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STOCK PURCHASE WARRANTS | 9 Months Ended
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Aug. 31, 2013
STOCK PURCHASE WARRANTS [Text Block] |
7. | STOCK PURCHASE WARRANTS
| Year ended November 30, 2012
| On January 4, 2012, the board of directors issued warrants to a Company in which the Chief Operating officer has an interest in, to acquire a total of 800,000 common shares. These warrants were issued at an exercise price of $0.13 per share with an expiry term of four years. The Company expensed stock based compensation cost of $100,148. The fair value of each warrant used for the purpose of estimating the compensation expense is calculated using the Black-Scholes option pricing model with the following weighted average assumptions:
Risk free rate |  | 2.00% |
Expected dividends |  | 0% |
Forfeiture rate |  | 0% |
Volatility |  | 206.87% |
Market price of Company’s common stock on date of grant of options | $ | 0.13 |
Compensation expense | $ | 100,148 |
On March 9, 2012, all of the issued and outstanding stock options for common shares in the Company’s capital stock previously issued to Elad, Ilan Shalev and Haim Danon (being principals of Elad) were exchanged into warrants on terms identical to the terms of the existing stock options in the Company. The Company thus cancelled 850,000 options having an exercise price of $0.25 per common share and expiring on June 30, 2014 and issued 850,000 warrants at exercise price of $0.25 per common share and expiring June 30, 2014 (see note 6) On August 9, 2012, the board of directors issued warrants to a Company owned and controlled by a director, to acquire a total of 400,000 common shares. These warrants were issued at an exercise price of $0.20 per share with an expiry term of four years. The Company expensed stock based compensation cost of $75,013. The fair value of each warrant used for the purpose of estimating the compensation expense is calculated using the Black-Scholes option pricing model with the following weighted average assumptions:
Risk free rate |  | 3.63% |
Expected dividends |  | 0% |
Forfeiture rate |  | 0% |
Volatility |  | 183.31% |
Market price of Company’s common stock on date of grant of options | $ | 0.20 |
Compensation expense | $ | 75,013 |
On October 3, 2012, the board of directors issued warrants to a consultant, to acquire a total of 75,000 common shares. These warrants were issued at an exercise price of $0.42 per share with an expiry term of three years. The Company expensed stock based compensation cost of $28,911. The fair value of each warrant used for the purpose of estimating the compensation expense is calculated using the Black-Scholes option pricing model with the following weighted average assumptions:
Risk free rate |  | 1.5% |
Expected dividends |  | 0% |
Forfeiture rate |  | 0% |
Volatility |  | 199.60% |
Market price of Company’s common stock on date of grant of options | $ | 0.42 |
Compensation expense | $ | 28,911 |
On September 19, 2012 the board of directors approved the cancellation of 905,000 options issued on January 4, 2012, to be exchanged into 905,000 warrants on terms identical to the terms of the existing stock options in the Company. The cancellation of 905,000 options and issuance of 905,000 warrants in lieu thereof was effective October 8, 2012 (see note 6). Nine months ended August 31, 2013 On January 30, 2013, the board of directors granted 100,000 warrants as an incentive to a lender who provided a working capital loan of $193,400 (CAD $200,000). These warrants were issued at an exercise price of $0.50 per share and vest immediately with an expiry term of two years. The fair value of incentive warrants used for the purpose of estimating the stock compensation is calculated using the Black-Scholes option pricing model with the following weighted average assumptions:
Risk free rate |  | 1.35% |
Expected dividends |  | 0% |
Forfeiture rate |  | 0% |
Volatility |  | 187.87% |
Market price of Company’s common stock on date |  |  |
of grant of options | $ | 0.47 |
Compensation expense | $ | 38,183 |
On March 14, the board of directors granted 50,000 warrants as an incentive to a director who provided a working capital loan of $96,700 (CAD $100,000). These warrants were issued at an exercise price of $0.50 per share and vest immediately with an expiry term of two years. The fair value of incentive warrants used for the purpose of estimating the stock compensation is calculated using the Black-Scholes option pricing model with the following weighted average assumptions:
Risk free rate |  | 1.35% |
Expected dividends |  | 0% |
Forfeiture rate |  | 0% |
Volatility |  | 182.13% |
Market price of Company’s common stock on date of grant of options | $ | 0.40 |
Compensation expense | $ | 15,637 |
On April 12, 2013, the board of directors granted 100,000 warrants as an incentive to a lender who provided a working capital loan of $193,400 (CAD $200,000).. These warrants were issued at an exercise price of $0.50 per share and vest immediately with an expiry term of two years. The fair value of incentive warrants used for the purpose of estimating the stock compensation is calculated using the Black-Scholes option pricing model with the following weighted average assumptions:
Risk free rate |  | 1.35% |
Expected dividends |  | 0% |
Forfeiture rate |  | 0% |
Volatility |  | 168.05% |
Market price of Company’s common stock on date of grant of options | $ | 0.35 |
Compensation expense | $ | 25,351 |
On May 14, 2013, the board of directors granted 75,000 warrants as an incentive to a lender who provided a working capital loan of $145,050 (CAD$150,000). These warrants were issued at an exercise price of $0.50 per share and vest immediately with an expiry term of two years. The fair value of incentive warrants used for the purpose of estimating the stock compensation is calculated using the Black-Scholes option pricing model with the following weighted average assumptions:
Risk free rate |  | 1.35% |
Expected dividends |  | 0% |
Forfeiture rate |  | 0% |
Volatility |  | 181.17% |
Market price of Company’s common stock on date of grant of options | $ | 0.35 |
Compensation expense | $ | 20,074 |
On August 27, 2013, the Company completed an initial public offering to raise gross proceeds of CDN $3,794,280 (CAD $3,993,980) through the issuance of 9,984,950 Common Shares at a price of $0.38 (CDN$0.40) per Common Share (the “Issue Price”). The Company granted an option (the “Agent’s Option”) to purchase up to 898,645 Common Shares to the Agent and members of its selling group. The Agent’s Option entitles the Agent and members of its selling group to purchase Common Shares at a price of CDN$0.40 (US $0.38) per Common Share until August 27, 2015.

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