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Common Stock
 3 Months Ended
May 31, 2022
Equity [Abstract]  
Common Stock

Note 10 - Common Stock

 

The Company issued 12,705,541 shares of common stock for the year ended February 28, 2021 for consideration of $5,665,533, including 8,858,207 shares of common stock to consultants.

 

The Company issued 500,000 shares of common stock at a deemed price of $2.00 per share during the fiscal year ended February 28, 2021 pursuant to the conversion of promissory notes in the aggregate amount of $1,000,000.

 

The Company cancelled 150,000 shares of common stock during the fiscal year ended February 28, 2021 pursuant to a financial advisory service agreement.

 

On March 29, 2021, the Company issued 10,000 shares of our common stock at $2.00 per share to one individual pursuant to the exercise of warrants.

 

On April 14, 2021, the Company issued 5,000 shares of our common stock at price of $2.00 per share to one individual pursuant to a consulting agreement.

 

On May 7, 2021, the Company issued (i) 70,000 shares of our common stock at $2.00 per share to 2 individuals and one entity pursuant to the exercise of warrants, and (ii) 6,666 shares of our common stock at $3.00 to one entity pursuant to the exercise of warrants.

 

On June 1, 2021, the Company issued 25,000 shares of our common stock at a deemed price of $5.00 per shares to one individual pursuant to a consulting agreement.

 

On July 13, 2021, the Company issued (i) 568,900 shares of our common stock at price of $5.00 per share to 17 individuals and 2 entities (ii) 45,000 shares of our common stock at $2.00 per share to 2 individuals pursuant to the exercise of warrants, (iii) 60,000 shares of our common stock at $3.00 per share to one individual pursuant to the exercise of warrants, (iv) 5,000 shares of our common stock at deemed price of $2.00 per share to one individual pursuant to a consulting agreement, and (v) 25,000 shares of our common stock at a deemed price of $5.00 per share to one individual pursuant to a consulting agreement.

 

On August 16, 2021, the Company issued 218,000 shares of common stock at $2.50 per share and 700,000 shares of common stock at $0.50 per share to one individual pursuant to the conversion of promissory notes.

 

On August 27, 2021, the Company issued 1,500,000 shares of common stock at $0.50 per share and 59,200 shares of common stock at $5.00 per share to one individual pursuant to the conversion of promissory notes.

 

On October 28, 2021, the Company issued 5,000 shares of our common stock at deemed price of $2.00 per share to one individual pursuant to a consulting agreement.

 

On November 5, 2021, the Company issued 276,000 shares of our common stock at price of $5.00 per share to 4 individuals.

 

On December 7, 2021, the Company issued 30,000 shares of our common stock at price of $3.00 per share to 2 individuals pursuant to the exercise of warrants.

 

On January 7, 2022, the Company issued 55,000 shares of our common stock at deemed price of $5.00 per share to two entities pursuant to a consulting agreement.

 

On January 12, 2022, the company cancelled 15,000 shares of our common stock issued to 1 individual pursuant to a consulting agreement.

 

On February 4, 2022, the Company issued 5,000 shares of our common stock at deemed price of $5.00 per share to one entity pursuant to a consulting agreement.

 

On February 7, 2022, the Company issued 70,000 shares of our common stock at price of $5.00 per share to 4 individuals

 

On March 7, 2022 the Company issued 5,000 shares of our common stock at deemed price of $5.00 per share to one entity pursuant to a consulting agreement.

 

On March 23, 2022, the Company issued 10,000 shares of our common stock at a deemed price of $3.66 per share to one individual pursuant to a consulting agreement.

 

On March 23, 2022, the Company issued an aggregate of 25,000 shares of our common stock at a deemed price of $2.85 per share to two individuals and one entity pursuant to consulting agreements.

 

On April 14, 2022, the Company issued 5,000 shares of our common stock at a deemed price of $5.00 per share to one entity pursuant to a consulting agreement.

 

On April 28, 2022, the Company issued 50,000 shares of our common stock at a deemed price of $2.61 per share to one entity pursuant to a consulting agreement.

 

On April 28, 2022, the Company issued 5,000 shares of our common stock at a deemed price of $2.56 per share to one entity pursuant to a consulting agreement.

 

On April 28, 2022, the Company issued 20,000 shares of our common stock at a deemed price of $2.51 per share to one individual pursuant to a consulting agreement.

 

On May 10, 2022, the Company issued 5,000 shares of our common stock at a deemed price of $5.00 per share to one entity pursuant to a consulting agreement.

 

On May 10, 2022, the Company issued 5,000 shares of our common stock at a deemed price of $3.66 per share to one individual pursuant to a consulting agreement.

 

On May 12, 2022, the Company issued 20,000 shares of our common stock at a deemed price of $2.03 per share to one entity pursuant to a consulting agreement as amended.

 

Share Purchase Warrants

 

A continuity schedule of outstanding share purchase warrants as at May 31, 2022, and the changes during the periods, is as follows:

 

          
   Number of
Warrants		   Weighted Average
Exercise Price		 
Balance, February 28, 2020   —   $— 
Issued in Connection with October 2020 Offering   488,500   $2.10 
Issued in connection with January 2021 Offering   1,604,334   $3.00 
Exercised   (25,000)  $2.00 
Balance, February 28, 2021   2,067,834   $2.80 
Exercised   (221,666)  $2.44 
Balance, February 28, 2022   1,846,168   $2.84 
 Exercised   —    — 
Balance, May 31, 2022   1,846,168   $2.84 

 

During Fiscal 2022 and Fiscal 2021, we received cash proceeds totaling $539,998 and $50,000, respectively, from the exercise of share purchase warrants.

 

A summary of share purchase warrants outstanding and exercisable as at May 31, 2022 is as follows:

 

               
    Number of Warrants   Remaining Contractual    
Exercise Price   Outstanding   Life (Years)   Expiry Date
$2.00    288,500    0.38   18-Oct-22
$3.00    50,000    0.38   18-Oct-22
$3.00    1,507,668    0.62   12-Jan-23
$2.84    1,846,168         

 

Stock Options

 

On December 28, 2021, we granted an aggregate of 4,545,500 stock options pursuant to our 2021 Stock Incentive Plan having an exercise price of $8.00 per share and an expiry date of five years from the date of grant to 40 individuals who were directors, officers, employees and consultants of the Company. We relied upon the exemption from registration under the U.S. Securities Act provided by Rule 903 of Regulation S promulgated under the U.S. Securities Act for the grant of stock options to the individuals who are non-U.S. persons, and upon the exemption from registration under Section 4(a)(2) of the U.S. Securities Act for two individuals who are U.S. persons. The stock options are all subject to vesting provisions of 20% on the date of grant and 20% on each of the first, second, third and fourth anniversary of the date of grant.

 

The fair value of these stock options was estimated at the date of grant, using the Black-Scholes Option Valuation Model, with the following weighted average assumptions:

 

          
   May 31,
2022		   February 28,
2022		 
Expected Risk Free Interest Rate   1.06%   1.06%
Expected Volatility   15.27%   15.27%
Expected Life in Years   5.0    5.0 
Expected Dividend Yield   —    — 
Weighted-Average Grant Date Fair Value  $6.46   $6.46 

 

 

A continuity schedule of outstanding stock options as at May 31, 2022, and the changes during the three months periods, is as follows:

 

          
   Number of Stock Options   Exercise Price 
Balance, February 28, 2022   4,545,500   $8.00 
Granted   —    — 
Cancelled/Forfeited   —    — 
Expired   —    — 
Balance, May 31, 2022   4,545,500   $8.00 

 

The table below sets forth the number of issued shares and cash received upon exercise of stock options:

 

          
    May 31,
2022		    February 28,
2022		 
Number of Options Exercised on Forfeiture Basis   —    — 
Number of Options Exercised on Cash Basis   —    — 
Total Number of Options Exercised   —    — 
           
Number of Shares Issued on Cash Exercise   —    — 
Number of Shares Issued on Forfeiture Basis   —    — 
Total Number of Shares Issued Upon Exercise of Options   —    — 
           
Cash Received from Exercise of Stock Options  $—   $— 
Total Intrinsic Value of Options Exercised  $—   $— 

 

A continuity schedule of outstanding unvested stock options at May 31, 2022, and the changes during the three months periods, is as follows:

 

          
   Number of Unvested   Weighted Average 
   Stock
Options		   Grant Date Fair Value 
Balance, February 28, 2021   —    — 
Granted   4,545,500   $6.46 
Vested   (909,000)  $6.46 
Balance, February 28, 2022   3,636,500   $6.46 
Granted   —    — 
Vested   —    — 
Balance, May 31, 2022   3,636,500   $6.46 

 

 

As at May 31, 2022, the aggregate intrinsic value of all outstanding stock options granted was estimated at $0 as the current price is lower than the strike price.

 

A summary of stock options outstanding and exercisable as at May 31, 2022 is as follows:

 

                                
    Options Outstanding   Options Exercisable 
Range of Exercise Prices  

Outstanding at

May 31, 2022

   Exercise Price  

Weighted Average Remaining

Contractual Term

(Years)

   Exercisable at May 31, 2022   Exercise Price  

Weighted Average Remaining

Contractual Term

(Years)

 
 $ 7.00 to $ 9.00    4,545,500   $8.00    4.58    909,000   $8.00    4.58 
                                 
      4,545,500   $8.00    4.58    909,000   $8.00    4.58