Quarterly report pursuant to Section 13 or 15(d)

Share Capital

v3.21.2
Share Capital
 9 Months Ended
Sep. 30, 2021
Equity [Abstract]  
Share Capital
Note 5 - Share Capital
 
 
(a)
Share Capital
Authorized: Unlimited common shares. The shares have no par value.
The Company’s common shares are voting and dividend-paying. There were no common share issuances for the three and nine months ended September 30, 2021.
The following is a summary of the common share issuances for the three and nine months ended September 30, 2020:
 
  •  
75 common shares of the Company were issued to settle outstanding obligations, with share issuance costs of $0.2 million.
 
 
(b)
Warrants
The following table summarizes certain information in respect of the Company’s warrants:
 
    
September 30, 2021
  
    
Units
     
Weighted Average

Exercise Price (C$)
  
Warrants outstanding as of December 31, 2020
      49,236      $ 4.06  
Granted
      —          —    
Exercised
      —          —    
Expired
      (26,577 )       4.21  
    
 
 
     
 
 
  
Warrants outstanding as of September 30, 2021
   
 
22,659
 
   
$
3.57
 
    
 
 
     
 
 
  
As of September 30, 2021 and December 31, 2020, warrants classified as derivative liabilities on the unaudited interim condensed consolidated balance sheets were revalued with the following inputs:
 
    
September 30, 2021
    
December 31, 2020
  
Risk-free interest rate
      0.5 %      0.2 % 
Expected dividend yield
      0.0 %      0.0 % 
Expected volatility
     
67.4 - 186.1
 %     
148.0 - 251.1
 % 
The revaluation of the warrants classified as derivative liabilities resulted in a fair value of $0.3 million for these instruments as of September 30, 2021 (December 31, 2020 - $0.2 million). As a result of the revaluation, the Company recognized a loss of $0.2 million and $0.1 million for the three and nine months ended September 30, 2021, respectively (September 30, 2020 – $0.1 million and $4.9 million, respectively), on the unaudited interim condensed consolidated statements of operations.
Full share equivalent warrants outstanding and exercisable are as follows:
 
    
September 30, 2021
     
December 31, 2020
  
Year of expiration
   
Number
Outstanding
     
Weighted Average
Exercise Price (C$)
     
Number
Outstanding
     
Weighted Average
Exercise Price (C$)
  
2021
      19      $ 6.87        26,596      $ 4.37  
2022
      20,855        3.49        20,855        3.62  
2023
      1,785        4.57        1,785        4.57  
    
 
 
     
 
 
     
 
 
     
 
 
  
Warrants outstanding
   
 
22,659
 
   
$
3.57
 
   
 
49,236
 
   
$
4.06
 
    
 
 
     
 
 
     
 
 
     
 
 
  
 
 
(c)
Potentially Dilutive Securities
The following table summarizes potentially dilutive securities, and the resulting common share equivalents outstanding as of September 30, 2021:
 
    
September 30, 2021
     
December 31, 2020
  
Common share options
      10,543        11,510  
Warrants
      22,659        49,236  
Secured notes
      46,458        46,458  
Debentures
      10,135        10,135  
MPX dilutive instruments
(1)
      408        408  
    
 
 
     
 
 
  
Total
   
 
90,203
 
   
 
117,747
 
    
 
 
     
 
 
  
 
(1)
Prior to the MPX Acquisition, MPX had instruments outstanding that were potentially dilutive and as a result of the MPX Acquisition, the Company assumed certain of these instruments.
Total potentially dilutive securities does not include the shares that would potentially be issued upon conversion of the accrued interest on the Company’s long-term debt. As of September 30, 2021, this would amount to 14.2 million common shares (December 31, 2020 – 8.0 million common shares).
 
 
(d)
Stock Options
The following table summarizes certain information in respect of option activity under the Company’s stock option plan:
 
    
September 30, 2021
     
December 31, 2020
  
    
Units
    
Weighted
Average
Exercise
Price
(C$)
     
Weighted
Average
Contractual
Life
     
Units
    
Weighted
Average
Exercise
Price
(C$)
     
Weighted
Average
Contractual
Life
  
Options outstanding, beginning
      11,510     $ 4.86        —          19,578     $ 4.80        —    
Granted
      —         —          —          135       0.82        —    
Exercised
      —         —          —          —         —          —    
Forfeited/Expired
      (967 )      3.99        —          (8,203 )      4.99        —    
    
 
 
    
 
 
     
 
 
     
 
 
    
 
 
     
 
 
  
Options outstanding, ending
   
 
10,543
 
  
$
4.94
 
   
 
6.22
 
   
 
11,510
 
  
$
4.86
 
   
 
7.34
 
    
 
 
    
 
 
     
 
 
     
 
 
    
 
 
     
 
 
  
The related share-based compensation expense for the three and nine months ended September 30, 2021 was $1.6 million and $4.9 million, respectively (September 30, 2020 - $1.7 million and $9.4 million, respectively), and is presented in the selling, general and administrative expenses line on the unaudited interim condensed consolidated statements of operations.
As of September 30, 2021, the weighted average period over which compensation cost on
non-vested
stock options is expected to be recognized is 0.6 years and the unrecognized expense is $3.5 million.