The Company did not issue any stock purchase warrants during the year ended November 30, 2011.
Six months ended May 31, 2012
On January 4, 2012, the board of directors issued warrants to a corporation in which the Chief Operating officer has an interest in, to acquire a total of
common shares. These warrants were issued at an exercise price of $0.13
per share with an expiry term of four years. The Company expensed stock based compensation cost of $100,148. The fair value of each warrant used for the purpose of estimating the compensation expense is calculated using the Black-Scholes option pricing model with the following weighted average assumptions:
Risk free rate
Market price of Company’s common stock on date
of grant of options
On March 13, 2012, all of the issued and outstanding stock options for common shares in the Company’s capital stock previously issued to Elad, Ilan Shalev and Haim Danon (being principals of Elad) were exchanged into warrants on terms identical to the terms of the existing stock options in the Company. The Company thus cancelled
options having an exercise price of $0.25
per common share and expiring on June 30, 2014 and issued
warrants at exercise price of $0.25
per common share and expiring June 30, 2014.