| STOCK PURCHASE WARRANTS [Text Block] |
| 7. |
STOCK PURCHASE WARRANTS
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Year ended November 30, 2013
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On January 30, 2013, the Company issued a $199,342
(CAD $200,000)
6% convertible bridge loan with a term to July 30, 2013 issuance of the bridge loan, the Company issued detachable warrants to purchase
100,000
shares of the Company’s common stoc CAD$0.50
per share and a time to expiration of two years. The relative fair value allocated to warrants and credited to additional
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On March 14, 2013, the Company issued a $97,456
(CAD $100,000)
6% convertible bridge loan with a term to July 30, 2013 (the “Maturity Date”). In connection with the issuance of the bridge loan, the Company issued detachable warrants to purchase
50,000
shares of the Company’s common stock. The warrants have an exercise price of CAD$0.50
per share and a time to expiration of two years. The relative fair value allocated to warrants and credited to additional paid in capital was $11,269
(see note 15)
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On April 12, 2013, the Company issued a $197,355
(CAD $200,000)
6% convertible bridge loan with a term to July 30, 2013 (the “Maturity Date”). In connection with the issuance of the bridge loan, the Company issued detachable warrants to purchase
100,000
shares of the Company’s common stock. The warrants have an exercise price of CAD$0.50
per share and a time to expiration of two years. The relative fair value allocated to warrants and credited to additional paid in capital was $20,502
(see note 15)
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On May 14, 2013, the Company issued a $147,812
(CAD $150,000)
6% convertible bridge loan with a term to July 30, 2013 (the “Maturity Date”). In connection with the issuance of the bridge loan, the Company issued detachable warrants to purchase
75,000
shares of the Company’s common stock. The warrants have an exercise price of CAD$0.50
per share and a time to expiration of two years. The relative fair value allocated to warrants and credited to additional paid in capital was $21,520
(see note 15)
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Year ended November 30, 2012
On January 4, 2012, the board of directors issued warrants to a Company in which the Chief Operating officer has an interest in, to acquire a total of
800,000
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 assumptions:
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Risk free rate |
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2.00%
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Expected dividends |
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0%
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Forfeiture rate |
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0%
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Volatility |
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206.87%
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Market price of Company’s common stock on date of grant of options |
$ |
0.13
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Compensation expense |
$ |
100,148
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On March 9, 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. (see note 6)
On August 9, 2012, the board of directors issued warrants to a Company owned and controlled by a director, to acquire a total of
400,000
common shares. These warrants were issued at an exercise price of $0.20
per share with an expiry term of four years. The Company expensed stock based compensation cost of $75,013. 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 assumptions:
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Risk free rate |
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3.63%
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Expected dividends |
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0%
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Forfeiture rate |
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0%
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Volatility |
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183.31%
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Market price of Company’s common stock on date of grant of options |
$ |
0.20
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Compensation expense |
$ |
75,013
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On October 3, 2012, the board of directors issued warrants to a consultant, to acquire a total of
75,000
common shares. These warrants were issued at an exercise price of $0.42
per share with an expiry term of three years. The Company expensed stock based compensation cost of $28,911. 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 assumptions:
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Risk free rate |
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1.5%
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Expected dividends |
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0%
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Forfeiture rate |
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0%
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Volatility |
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199.60%
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Market price of Company’s common stock on date of grant of options |
$ |
0.42
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Compensation expense |
$ |
28,911
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On September 19, 2012 the board of directors approved the exchange of
905,000
stock options issued on January 4, 2012,
905,000
warrants on terms identical to the terms of the existing stock options in the Company effective October 8, 2012. (See note 6)
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Number of |
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Warrants |
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Exercise |
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Expiry |
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Granted |
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Prices |
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Date |
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$ |
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Outstanding at November 30, 2011 and average exercise price |
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1,289,000
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0.22
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Granted in year 2012 |
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800,000
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0.13
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1/4/2016 |
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Granted in year 2012* |
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850,000
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0.25
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6/30/2014 |
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Granted in year 2012 |
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400,000
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0.20
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8/9/2016 |
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Granted in year 2012 |
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75,000
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0.42
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10/2/2015 |
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Granted in year 2012* |
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905,000
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0.13
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1/4/2016 |
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Exercised |
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-
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-
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Forfeited |
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-
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-
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Expired |
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-
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-
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Cancelled |
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-
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-
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Outstanding at November 30, 2012 and average exercise price |
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4,319,000
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0.19
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Granted in year 2013 |
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100,000
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0.47
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1/30/2015 |
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Granted in year 2013 |
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50,000
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0.47
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3/14/2015 |
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Granted in year 2013 |
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100,000
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0.47
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4/12/2015 |
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Granted in year 2013 |
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75,000
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0.47
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5/14/2015 |
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Granted in year 2013 |
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898,645
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0.38
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8/27/2015 |
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Exercised |
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-
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-
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Forfeited |
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-
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-
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Expired |
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-
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-
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Cancelled |
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-
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-
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Outstanding at November 30, 2013 and average exercise price |
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5,542,645
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0.23
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Exercisable at November 30, 2013 |
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5,542,645
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0.23
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Exercisable at November 30, 2012 |
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4,319,000
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0.19
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* Total of
1,755,000
options were exchanged for
1,755,000
warrants on terms identical to the terms of the existing stock options in the Company
The warrants outstanding at the end of the year had a weighted average remaining contractual life as follows:
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2013 |
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2012 |
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(Years) |
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(Years) |
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Total outstanding warrants |
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1.6
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2.8
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Total exercisable warrants |
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1.6
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2.8
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