. These warrants are accounted for as derivative liabilities as the functional currency of the entity issuing the warrants is Canadian dollars.



Month Issued	Expiry Date	Exercise Price USD$	Warrants Outstanding	Fair value at March 31, 2017
March 2016 (a)	March 14, 2019	3.20	2,515,625	1,459
September 2016	September 20, 2021	2.45	4,168,750	4,663
				$	6,122

(a) The US dollar based warrants issued in March 2016 are classified as Level 2 under the fair value hierarchy (Note 14).

Schedule of share-based payment award, stock options, valuation assumptions

The following weighted average assumptions were used for the Black-Scholes option pricing model to calculate the $1.46 million of fair value for the 2,515,625 warrants at March 31, 2017.



Risk-free rate	1.27%
Expected life	2.0 years
Expected volatility	98.01%*
Expected dividend yield	0.00%


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

The fair value of the options granted under the Compensation Plan for the three months ended March 31, 2017 was estimated at the date of grant, using the Black-Scholes Option Valuation Model, with the following weighted-average assumptions:



Risk-free interest rate	1.93%
Expected life	5.0 years	*
Expected volatility	62.95%
Expected dividend yield	0.00%
Weighted-average expected life of option	5.00
Weighted-average grant date fair value	$1.19


*	Expected volatility is measured based on the Company’s historical share price volatility over a period equivalent to the expected life of the options.

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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