Complicated as hell. This will overhang the stock for 2 f'ing years. Fire the CFO and all financial advisors.  

On March 29, 2022, the Company issued 12,200,000 Units at a price of $0.12 per unit for gross proceeds totaling $2.568 million. Each Unit consists of one common share and one common share purchase warrant, with each warrant entitling the holder to purchase one additional common share at an exercise price of $0.175 in Year 1 and 2 and $0.20 in Year 3 after the date issuance. The shares were put into escrow as was the consideration for the shares. Monthly there will be a release of shares and cash as defined in the sharing agreement. (note 9). The fair value of the warrants is $630,120, estimated at the grant date based on the Black-Scholes pricing model, using the following assumptions: annualized volatility of 107.72%, risk-free interest rate of 2.34%, expected life of 3 years and a dividend rate of 0%.

On March 29, 2022, 1,104 Convertible Loan Notes in the principal amount of $1,000 per note, bearing an interest rate of 1% per annum. Each note is convertible into 8,333 common shares for a period of 36 months from the date of issuance. Conversion of the notes is limited to only when shares issued combined with the then current holdings of the holder will not take the holder above 9.9% ownership of the Company. Since the notes are to be settled in shares, the units are treated as equity. In addition, 4,600,368 Common share purchase warrants were issued, each warrant entitling the holder to purchase one additional common share at an exercise price of $0.175 in Year 1 and 2 and $0.20 in Year 3 after the date issuance. The fair value of the warrants is $475,211, estimated at the grant date based on the Black- Scholes pricing model, using the following assumptions: annualized volatility of 107.72%, risk-free interest rate of 2.34%, expected life of 3 years and a dividend rate of 0%. 


 




lscfa wrote:

The proceeds are "deferred". The jackasses did not disclose that in the March 24 NR.     

On March 29, 2022, and as part of a $2,400,000 net equity investment by Sorbie Bornholm LP comprising of deferred proceeds with a fair value on the date of acquisition of $2,400,000, the Company entered into agreements for the acquisition of 24 equity swaps for total consideration receivable of $2,400,000 ($200,000 for the first two swaps and $90,909 per equity swap for the remaining).
 
The equity swaps settle on a monthly basis over 24 months, and commenced on May 6, 2022, with one swap settling each month. The monthly settlement amount payable to the Company by the counter-party is determined by an independent settlement agent with the amount due calculated via reference to the average of the volume weighted average price of the Company’s shares as traded on the Canadian Securities Exchange for the twenty days preceding the settlement date (“VWAP”), compared to the benchmark price of $0.16. Each one cent difference between the VWAP and the benchmark price results in a $28,409 per month premium or discount to the amount to be received by the Company for the swap at settlement.


 

lscfa wrote:

 

See image. WTF is there no record of $2.5 million raise recorded?

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lscfa wrote: working capital at May 31 =   -$1,205,894.   Where the hell did the $2.5 million raise in March go?   Bozo mgmt.