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WARRANTS
 12 Months Ended
Dec. 31, 2021
Warrants

18. WARRANTS

 

On May 10, 2021, the Company issued 632,053 warrants issued as share issuance costs pursuant to the IPO (Note 16). Each warrant permits the holder to purchase one common share of the Company through May 11, 2026 for $6.25 for 233,333 of the warrants, and $3.00 for 398,720 of the warrants. The issue date fair value of the warrants was estimated at $1.3 million using the Black Scholes option pricing model with the following weighted average assumptions: expected dividend yield of 0%; expected volatility of 100% based on comparable companies; risk-free interest rate of 0.91% and an expected life of 5 years.

 

In November 2021, the Company issued 5,750,000 warrants issued as part of the November 2021 unit offering (Note 16). Each warrant permits the holder to purchase one common share of the Company through November 18, 2026 for $3.75. The issue date fair value of the warrants was estimated at $8.7 million using the Black Scholes option pricing model with the following assumptions: expected dividend yield of 0%; expected volatility of 100% based on comparable companies; risk-free interest rate of 1.5% and an expected life of 5 years.

 

Related to the November 2021 unit offering, 460,000 warrants were issued to the underwriters and recorded as issuance costs to share capital. Each warrant permits the holder to purchase one common share of the Company through November 18, 2027 for $3.30. The issue date fair value of the warrants was estimated at $1.1 million using the Black Scholes option pricing model with the following assumptions: expected dividend yield of 0%; expected volatility of 100% based on comparable companies; risk-free interest rate of 1.5% and an expected life of 6 years.

 

The following tables show warrants outstanding as at December 31, 2021:

 

 

 

Number of warrants

 

 

Weighted average exercise price

 

 

 

Thousands

 

 

 

Balance, March 13, 2019

 

 

-

 

 

$-

 

Issued

 

 

2,333

 

 

 

0.15

 

Balance, December 31, 2019

 

 

2,333

 

 

$0.15

 

Issued

 

 

6,667

 

 

 

3.00

 

Balance, December 31, 2020

 

 

9,000

 

 

$2.26

 

Exercised

 

 

(6,509)

 

 

2.29

 

Cancelled/Expired

 

 

(600)

 

 

3.00

 

Issued

 

 

6,855

 

 

 

3.76

 

Balance, December 31, 2021

 

 

8,746

 

 

$3.37

 

 

Date of expiry

 

Warrants outstanding

 

 

Exercise price

 

 

Grant date fair value

 

 

Remaining life in years

 

 

 

Thousands

 

 

 $

 

 

Thousands of Dollars

 

 

 

March 15, 2022 (1)

 

 

417

 

 

$0.15

 

 

$4

 

 

 

0.20

 

July 23, 2021- July 20, 2022

 

 

2,119

 

 

 

3.00

 

 

 

1,397

 

 

 

0.38

 

November 18, 2026

 

 

5,750

 

 

 

3.75

 

 

 

8,706

 

 

 

4.88

 

November 18, 2027

 

 

460

 

 

 

3.30

 

 

 

1,055

 

 

 

5.88

 

 

 

 

8,746

 

 

$3.37

 

 

$11,162

 

 

 

3.65

 

 

(1)

See Note 26 for subsequent exercise of warrants.