Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Share capital

v3.20.1
Share capital
12 Months Ended
Dec. 31, 2019
Share capital  
Share capital

11.Share capital

Authorized share capital

Unlimited number of common shares without par value.

At December 31, 2019, the Company had 37,049,374 issued and outstanding common shares (December 31, 2018 – 32,332,343).

During the year ended December 31, 2019, the Company issued a total of 3,333,334(December 31, 2018 -8,028,521) common shares and Nil (December 31, 2018 - 5,411,900) transferrable warrants for gross proceeds of $16,090,029 (December 31, 2018 – 24, 091,775), and 140,070 (December 31,2018 – 207,000) common shares for service with fair value of $390,148 (December 31, 2018 – 1,033,611). Share issue costs related to these issuances was $1,390,932 (December 31, 2018 – 2,916,165). Upon the exercise of warrants, the Company issued 1,116,323 (December 31, 2018 – 294,232) common shares and received proceeds of $4,802,419( December 31, 2018 - 1,639,449). Upon the exercise of stock options, the Company issued 137,304(December 31, 2018 – 6,198) common shares and received proceeds of $74,101 (December 31, 2018 - 12,395). The Company cancelled 10,000 (December 31, 2018 - Nil) common shares with value of $50,192 (December 31, 2018 – Nil).

Basic and fully diluted loss per share

The calculation of basic and fully diluted loss per share for the year ended December 31, 2019 was based on the loss attributable to common shareholders of $30,742,311 (2018 - $10,038,145) and the weighted average number of common shares outstanding of 35,998,152 (2018- 26,582,664). Fully diluted loss per share did not include the effect of stock options and warrants as the effect would be anti-dilutive.

Stock options

The Company has adopted an incentive stock option plan, which provides that the Board of Directors of the Company may from time to time, in its discretion, grant to directors, officers, employees and technical consultants to the Company, non-transferable stock options to purchase common shares, provided that the number of common shares reserved for issuance will not exceed 30,000,000.  Such options will be exercisable for a period of up to 7 years from the date of grant. Options may be exercised no later than 90 days following cessation of the optionee’s position with the Company unless specific exercise extension approved by the Board.

Options granted vest based on terms and conditions set up in the option agreements.

On exercise, each option allows the holder to purchase one common share of the Company. 

The changes in options during the years ended December 31, 2019 and 2018 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

    

December 31, 2019

    

December 31, 2018

 

 

 

 

Weighted

 

 

 

Weighted

 

 

Number of 

 

 average exercise

 

Number of 

 

 average 

 

    

options

    

 price

    

options

    

exercise price

Options outstanding, beginning

 

4,756,174

 

$

2.73

 

28,598,750

 

$

0.40

Options granted

 

8,755,000

 

 

3.00

 

1,307,424

 

 

9.29

Options exercised

 

(137,304)

 

 

0.54

 

(6,198)

 

 

2.00

Options expired and forfeited

 

(190,555)

 

 

7.28

 

(143,802)

 

 

3.03

Options cancelled

 

(275,000)

 

 

11.75

 

(25,000,000)

 

 

0.37

Options outstanding, ending

 

12,908,315

 

$

2.07

 

4,756,174

 

$

2.73

 

Details of options outstanding as at December 31, 2019 are as follows:

 

 

 

 

 

 

 

 

 

 

 

    

 

    

 

    

Number of 

 

 

 

Weighted average  

 

Number of options 

 

options 

Exercise price

    

contractual life

    

outstanding

    

exercisable

$

0.30

 

2.45 years

 

2,045,455

 

2,045,455

$

0.30

 

2.62 years

 

229,545

 

229,545

$

0.80

 

2.94 years

 

621,013

 

621,013

$

0.80

 

3.18 years

 

12,500

 

11,979

$

2.00

 

3.47 years

 

12,500

 

11,197

$

2.00

 

4.13 years

 

344,576

 

323,527

$

2.00

 

4.61 years

 

50,000

 

30,212

$

9.60 USD

 

5.02 years

 

189,892

 

109,828

$

6.18 USD

 

5.61 years

 

175,000

 

126,565

$

1.53 USD

 

3.89 years

 

120,000

 

120,000

$

5.00 USD

 

3.92 years

 

352,834

 

352,834

$

3.40 USD

 

6.22 years

 

1,228,182

 

1,198,182

$

2.62 USD

 

2.48 years

 

700,000

 

 —

$

2.45 USD

 

6.60 years

 

1,250,000

 

520,834

$

2.53 USD

 

6.61 years

 

181,818

 

54,920

$

1.80 USD

 

6.80 years

 

120,000

 

20,000

$

1.91 USD

 

6.94 years

 

5,275,000

 

157,945

 

 

 

 

 

12,908,315

 

5,934,036

 

The weighted average grant date fair value of options granted during the year ended December 31, 2019 was $1.46 (2018‑ $2.27). The fair value was calculated using the Black-Scholes option pricing model using the following weighted average assumptions:

 

 

 

 

 

 

 

 

    

Year ended December 31, 2019

    

Year ended December 31, 2018

 

Expected life of options

 

3-5 years

 

5 years

 

Annualized volatility

 

62.29

%  

60

%

Risk-free interest rate

 

1.25% - 1.58

%

1.91% - 2.9

%

Dividend rate

 

 0

%  

 0

%

 

During the year ended December 31, 2019, the Company recognized stock-based compensation expense of $6,816,321 (2018 - $3,228,508;  2017 - $889,511 ).

Warrants

On exercise, each warrant allows the holder to purchase one common share of the Company.

The changes in warrants during the years ended December 31, 2019 and 2018 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

    

December 31, 2019

    

December 31, 2018

 

 

 

 

Weighted 

 

 

 

Weighted 

 

 

Number of 

 

average 

 

Number of 

 

average 

 

    

warrants

    

exercise price

    

warrants

    

exercise price

Warrants outstanding, beginning

 

22,369,718

 

$

5.03

 

11,856,857

 

$

4.70

Warrants issued

 

 —

 

 

 —

 

10,807,093

 

 

5.36

Warrants exercised

 

(1,116,322)

 

 

3.26

 

(294,232)

 

 

5.08

Warrants expired

 

(650,000)

 

 

19.93

 

 

 

 

 

Warrants outstanding, ending

 

20,603,396

 

$

4.64

 

22,369,718

 

$

5.03

 

At December 31, 2019, all warrants outstanding, except for 212,500 placement agents’ warrants, were exercisable. Details of warrants outstanding as at December 31, 2019 are as follows:

 

 

 

 

 

 

 

    

Weighted average 

    

Number of warrants

Exercise Price

 

contractual life

 

 outstanding

Non-Transferable Warrants

 

  

 

  

$0.80 CAD - $16.00 CAD

 

1.81 years

 

11,010,059

$2.00 USD - $24.00 USD

 

4.15 years

 

5,091,969

Transferable Warrants

 

 

 

 

$4.25 USD

 

3.61 years

 

4,501,368