FINANCIAL: Fiscal 2021+ MD&A NOTE 16 (Financials) :
INVESTMENT IN ONCOQUEST INC. During the three-month period ended April
30, 2020, the Company changed the method of accounting for its investment in OncoQuest Inc. For the year ended January 31, 2020, OncoQuest was treated as a subsidiary and consolidated into the financial statements of the Company. Subsequent to year end, commencing on February 1, 2020, Quest deconsolidated OncoQuest as a result of a loss of control (refer to Note 3) and OncoQuest is being treated as an equity investment using the equity method of accounting.
Quest’s owns 4,250,100 common shares of OncoQuest. Under IFRS, Quest is required to fair value these common shares at the time of the loss of control of OncoQuest. Based on a private placement of common shares of OncoQuest to third parties during the period at a price of USD20 per common share, Quest determined that the fair value of its investment in OncoQuest was $112,840,155 (USD85,002,000) at the time of the loss of control.
OncoQuest incurred a loss for the 3-month period ended April 30, 2020 of $18,514,016 (USD13,427,000). Quest, with a 43% ownership interest in OncoQuest at April 30, 2020, recorded an equity loss of $7,961,027 for the 3-month period ended April 30, 2020.
The Company’s equity investment in OncoQuest is as follows for the 3-month period ended April 30, 2020:
-$ Investment in OncoQuest at fair value 112,840,155
-Equity method share of loss for the 3 months ended April 30 2020 (7,961,027) Balance, April 30, 2020 104,879,128
Bottom line : Basic and diluted income / per share [financials note 7] $0.63
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