My Bad, I forgot to check statement for share structureShare capital a) Authorized share capital The authorized share capital consisted of unlimited number of common shares. The common shares do not have a par value. All issued shares are fully paid. - 9 - Therma Bright Inc. Notes to Condensed Interim Financial Statements Three Months Ended October 31, 2020 (Expressed in Canadian Dollars) Unaudited 9. Share capital (continued) b) Common shares issued Number of common shares Amount Balance, July 31, 2019 and October 31, 2019 16,355,622 $ 10,967,538 Balance, July 31, 2020 164,755,622 $ 12,107,232 Private placement (i) 16,666,667 262,625 Fair value of warrants issued (i) - (948,000) Costs of issuance - (13,600) Warrants exercised 800,000 118,000 Stock options exercised 9,075,000 1,394,315 Shares to Orpheus (ii) 1,000,000 175,000 Shares issued for debt settlement (iii) 4,625,000 370,000 Balance, October 31, 2020 196,922,289 $ 13,465,572
i) On August 5, 2020, the Company completed the closing of a non-brokered private placement of 16,666,667 units for gross proceeds of $1,250,000. Each Unit comprised of one common share of the Company and one half (0.5) of one common share purchase warrant, and each whole warrant will be exercisable for one additional common share of the Company at a price of $0.15 for a period of 6 months from the closing date of the private placement. The 8,333,333 warrants were assigned a value of $948,000 using the Black Scholes valuation model with the following assumptions: expected dividend yield of 0%; share price of $0.20; expected volatility of 189% based on historical trends; risk free interest rate of 0.18%; and an expected average life of 6 months. No finder's fee was paid in conjunction with the Offering. Insiders of the Company purchased a total of 2,866,667 units under the private placement.
ii) On August 13, 2020, as part of the binding letter of intent with Orpheus to partner in the development of a rapid saliva test for the detection of the virus (SARS CoV 2) causing COVID 19, the Company issued to Orpheus of 1,000,000 common shares and 1,000,000 warrants exercisable at $0.05 per share with a 5 year expiry. The shares were valued at 175,000 and the warrants were assigned a value of 172,000 using the Black Scholes valuation model with the following assumptions: expected dividend yield of 0%; share price of $0.175; expected volatility of 189% based on historical trends; risk free interest rate of 0.43%; and an expected average life of 60 months.
iii) On August 14, 2020, the Company settled aggregate debt of $370,000 outstanding as at June 30, 2020, in consideration for which it issued an aggregate of 4,625,000 common shares at a deemed price of $0.08 per share.
10. Warrant reserve The following table reflects the continuity of warrants for the periods presented: Weighted average Number of exercise warrants price Balance, July 31, 2019 and October 31, 2019 13,180,000 $ 0.09 Balance, July 31, 2020 7,380,000 $ 0.09 Issued (note 9) 9,333,333 0.14 Exercised (800,000) 0.10 Balance, October 31, 2020 15,913,333 $ 0.12 - 10 - Therma Bright Inc. Notes to Condensed Interim Financial Statements Three Months Ended October 31, 2020 (Expressed in Canadian Dollars) Unaudited 10. Warrant reserve (continued) The following table reflects the actual warrants issued as of October 31, 2020: Exercise Number of Issue date Expiry date price warrants April 27, 2018 April 26, 2021 $0.10 6,000,000 July 11, 2018 July 11, 2021 $0.10 580,000 August 5, 2020 February 5, 2021 $0.15 8,333,333 August 13, 2020 August 13, 2025 $0.05 1,000,000 Weighted average exercise price $0.12 15,913,333
Some of the warrants are subject to acceleration in the event the Company's common shares trade at or above certain share prices.
11. Stock options Under the Company's stock option plan, the Company may grant options to employees, consultants, officers and directors totaling up to 10% of its issued and outstanding common shares. The aggregate number of shares so reserved for issuance to any one person shall not exceed 5% of the issued and outstanding common shares. The following table reflects the continuity of stock options for the periods presented: Weighted Number of average stock options exercise price Balance, July 31, 2019 and October 31, 2019 13,015,000 $ 0.09 Balance, July 31, 2020 13,015,000 $ 0.09 Issued (i) (ii) 14,150,000 0.22 Exercised (9,075,000) 0.08 Balance, October 31, 2020 18,090,000 $ 0.19 i) On August 20, 2020, the Company granted of stock options to its directors, officers and consultants to purchase up to an aggregate of 13,950,000 common shares of the Company. The options are exercisable for a period of five years at a price of $0.22 per share and the options vested immediately. The estimated fair value of these options at the grant date was $2,553,000 using the Black-Scholes valuation model. During the three months ended October 31, 2020, $2,533,333 (three months ended October 31, 2019 - $nil) was expensed. The underlying weighted average assumptions used in the estimation of fair value in the Black-Scholes valuation model are as follows: risk free rate: 0.37%; expected life: 5.0 years; expected volatility: 189% based on historical trends; forfeiture rate: nil; expected dividend yield: 0%; and weighted average share price: $0.19. ii) On August 26, 2020, the Company granted of stock options to a director to purchase up to an aggregate of 200,000 common shares of the Company. The options are exercisable for a period of five years at a price of $0.22 per share. The options vest after 5 years from the date of grant. The estimated fair value of these options at the grant date was $33,000 using the Black-Scholes valuation model. During the three months ended October 31, 2020, $33,000 (three months ended October 31, 2019 - $nil) was expensed. The underlying weighted average assumptions used in the estimation of fair value in the Black-Scholes valuation model are as follows: risk free rate: 2.0%; expected life: 5.0 years; expected volatility: 189% based on historical trends; forfeiture rate: nil; expected dividend yield: 0%; and weighted average share price: $0.17. - 11 - Therma Bright Inc. Notes to Condensed Interim Financial Statements Three Months Ended October 31, 2020 (Expressed in Canadian Dollars) Unaudited 11. Stock options (continued) The following table reflects the actual stock options issued and outstanding as of October 31, 2020:
Weighted average Number of remaining Number of options Exercise contractual options vested Expiry date price ($) life (years) outstanding (exercisable) March 6, 2022 0.10
1.35 1,140,000 1,140,000 January 17, 2023 0.10 2.21 450,000 450,000 January 23, 2023 0.10 2.23 750,000 750,000 March 2, 2023 0.10 2.33 500,000 500,000 May 8, 2023 0.05 2.52 700,000 700,000 July 5, 2023 0.05 2.68 150,000 150,000 September 17, 2023 0.05 2.88 250,000 250,000 August 20, 2025 0.22 4.81 13,950,000 13,950,000 August 26, 2025 0.22 4.82 200,000 200,000 $0.19 4.22 18,090,000 18,090,000