Quarterly report pursuant to Section 13 or 15(d)

7. COMMON SHARES

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7. COMMON SHARES
6 Months Ended
Dec. 31, 2020
SHAREHOLDERS' EQUITY  
COMMON SHARES

At December 31, 2020, the Company’s authorized capital consisted of 50,000,000 of common shares with a $0.001 par value and 13,070,236 shares were issued and outstanding.

 

During the six-months ended December 31, 2020

 

Between July 2, 2020 and 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.

 

Between November 24, 2020 and 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 (b).

 

During the year ended June 30, 2020

 

On November 4, 2019, the Company issued 8,000,000 shares to the founders with a fair value of $8,000 in exchange for services.

 

On November 15, 2019, the Company issued 1,000,000 shares to two non-related parties with a fair value of $10,000 in exchange for services.

 

Between November 21, 2019 and June 30, 2020, the Company completed various private placements whereby a total of 3,406,236 common shares were issued at a price of $0.05 per share for a total value of $170,312.

 

Warrants

 

During the six-month period ended December 31, 2020, the Company granted an aggregate of 1,100,000 warrants with a contractual life of two years and exercise price of $0.25 per share to lenders as part of the convertible debt financing transaction (Note 8 (b)).

 

The warrants were valued at $0.13 per warrant, using the Black Scholes Option Pricing Model with the assumptions 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.

 

   

December 31,
2020

Stock price   $ 0.25  
Risk-free interest rate     1.06 %
Expected life     2 years  
Expected dividend rate     0 %
Expected volatility     102.03 %

 

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        1,100,000       0.25  
Exercised        —         —    
Expired       —         —    
Outstanding, December 31, 2020       1,100,000     $ 0.25  

 

As at December 31, 2020, the weighted average remaining contractual life of warrants outstanding was 1.99 years with an intrinsic value of $0.13.