Quarterly report pursuant to Section 13 or 15(d)

COMMON SHARES

v3.22.1
COMMON SHARES
6 Months Ended
Dec. 31, 2021
Shareholders' Equity  
7. Common Shares

NOTE 7 – COMMON SHARES

 

Common Stock

 

At December 31, 2021, the Company’s authorized capital consisted of 50,000,000 of common shares with a $0.001 par value and 24,996,044 shares were issued and outstanding.

 

During the six-month period ended December 31, 2021, the Company incurred the following transactions:

 

During the six-month period ended December 31, 2021, the Company completed various private placements whereby a total of 5,458,810 common shares were issued at a price of $0.25 and 100,000 common shares were issued at a price of $0.50 per share for a total value of $1,425,202.

 

During the six-month period ended December 31, 2021, the Company issued 68,673 common shares for services valued at $51,289.

 

During the six-month period ended December 31, 2021, the Company issued 134,899 common shares valued at $103,961 for prepaid contractor and consultant expenses.

 

On December 31, 2021, the Company issued 937,151 common shares for the conversion of debt at a conversion price of $0.10 per share for a total value of $93,715. (Note 8)

 

During the six-month period ended December 31, 2020, the Company incurred the following transactions:

 

During the period from July 2, 2020 to July 31, 2020, the Company completed various private placements whereby a total of 500,000 common shares were issued at a price of $0.05 per share for a total value of $25,000.

 

During the period from November 24, 2020 to December 11, 2020, the Company completed various private placements whereby a total of 54,000 common shares were issued at a price of $0.25 per share for a total value of $13,500.

 

On December 28, 2020, the Company issued 110,000 shares to a non-related party at a price of $0.10 per share for a total value of $11,000 as commitment shares in exchange for services related to the issuance of convertible debt on Note 8 (c).

 

Warrants

 

On December 28, 2020, the Company granted 1,100,000 warrants with a contractual life of two years and exercise price of $0.25 per share to a lender as part of the convertible debt financing transaction (Note 8 (b)). The warrants were valued at $145,744 using the Black Scholes Option Pricing Model.

 

On March 25, 2021, the Company granted 1,100,000 warrants with a contractual life of two years and exercise price of $0.25 per share to a lender as part of the convertible debt financing transaction (Note 8 (c)). The warrants were valued at $147,266 using the Black Scholes Option Pricing Model.

On April 22, 2021, the Company granted 506,838 warrants with a contractual life of two years and exercise price of $0.25 per share to a lender as part of the convertible debt financing transaction (Note 8 (a)). The warrants were valued at $399,087 using the Black Scholes Option Pricing Model.

 

On April 28, 2021, the Company granted 307,408 warrants with a contractual life of two years and exercise price of $0.25 per share to a lender as part of the convertible debt financing transaction (Note 8 (a)). The warrants were valued at $196,399 using the Black Scholes Option Pricing Model.

 

The Black Scholes Option Pricing Model assumptions used in the valuation of the warrants are outlined below. The stock price was based on recent issuances. Expected life was based on the expiry date of the warrants as the Company did not have historical exercise data of such warrants.

 

 

 

June 30, 2021

 

Stock price

 

$0.85 - $0.25

 

Risk-free interest rate

 

0.13%-0.17

Expected life

 

2 Years

 

Expected dividend rate

 

 

0

 

Expected volatility 

 

102.03% - 206.63

 

Continuity of the Company’s common stock purchase warrants issued and outstanding is as follows:

 

 

Number

of

Warrants

 

 

Weighted

Average

Exercise

Price

 

Outstanding, June 30, 2020

 

 

-

 

 

$ -

 

Granted

 

 

3,014,246

 

 

 

0.25

 

Exercised

 

 

-

 

 

 

-

 

Expired

 

 

-

 

 

 

-

 

Outstanding, June 30, 2021 and December 31, 2021

 

 

3,014,246

 

 

$ 0.25

 

 

As at December 31, 2021, the weighted average remaining contractual life of warrants outstanding was 0.71 years with an intrinsic value of $0.25.