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PIPE Financing - Private Placement and Warrants
 12 Months Ended
Mar. 31, 2025
PIPE Financing Private Placement and Warrants [Abstract]  
PIPE Financing - Private Placement and Warrants

14. PIPE Financing - Private Placement and Warrants

 

Private placement

 

On December 24, 2024, the Company completed a private placement with HC Wainwright & Co., LLC (“HCW”), raising gross proceeds of $2,000,000 through the issuance of:

 

●47,679 common shares,

 

●77,792 pre-funded warrants (each exercisable into one common share at a nominal exercise price of $0.000797), and

 

●250,942 common share purchase warrants, comprising:

 

o125,471 warrants with an exercise price of $15.94 and a 5-year term (expiring December 24, 2029), and

 

o125,471 warrants with an exercise price of $15.94 and a 2-year term (expiring December 24, 2026).

 

The proceeds were allocated between the common shares and the warrants based on their relative fair values on the date of issuance. The fair value allocation was as follows:

 

Fair value allocation    
Component  Allocated Amount 
Common shares  $313,628 
Pre-funded warrants  $511,690 
Warrants  $1,174,682 
Total gross proceeds  $2,000,000 

Fair value allocation assumptions

 

The common shares were estimated using the share price on date of issuance - $19.37.

 

The pre-funded warrants and the warrants were estimated using a Black Scholes valuation model using the following estimates:

 

   Pre-funded
warrants		   Warrants with
5 year expiry		   Warrant with
2 year expiry		 
Share price  $19.37   $19.37   $19.37 
Expected dividend yield   Nil    Nil    Nil 
Exercise price  $0.00   $15.94   $15.94 
Risk-free interest rate   3.63%   3.63%   3.63%
Expected life   
-
    5.00    2.00 
Expected volatility   100%   100%   100%
Expiry date   -    December 24, 2029    December 24, 2026 

 

Share Issuance Costs

 

The Company incurred $257,949 in cash settled share issuance costs, which were allocated proportionately to the equity instruments issued. The portion related to the common shares, $40,449, was deducted from share capital, and the portion related to the warrants, $217,500, was deducted from the warrant reserve. The Company also incurred $137,778 in warrant settled issuance costs, 9,409 warrants, which was allocated to warrant reserve.

 

Pre-funded Warrant Exercise

 

During the year ended March 31, 2025, all 77,792 pre-funded warrants were exercised. An amount of $511,690, representing the fair value originally allocated to the pre-funded warrants, was reclassified from warrant reserve to share capital upon exercise. An amount of $66,003 of share issuance costs was reallocated to share capital upon exercise.

 

All instruments issued in the private placement were classified as equity instruments, as they did not contain any contractual obligations to deliver cash or other financial assets and met the fixed-for-fixed condition.