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Related Party Transactions
 3 Months Ended
Dec. 31, 2015
Related Party Transactions [Abstract]  
Related Party Transactions
Note 9 Related Party Transactions

 

During the three months ended December 31, 2015, the Company accrued general and administrative expenses totaling $3,044,855 (2014: $16,383) in respect of directors fees and stock and stock option compensation charges paid or accrued to directors and officers of the Company, inclusive of amounts noted below. Of the total, $746,514 related to non-cash stock option and stock compensation charges, and $2,290,341 was related to additional compensation associated with the vesting of restricted stock awards to a director and officer of the Company, in connection with the achievement of certain performance milestones, inclusive of and as further described below.

 

As at December 31, 2015, included in accounts payable and accrued liabilities was $47,000 (September 30, 2015: $33,000) owing to directors and officers of the Company for director fees and reimbursable expenses, and a former director and officer of the Company for unpaid fees.

 

During the year ended September 30, 2013, pursuant to an employment agreement with the President, Chief Executive Officer, Chief Financial Officer, Secretary and Treasurer, and Director, of the Company, the Company:

 

  i) granted 500,000 fully vested share purchase options exercisable at $1.60 per share until July 5, 2023.

 

  ii) issued 1,000,000 shares of restricted common stock that vest as follows:

 

  • 25% upon the Company starting a Phase Ib/IIb human study (vested during the year ended September 30, 2015 at a value of $610,000 and included in shares to be issued at December 31, 2015)

  • 25% upon the Company in-licensing additional assets in clinical or pre-clinical stage (vested during the year ended September 30, 2014 at a value of $610,000 and included in shares to be issued at December 31, 2015)

  • 25% upon the Company securing additional non-dilutive equity funding in 2013 of at least $5,000,000 with a share price higher than the previous funding (vested during the year ended September 30, 2015 at a value of $610,000 and included in shares to be issued at December 31, 2015)

  • 25% upon the Company obtaining a listing on a major stock exchange (vested during the three months ended December 31, 2015 at a value of $610,000 and included in shares to be issued at December 31, 2015)

 

Included in operating results for the three months ended December 31, 2015 are non-cash stock compensation charges of $610,000 (2014: $0) relating to the vesting of 250,000 (2014: 0) shares of restricted common stock upon the achievement of certain performance conditions, and $2,290,341 (2014: $0) in additional compensation obligations associated with the vesting. The fair value of $2.44 per share for non-cash stock compensation charges was determined with reference to the quoted market price of the Company’s shares on the commitment date. This amount has been included in common stock to be issued at December 31, 2015.