Annual report pursuant to Section 13 and 15(d)

WARRANTS

v3.8.0.1
WARRANTS
12 Months Ended
Mar. 31, 2018
Warrants and Rights Note Disclosure [Abstract]  
Shareholders Equity And Share Based Payments Stock Warrant [Text Block]
12.
WARRANTS
 
The following is a continuity schedule of the Company’s common share purchase warrants:
 
 
 
Number of Warrants
 
Weighted-Average
Exercise Price ($)
 
Outstanding and exercisable, March 31, 2015
 
 
10,823,450
 
 
1.35
 
Issued
 
 
7,225,625
 
 
1.35
 
Exercised
 
 
(148,787)
 
 
(0.80)
 
Outstanding and exercisable, March 31, 2016
 
 
17,900,288
 
 
1.35
 
Exercised
 
 
(262,045)
 
 
(0.80)
 
Outstanding and exercisable, March 31, 2017
 
 
17,638,243
 
 
1.35
 
Exercised
 
 
(5,000,172)
 
 
0.25
 
Issued in connection with anti-dilution provision connected warrant transaction
 
 
83,752
 
 
0.749
 
Issued in connection with anti-dilution provision connected warrant transaction
 
 
941,191
 
 
1.2933
 
Issued in connection to the warrant transaction to the broker
 
 
400,014
 
 
0.25
 
Issued in connection with conversion of loans and interest into common shares
 
 
16,006,322
 
 
0.0625
 
Issued in connection with conversion of loans and interest into common shares
 
 
2,348,587
 
 
0.60
 
Issued in connection with anti-dilution provision connected with issuance of common shares
 
 
20,458,058
 
 
0.4868
 
Issued in connection with anti-dilution provision connected with issuance of common shares
 
 
2,019,583
 
 
0.2952
 
Outstanding and exercisable, March 31, 2018
 
 
54,895,578
 
$
0.3546
 
 
During the year ended March 31, 2018, the Company consummated an offer to amend and exercise its then outstanding warrants, enabling the holders of the warrants to exercise such warrants for $0.25 per share. The Company received net proceeds of $1,125,038. The Company also converted loans and interest due.
 
Due to an anti-dilution clause in the warrant agreements for such outstanding warrants an additional 83,752 warrants were issued to the $0.80 warrant holders and 941,191 warrants were issued to the $1.40 warrant holders. Furthermore, as a result of the anti-dilution clause, the exercise price of the warrants changed from $0.80 to $0.749 and from $1.40 to $1.2933, as a result of this warrant transaction.
 
Due to an anti-dilution clause in the warrant agreements for such outstanding warrants an additional 2,019,583 warrants were issued to the $0.749 warrant holders and 20,458,058 warrants were issued to the $1.2933 warrant holders. Furthermore, as a result of the anti-dilution clause, the exercise price of the warrants changed from $0.749 to $0.2952 and from $1.2933 to $0.4868 as a result of loan and interest conversion transaction for shares that have been issued and shares that will be issued.
 
The Company measured the effects of the two above transactions, which triggered anti-dilution clause using the binomial tree model and recorded a loss of $74,086 against deficit.
 
The Company issued 400,014 warrants exercisable at $0.25 for four years expiring June 27, 2020 to the firm who facilitated the warrant offer.
 
The Company issued 2,348,587 warrants at $0.60 which expire in 5 years on March 31, 2023 and 16,006,322 warrants at $0.0625 which also expire March 31, 2023 in connection with the loan and interest conversion transaction.
 
During the year ended March 31, 2017, a warrant holder exercised 262,045 warrants on a cashless basis based on the terms of the warrant agreement and received 51,249 shares of common stock.
 
Common share purchase warrants
 
The following is a summary of common share purchase warrants outstanding after the warrant offer to amend and exercise the additional warrant issue and the re-pricing of the warrants as of March 31, 2018.
 
Exercise
Price ($)
 
Number of
Warrants
 
Expiry Date
 
 
0.60
 
 
2,348,587
 
March 31, 2023
 
 
0.4868
 
 
15,603,103
 
February 26, 2019
 
 
0.4868
 
 
3,265,093
 
March 27, 2019
 
 
0.4868
 
 
871,813
 
March 31, 2019
 
 
0.4868
 
 
6,759,081
 
April 21, 2019
 
 
0.4868
 
 
3,191,037
 
May 27, 2019
 
 
0.4868
 
 
3,117,199
 
June 30, 2019
 
 
0.2952
 
 
3,333,328
 
February 26, 2019
 
 
0.25
 
 
400,014
 
June 27, 2020
 
 
0.0625
 
 
9,603,842
 
August 14, 2022
 
 
0.0625
 
 
6,402,481
 
March 31, 2022
 
 
 
 
 
54,895,578
 
 
 
 
The weighted-average remaining contractual term of the outstanding warrants was 2.27 (March 31, 2017 – 1.77).
 
The exercise price and number of underlying shares with respect to the $0.4868 and $0.295 warrants are expected to be further adjusted pursuant to the anti-dilution provisions therein, as a result of any further issuance of common shares.
 
The Company was committed to issue to these third party previous lenders warrants exercisable into 349,522 Exchangeable Shares at an exercise price of $0.23 per share for a period ending March 21, 2017. During the year ended December 31, 2015, the Company issued these warrants.
 
Reclassification of Fair Value
 
As the Company does not have sufficient authorized shares of common stock to cover its warrants issued; a valuation of these warrants was done at March 31, 2018 and the resulting liability of $1,394,164 has been recorded in the consolidated balance sheets as shares to be issued, stock options and warrants. The 400,014 warrants at an exercise price of $0.25 issued in connection to the warrant transaction to the broker were not included in the fair value remeasurement, because there is sufficient capital to convert them into common stock if exercised.
 
Exercise
Price
($)
 
Number of
Warrants
 
Expiry Date
 
Expected life
(years)
 
Risk free
rate
 
Dividend
rate
 
Forfeiture
rate
 
Expected
volatility
 
Remeasured
fair value
 
 
0.6
 
 
2,348,587
 
31-Mar-23
 
 
5
 
 
1.59
%
 
0
%
 
0
%
 
135
%
 
116,142
 
 
0.4868
 
 
15,603,103
 
26-Feb-19
 
 
0.92
 
 
1.59
%
 
0
%
 
0
%
 
135
%
 
100,281
 
 
0.4868
 
 
3,265,093
 
27-Mar-19
 
 
1
 
 
1.59
%
 
0
%
 
0
%
 
135
%
 
24,815
 
 
0.4868
 
 
871,813
 
31-Mar-19
 
 
1
 
 
1.59
%
 
0
%
 
0
%
 
135
%
 
6,769
 
 
0.4868
 
 
6,759,081
 
21-Apr-19
 
 
1.08
 
 
1.59
%
 
0
%
 
0
%
 
135
%
 
58,358
 
 
0.4868
 
 
3,191,037
 
27-May-19
 
 
1.16
 
 
1.59
%
 
0
%
 
0
%
 
135
%
 
32,276
 
 
0.4868
 
 
3,117,199
 
30-Jun-19
 
 
1.25
 
 
1.59
%
 
0
%
 
0
%
 
135
%
 
36,116
 
 
0.2952
 
 
3,333,328
 
26-Feb-19
 
 
0.92
 
 
1.59
%
 
0
%
 
0
%
 
135
%
 
38,423
 
 
0.0625
 
 
9,603,842
 
14-Aug-22
 
 
4.38
 
 
1.59
%
 
0
%
 
0
%
 
135
%
 
593,355
 
 
0.0625
 
 
6,402,481
 
31-Mar-22
 
 
4
 
 
1.59
%
 
0
%
 
0
%
 
135
%
 
387,529
 
 
 
 
 
54,495,564
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,394,164
 
 
Exchangeable share purchase warrants
 
In 2014, the Company repaid loans of $180,940 plus accrued interest of $12,138 owing to investors introduced by Pope and Co. As part of this transaction in March 2017, 174,759 warrants were exercised for proceeds of $40,195 and the remaining 174,763 warrants expired.