Allana potash july 31st 2013 ALLAN
A POTASH CORP.
Page
17
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
April 30, 2013 and 2012
(Unaudited)
(Presented in Canadian dollars)
12.
Reserves
(Continued)
Warrants (Continued)
In October 2011, the Company engaged BNP Paribas, as financial advisor for the arrangement and structuring of debt
financings for the construction of the Company’s Ethiopian potash proje
ct. As a part of consideration for providing financial
advisory services, the Company issued to BNP Paribas 1,400,000 common share purchase warrants of the Company. Each
wa
rrant is exercisable to acquire one common share of
the Company
at $0.94 per warrant
for a period of five years from the
date of issue; however, the warrants shall only vest and become exercisable upon the completion of various milestones. On
March 27, 2012, the first milestone was achieved and the first 500,000 warrants became fully vest
ed and exercisable.
The
s
econd tranche of 400,000 warrants became fully vested and exercisable on September 27, 2012.
The t
hird tranche
of
500,000 warrants
bec
a
me fully vested and exercisable
on December 27, 2012
.
The fair value of these warrants was est
imated on the date of grant using the Black
-
Scholes option pricing model with the
following assumptions: expected dividend yield of 0%, expected volatility of 126%, a risk
-
free interest rate of 1.57% and an
expected life of 4.56 years.
During
the
nine
mon
ths ended
April
3
0
, 201
3
, 1,035,000 warrants with an exercise price of $1.55 expired unexercised.
13.
Financial Instruments
Details of the significant accounting policies and methods adopted (including the criteria for recognition, the bases of
measurement,
and the bases for recognition of income and expenses) for each class of financial asset and financial
liability
are disclosed in Note
6
of the
audited
consolidated financial statements for the year ended July 31, 2012
.
The Company's financial assets and
financial liabilities as at
July 31, 2012 and
April
3
0
, 201
3
were as follows:
Loans and
receivables
Assets /
(liabilities) at fair
value through
profit or loss
Other financial
assets/
(liabilities)
Total
July 31, 2012
Cash and cash equivalents
8,656,411
$
40,475,962
$
-
$
49,132,373
$
Restricted cash
-
50,000
-
50,000
Amounts and other receivables
106,656
-
-
106,656
Other financial assets
-
1,000,000
-
1,000,000
Accounts payable and accrued liabilities
-
-
(2,875,798)
(2,875,798)
April 30, 2013
Cash and cash equivalents
2,675,938
$
18,875,280
$
-
$
21,551,218
$
Restricted cash
-
1,050,000
-
1,050,000
Amounts and other receivables
177,639
-
-
177,639
Other financial assets
-
1,000,000
-
1,000,000
Accounts payable and accrued liabilities
-
-
(4,327,143)
(4,327,143)
At
April
3
0
, 201
3
, there are no significant concentrations of credit risk for loans and receivables designated at fair value
through
profit
or
loss
. The carrying amount reflected above represents the Company’s maximum exposure to credit risk for
such loans and rece
ivables