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

Note 12 - Derivative Warrant Liabilities

v3.19.2
Note 12 - Derivative Warrant Liabilities
12 Months Ended
Mar. 31, 2019
Statement Line Items [Line Items]  
Disclosure of derivative financial instruments [text block]
12.
Derivative warrant liabilities:
 
The warrants issued as part of the public offering of units composed of Common Share and Common Share purchase warrants on both
May 9, 2018
and
May 14, 2018 (
see note
14
) are derivative liabilities (“Derivative Warrant Liabilities”) given the warrant indenture contains certain contingent provisions that allow for cash settlement.
 
Warrants issued as part of a public offering of units composed of class A share (Common Share) and Common Share purchase warrants on both
December 27, 2017
and
December 3, 2013
are derivative liabilities (“Derivative warrant liabilities”) given the currency of the exercise price is different from the Corporation’s functional currency.
 
The derivative warrant liabilities are measured at fair value at each reporting period and the reconciliation of changes in fair value is presented in the following tables:
 
    Warrant liabilities issued
May 2018
    Warrant liabilities issued
December 27, 2017
   
Warrant liabilities issued
December 3, 2013
1
 
    March 31,
2019
    March 31,
2018
    March 31,
2019
    March 31,
2018
    March 31,
2019
    March 31,
2018
 
    $     $     $     $     $     $  
Balance – beginning of period    
-
     
-
     
6,405
     
-
     
21
     
209
 
Issued during period    
4,272
     
-
     
-
     
5,873
     
-
     
-
 
Exercised during period    
(722
)    
-
     
-
     
-
     
-
     
-
 
Change in fair value of derivative warrant liabilities    
4,696
     
-
     
1,612
     
532
     
(21
)    
(188
)
Balance – end of period    
8,246
     
-
     
8,017
     
6,405
     
-
     
21
 
                                                 
Fair value per share issuable    
0.81
     
-
     
0.82
     
0.65
     
-
     
0.01
 
(
1
)
In order to obtain
one
Common Share,
10
warrants must be exercised. All unexercised warrants expired on
December 3, 2018.
 
The fair value of the derivative warrant liabilities was estimated using the Black-Scholes option pricing model and based on the following assumptions:
 
    Warrant liabilities issued
May 2018
    Warrant liabilities issued
December 27, 2017
   
Warrant liabilities issued
December 3, 2013
1
 
    March 31,
2019
    March 31,
2018
    March 31,
2019
    March 31,
2018
    March 31,
2019
    March 31,
2018
 
Exercise price   $
1.31
     
-
     
US $1.26
     
US $1.26
     
-
     
US $1.50
 
Share price   $
1.35
     
-
     
US $1.02
     
US $1.02
     
-
     
US $1.02
 
Risk-free interest    
1.52
%    
-
     
2.23
%    
2.56
%    
-
     
2.19
%
Estimated life (in years)    
4.11
     
-
     
3.75
     
4.75
     
-
     
0.68
 
Expected volatility    
94.58
%    
-
     
107.57
%    
95.15
%    
-
     
133.86
%
(
1
)
In order to obtain
one
Common Share,
10
warrants must be exercised. All unexercised warrants expired on
December 3, 2018.