Number of equivalent shares | Market-value per share price | Weighted average exercise price | Risk-free annual interest rate | Expected volatility | Expected life (years) | Expected dividend yield | |||||||||||||
($) | ($) | (a) | (b) | (c) | (d) | ||||||||||||||
July 2013 Warrants | 25,996 | 2.36 | 185.00 | 1.75 | % | 136.18 | % | 0.58 | 0.00 | % | |||||||||
March 2015 Series A Warrants (e) | 115,844 | 2.36 | 1.07 | 1.90 | % | 132.24 | % | 2.19 | 0.00 | % | |||||||||
December 2015 Warrants | 2,331,000 | 2.36 | 7.10 | 1.97 | % | 137.02 | % | 2.96 | 0.00 | % | |||||||||
November 2016 Warrants (f) | 945,000 | 2.36 | 4.70 | 1.91 | % | 145.04 | % | 2.34 | 0.00 | % | |||||||||
(a) | Based on United States Treasury Government Bond interest rates with a term that is consistent with the expected life of the warrants. |
(b) | Based on the historical volatility of the Company's stock price over the most recent period consistent with the expected life of the warrants, as well as on future expectations. |
(c) | Based upon time to expiry from the reporting period date. |
(d) | The Company has not paid dividends and it does not intend to pay dividends in the foreseeable future. |
(e) | For the March 2015 Series A Warrants, the inputs and assumptions applied to the Black-Scholes option pricing model have been further adjusted to take into consideration the value attributed to certain anti-dilution provisions. Specifically, the weighted average exercise price is subject to adjustment (see note 16 - Share capital). |
(f) | For the November 2016 Warrants, the Company reduced the fair value of these warrants to take into consideration the fair value of the $10 call option, which was also calculated using the Black-Scholes pricing model. (see note 16 - Share capital). |
Years ended December 31, | |||||||||
2017 | 2016 | 2015 | |||||||
$ | $ | $ | |||||||
Balance – Beginning of the year | 6,854 | 10,891 | 8,225 | ||||||
Share purchase warrants issued during the year (note 16) | — | 400 | 28,678 | ||||||
Derecognition due to early expiry (note 16) | — | — | (5,865 | ) | |||||
Share purchase warrants exercised during the year | (735 | ) | — | (31,103 | ) | ||||
Change in fair value of share purchase warrants | (2,222 | ) | (4,437 | ) | 10,956 | ||||
Balance - End of the year | 3,897 | 6,854 | 10,891 | ||||||
Less: current portion | — | — | (1,411 | ) | |||||
Non-current portion | 3,897 | 6,854 | 9,480 | ||||||