Quarterly report pursuant to Section 13 or 15(d)

Share Capital

v3.22.1
Share Capital
 3 Months Ended
Mar. 31, 2022
Equity [Abstract]  
Share Capital
Note 6—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 months ended March 31, 2022 and 2021.
(b) Warrants
The following table summarizes certain information in respect of the Company’s warrants:
 
    
March 31, 2022
  
    
Units
     
Weighted Average Exercise
Price (C$)
  
Warrants outstanding, beginning      22,640      $ 3.56  
Granted      —          —    
Exercised      —          —    
Expired      (4,685 )       7.53  
    
 
 
     
 
 
  
Warrants outstanding, ending   
 
17,955
 
   
$
2.49
 
    
 
 
     
 
 
  
As of March 31, 2022 and December 31, 2021, warrants classified as derivative liabilities on the unaudited interim condensed consolidated balance sheets were revalued with the following inputs:
 
    
March 31, 2022
    
December 31, 2021
  
Risk-free interest rate
      0.9 %      0.9 % 
Expected dividend yield
      0.0 %      0.0 % 
Expected volatility
     
124.0 -137.1
 %     
93.7 -297.1
 % 
Expected life
      0.9 years       0.9 years  
The Company uses an expected volatility based on its historical trading data.
The revaluation of the warrants classified as derivative liabilities resulted in a fair value of less than $0.1 million for these instruments as of March 31, 2022 (December 31, 2021 – less than $0.1 million). As a result of the revaluation, the Company recognized a gain of less than $0.1 million for the three months ended March 31, 2022 (March 31, 2021 – loss of less than $0.1 million), on the unaudited interim condensed consolidated statements of operations.
Full share equivalent warrants outstanding and exercisable are as follows:
 
    
March 31, 2022
     
December 31, 2021
  
Year of expiration
   
Number
Outstanding
     
Weighted Average
Exercise Price (C$)
     
Number
Outstanding
     
Weighted Average
Exercise Price (C$)
  
2022      16,170        2.26        20,855        3.47  
2023      1,785        4.57        1,785        4.57  
    
 
 
     
 
 
     
 
 
     
 
 
  
Warrants outstanding   
 
17,955
 
   
$
 2.49
 
   
 
22,640
 
   
$
 3.56
 
    
 
 
     
 
 
     
 
 
     
 
 
  
(c) Potentially Dilutive Securities
The following table summarizes potentially dilutive securities, and the resulting common share equivalents outstanding as of March 31, 2022 and December 31, 2021:
 
    
March 31, 2022
     
December 31, 2021
  
Common share options      9,620        10,504  
Warrants      17,955        22,640  
Secured notes      46,458        46,458  
Debentures      10,135        10,135  
MPX dilutive instruments
(1)
      408        408  
    
 
 
     
 
 
  
Total   
 
84,576
 
   
 
90,145
 
    
 
 
     
 
 
  
 
(1)
Prior to the acquisition of MPX Bioceutical Corporation (“MPX”) on February 5, 2019 (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 March 31, 2022, this would amount to 18.4 million common shares (December 31, 2021 – 16.4 million common shares).
(d) Stock Options
The following table summarizes certain information in respect of option activity under the Company’s stock option plan:
 
    
March 31, 2022
     
December 31, 2021
  
    
Units
    
Weighted
Average
Exercise
Price
(C$)
     
Weighted
Average
Contractual
Life
     
Units
    
Weighted
Average
Exercise
Price
(C$)
     
Weighted
Average
Contractual
Life
  
Options outstanding, beginning      10,504     $  4.95        —          11,510     $  4.86        —    
Granted      —         —          —          —         —          —    
Exercised      —         —          —          —         —          —    
Forfeited/Expired      (884 )      4.79        —          (1,006 )      3.96        —    
    
 
 
    
 
 
     
 
 
     
 
 
    
 
 
     
 
 
  
Options outstanding, ending   
 
9,620
 
  
$
4.96
 
   
 
5.97
 
   
 
10,504
 
  
$
4.95
 
   
 
6.24
 
    
 
 
    
 
 
     
 
 
     
 
 
    
 
 
     
 
 
  
 
The related share-based compensation expense for the three months ended March 31, 2022 was $1.5 million (March 31, 2021—$1.6 million), and is presented in selling, general and administrative expenses on the unaudited interim condensed consolidated statements of operations.
As of March 31, 2022, the weighted average period over which compensation cost on
non-vested
stock options is expected to be recognized is 0.5 years and the unrecognized expense is
$
0.4 million.