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Issuances of Common Shares and Warrants
 6 Months Ended
Feb. 28, 2025
Issuances of Common Shares and Warrants  
Issuances of Common Shares and Warrants

12. Issuances of Common Shares and Warrants

 

During the six months ended February 28, 2025, the Company completed the following issuances of common shares and warrants:

 

1.

In February 2025, the Company sold 6,585 shares of common stock through an At the Market (ATM) offering for net proceeds of $11,720. Share issuance costs related to the ATM offering of $94,000 have been deferred pending termination of the offering.

 

 

2.

On January 7, 2025 the Company issued 100,000 Restricted Stock Awards (“RSA’s”) with a fair value of $224,000 and having a vesting period of six months to its Strategic Executive Consultant. 

 

3.

On October 16, 2024, the Company entered into a Securities Purchase Agreement whereby we issued 1,633,987 shares of common stock at a purchase price of $3.06 per share for gross and net proceeds of $5.0 million and $4.5 million, respectively.  Concurrently, the Company issued, by way of a private placement transaction, 4,551,019 share purchase warrants, entitling the holder thereof to purchase up to 4,551,019 shares of common stock at a price of $3.06 per share for a period of five years from January 14, 2025, the date of shareholder approval for such warrant issuance.  The shares registered pursuant to a take down of the Company’s Form S-3 registration statement and the warrants and related warrant shares were registered pursuant to a Form S-3 registration statement  As part of the terms and conditions of the warrant issuance, the sole investor agreed to cancel the 2,917,032 share purchase warrants bearing an exercise price of $4.75 that were issued to them in the April 30, 2024 financing.  We also issued the placement agent warrants to purchase up to 57,190 shares at an exercise price of $3.825 per share.  

 

 

4.

In October 2024, the Company sold 8,402 shares of common stock through an At the Market (ATM) offering for gross proceeds of $26,146. Share issuance costs related to the ATM offering of $144,812 were charged to additional paid in capital.

 

A continuity schedule for warrants for the six months ended February 28, 2025, is presented below:

 

 

 

Number of

Warrants

 

 

Weighted

Average

Exercise

Price $

 

Balance, August 31, 2024

 

 

5,931,649

 

 

 

5.50

 

Issued

 

 

4,608,209

 

 

 

3.07

 

Cancelled/Expired

 

 

(2,977,830 )

 

 

5.39

 

Balance, February 28, 2025

 

 

7,562,028

 

 

 

4.06

 

A summary of warrants outstanding as of February 28, 2025, is presented below:

 

Number of Warrants

 

 

Weighted Average Exercise Price ($)

 

 

Weighted Average Remaining

Contractual Life ~in years~

 

 

 

 

 

 

 

 

 

 

317,190

 

 

 

10.50

 

 

0.18-0.20

 

 

16,667

 

 

 

9.00

 

 

 

0.04

 

 

1,719,828

 

 

 

6.58

 

 

 

0.88

 

 

483,750

 

 

 

0.95

 

 

 

3.20

 

 

314,287

 

 

 

2.31

 

 

 

3.97

 

 

102,097

 

 

 

5.94

 

 

 

3.97

 

 

4,551,019

 

 

 

3.06

 

 

 

4.88

 

 

57,190

 

 

 

3.83

 

 

 

4.88

 

 

7,562,028

 

 

$4.06

 

 

 

3.60

 

 

Stock Options

 

The Company established an Equity Incentive Plan whereby our Board, pursuant to shareholder approved amendments, may grant up to 1,745,259 stock options, restricted stock awards or restricted stock units to directors, officers, employees, and consultants with such number being increased to up to 10% of the issued share capital at the end of each calendar year, at the discretion of the board, pursuant to an evergreen formula.

 

Stock options currently granted must be exercised within five years from the date of grant or such lesser period as determined by the Company’s board of directors. The vesting terms of each grant are also set by the board of directors. The exercise price of an option is equal to or greater than the closing market price of the Company’s common shares on the date of grant.

 

A continuity schedule for stock options is presented below:

 

 

 

Options

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining Contractual

Term

(years)

 

 

Aggregate

Intrinsic

Value

 

Balance August 31, 2023

 

 

446,936

 

 

$3.32

 

 

 

3.25

 

 

$3,600

 

Cancelled/expired

 

 

(196,000 )

 

 

2.94

 

 

 

4.27

 

 

 

 

 

Exercised

 

 

(2,500 )

 

 

1.15

 

 

 

4.16

 

 

 

 

 

Granted

 

 

696,500

 

 

 

2.91

 

 

 

4.63

 

 

 

 

 

Balance August 31, 2024

 

 

944,936

 

 

$3.11

 

 

 

3.64

 

 

$971,959

 

Cancelled/expired

 

 

(16,667 )

 

 

16.50

 

 

 

-

 

 

 

-

 

Granted

 

 

142,000

 

 

 

2.91

 

 

 

2.58

 

 

 

-

 

Balance February 28, 2025 (outstanding)

 

 

1,070,269

 

 

$2.83

 

 

 

3.41

 

 

$38,400

 

Balance February 28, 2025 (exercisable)

 

 

838,269

 

 

$2.65

 

 

 

3.10

 

 

$38,400

 

 

On October 1, 2024, the Company granted a total of 62,000 options to two employees with an exercise price of $3.17 and a term of 5 years.

 

On November 27, 2024, the Company granted a total of 20,000 options to two Scientific Advisory Board members with an exercise price of $2.10 and a term of five years.

 

On December 9, 2024, the Company granted 10,000 options to a Scientific Advisory Board member with an exercise price of $2.42 and a term of 5 years.

 

On January 13, 2025, the Company granted an aggregate of 50,000 options to a Scientific Advisory Board member and a consultant with an exercise price of $2.07 and a term of 5 years.

 

The fair value of stock options granted in the six months ended February 28, 2025, were estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions:

 

February 28, 2025

Expected volatility

94-96

%

Risk-free interest rate

3.57-4.18

%

Expected life

2.50

years

Dividend yield

0.00

%

Estimated fair value per option

$1.21-$1.72

 

Stock-based compensation expense for the six-month periods ended February 28, 2025, and February 29, 2024, was $266,634 and $53,953, respectively.

 

As of February 28, 2025, the total unrecognized non-cash compensation costs are $678,493 related to 232,000 non-vested stock options with a $3.47 weighted average exercise price and the restricted stock award issued on January 7, 2025. These costs are expected to be recognized over a weighted average period of 1.77 years.