Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document - Document and Entity Information [Abstract] | |
Document Type | 40-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | CRON |
Entity Registrant Name | Cronos Group Inc. |
Entity Central Index Key | 1,656,472 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Common Stock, Shares Outstanding | 149,360,603 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CAD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current | ||
Cash | $ 9,208 | $ 3,464 |
Accounts receivable | 1,140 | 107 |
Sales tax receivable | 3,114 | |
Prepaids and other receivables | 790 | 503 |
Biological assets | 3,722 | 1,795 |
Inventory | 8,416 | 1,908 |
Loans receivable | 314 | 309 |
Current assets | 26,704 | 8,086 |
Investment in Whistler | 3,807 | 2,566 |
Other investments | 1,347 | 5,127 |
Property, plant and equipment | 56,172 | 14,122 |
Intangible assets | 11,207 | 11,207 |
Goodwill | 1,792 | 1,792 |
Assets | 101,029 | 42,900 |
Current | ||
Accounts payable and other liabilities | 7,878 | 1,176 |
Purchase price liability | 2,590 | |
Mortgage payable | 4,000 | |
Current liabilities | 7,878 | 7,766 |
Construction loan payable | 5,367 | |
Deferred income tax liability | 1,416 | 1,457 |
Liabilities | 14,661 | 9,223 |
Shareholders' Equity | ||
Share capital | 83,559 | 33,590 |
Warrants | 3,364 | 3,983 |
Share-based reserve | 2,289 | 735 |
Accumulated deficit | (3,724) | (6,215) |
Accumulated other comprehensive income | 880 | 1,584 |
Equity | 86,368 | 33,677 |
Equity and liabilities | 101,029 | 42,900 |
Going concern | ||
Commitments and contingencies | ||
Subsequent events |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Profit or loss [abstract] | ||
Product sales | $ 4,082 | $ 554 |
Cost of sales | ||
Inventory expensed to cost of sales | 4,489 | 384 |
Production costs | 3,983 | 356 |
Unrealized gain on revaluation of biological assets | (11,620) | (2,179) |
Total recovery of cost of sales | (3,148) | (1,439) |
Gross profit | 7,230 | 1,993 |
Operating expenses | ||
General and administration | 6,935 | 3,435 |
Stock-based payments | 1,862 | 307 |
Depreciation | 541 | 382 |
Total operating expenses | 9,338 | 4,124 |
Operating loss | (2,108) | (2,131) |
Other income (expense) | ||
Interest expense | (126) | (232) |
Share of income from Whistler investment | 165 | 163 |
Gain (loss) on other investments | 4,858 | (310) |
Reversal of impairment loss on loan receivable | 725 | |
Other income | 27 | |
Total other income | 4,897 | 373 |
Income (loss) before income taxes | 2,789 | (1,758) |
Income tax expense (recovery) | 298 | (568) |
Net income (loss) | 2,491 | (1,190) |
Other comprehensive income | ||
Gain on revaluation of other investments, net of tax | 947 | 1,584 |
Unrealized gains reclassified to net income | (1,651) | |
Comprehensive income | $ 1,787 | $ 394 |
Net income (loss) per share | ||
Basic | $ 0.02 | $ (0.02) |
Diluted | $ 0.01 | $ (0.02) |
Weighted average number of outstanding shares | ||
Basic | 134,803,542 | 78,248,192 |
Diluted | 176,789,161 | 78,248,192 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity $ in Thousands | CAD ($) | Issued capital [member]CAD ($)shares | Warrants [member]CAD ($) | Contributed surplus [member]CAD ($) | Accumulated deficit [member]CAD ($) | Accumulated other comprehensive income [member]CAD ($) |
Balance at Dec. 31, 2015 | $ 11,703 | $ 14,800 | $ 1,329 | $ 599 | $ (5,025) | |
Balance, shares at Dec. 31, 2015 | shares | 42,618,971 | |||||
Shares issued | 20,928 | $ 18,096 | 2,832 | |||
Shares issued, shares | shares | 75,289,565 | |||||
Share issuance costs | (162) | $ (162) | ||||
Vesting of options | 178 | 178 | ||||
Options exercised | 103 | $ 145 | (42) | |||
Options exercised, shares | 402,788 | |||||
Warrants exercised | 418 | $ 596 | (178) | |||
Warrants exercised, shares | 2,264,424 | |||||
Conversion of convertible loans payable | 115 | $ 115 | ||||
Conversion of convertible loans payable, shares | shares | 1,150,000 | |||||
Net income | (1,190) | (1,190) | ||||
Other comprehensive income | 1,584 | $ 1,584 | ||||
Balance at Dec. 31, 2016 | 33,677 | $ 33,590 | 3,983 | 735 | (6,215) | 1,584 |
Balance, shares at Dec. 31, 2016 | shares | 121,725,748 | |||||
Shares issued | 49,594 | $ 49,594 | ||||
Shares issued, shares | shares | 19,852,301 | |||||
Share issuance costs | (2,767) | $ (2,767) | ||||
Vesting of options | 1,862 | 1,862 | ||||
Options exercised | 591 | $ 899 | (308) | |||
Options exercised, shares | 571,246 | |||||
Warrants exercised | 1,624 | $ 2,243 | (619) | |||
Warrants exercised, shares | 7,211,308 | |||||
Unrealized gains reclassified to net income | (1,651) | (1,651) | ||||
Net income | 2,491 | 2,491 | ||||
Other comprehensive income | 947 | 947 | ||||
Balance at Dec. 31, 2017 | $ 86,368 | $ 83,559 | $ 3,364 | $ 2,289 | $ (3,724) | $ 880 |
Balance, shares at Dec. 31, 2017 | shares | 149,360,603 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | ||
Net income (loss) | $ 2,491 | $ (1,190) |
Items not affecting cash: | ||
Stock-based payments | 1,862 | 307 |
Depreciation | 996 | 382 |
Share of income from investment in Whistler | (165) | (163) |
Loss (gain) on other investments | (4,858) | 310 |
Reversal of impairment loss on loan receivable | (725) | |
Deferred income tax expense (recovery) | 298 | (568) |
Cash flows from used in operations before changes in working capital | 624 | (1,647) |
Net changes in non-cashworking capital: | ||
Increase in accounts receivable | (1,033) | (57) |
Increase in sales tax receivable | (3,114) | |
Increase in prepaids and other receivables | (287) | (376) |
Increase in biological assets | (1,927) | (714) |
Increase in inventory | (6,508) | (929) |
Increase in accrued interest on loan receivable | (5) | (7) |
Increase (decrease) in accounts payable and other liabilities | 6,702 | (2,746) |
Cash flows used in operating activities | (5,548) | (6,476) |
Investing activities | ||
Cash acquired from Peace Naturals | 109 | |
Advances of loans receivable to Peace Naturals prior to acquisition | (771) | |
Receipts of loans receivable | 423 | |
Acquisition of Peace Naturals | (6,248) | |
Repayment of purchase price liability | (2,590) | |
Investment in Whistler | (1,076) | |
Dividends received from Whistler investment | 2 | |
Proceeds from sale of other investments | 10,879 | |
Acquisition of additional shares in AbCann | (1,016) | |
Payment to exercise AbCann warrants | (2,268) | |
Purchase of property, plant and equipment | (42,701) | (1,523) |
Cash flows used in investing activities | (38,772) | (8,008) |
Financing activities | ||
Repayment of deposit payable | (200) | |
Repayment of promissory note payable | (950) | |
Repayment of loans | (2,689) | |
Repayment of mortgage payable | (4,000) | (500) |
Proceeds from construction loan payable | 6,304 | |
Transaction costs paid on construction loan payable | (1,282) | |
Proceeds from exercise of warrants | 1,624 | 418 |
Proceeds from issuance of warrants | 2,832 | |
Proceeds from exercise of options | 591 | 104 |
Proceeds from issuance of shares | 49,594 | 17,968 |
Share issuance costs | (2,767) | (162) |
Cash flows provided by financing activities | 50,064 | 16,821 |
Net change in cash | 5,744 | 2,337 |
Cash - beginning of year | 3,464 | 1,127 |
Cash - end of year | 9,208 | 3,464 |
Supplemental cash flow information | ||
Interest received | 22 | 48 |
Interest paid | $ 200 | $ 294 |
Nature of business
Nature of business | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Nature of business | 1. Nature of business Cronos Group Inc. (“ Cronos Company Business Corporations Act (Ontario) “TSX-V” Hortican Inc. (“ Hortican Canada Business Corporations Act “ CBCA “ Cronos operates two wholly owned Licensed Producers, namely Peace Naturals Project Inc. ( “Peace Naturals” “OGBC” OGBC was incorporated as In the Zone Produce Ltd. (“ In the Zone Business Corporations Act (British Columbia) CBCA “Licensed Producer” “CDSA” “ACMPR” Peace Naturals was incorporated under the CBCA Cronos Australia PTY Ltd. (“ Cronos Australia Corporations Act 2001 (Australia) Indigenous Roots Inc. and Cronos Indigenous Holdings Inc. were incorporated under the CBCA Cronos Global Holdings Inc. (“ Cronos Global CBCA |
Basis of presentation
Basis of presentation | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Basis of presentation | 2. Basis of presentation (a) Basis of consolidation These consolidated financial statements include the accounts of Cronos Group Inc., Hortican Inc., Original BC Ltd., Peace Naturals Project Inc., Indigenous Roots Inc., Cronos Indigenous Holdings Inc., and Cronos Global Holdings Inc. All intercompany transactions, balances, revenues and expenses have been eliminated on consolidation. The Company applies the acquisition method to account for business combinations. Acquisition related costs are expensed as incurred. (b) Going concern These consolidated financial statements have been prepared with the assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business rather than through a process of forced liquidation. During the year ended December 31, 2017, the Company had negative cash flows from operations of $5,548 and was dependent on the Company’s ability to obtain additional financing. These circumstances may cast significant doubt on the Company’s ability to continue as a going concern and ultimately on the appropriateness of the use of the accounting principles applicable to a going concern. In assessing whether the going concern assumption was appropriate, management took into account all relevant information available, which was at least, but not limited to, the twelve month period subsequent to December 31, 2017. The Company is currently implementing various strategies, including the following: • On February 27, 2018, Cronos became listed on the NASDAQ under the trading symbol “CRON”, providing access to a major U.S. exchange to raise financing in support of the Company’s growth and operations; • In 2018, the Company announced strategic joint ventures in Canada and Australia, with MedMen Enterprises USA, LLC and NewSouthern Capital Pty Ltd., respectively, which are expected to enable the Company to expand its capacity and establish a low-cost, • In 2018, the Company has raised an additional $146,000 in gross proceeds through two common share offerings; and • The Company has available, $33,696 of additional liquidity available under its construction loan, which includes $5,000 contingent upon an appraisal of OGBC. The Company believes that based on its previous success in raising capital, and the availability under its construction loan, any shortfall in its cash flows is expected to be mitigated by the Company’s ability to access other sources of liquidity. (c) Statement of compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ( “IFRS” “IASB” These consolidated financial statements were approved by the Board of Directors on April 27, 2018. (d) Basis of measurement Apart from certain assets and liabilities measured at fair value as required under certain IFRSs, the consolidated financial statements have been presented and prepared on the basis of historical cost. (e) Functional and presentation currency These consolidated financial statements are presented in Canadian dollars, which is the functional currency of the Company and all of its subsidiaries. (f) Estimates and critical judgments by management The preparation of these consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates are reviewed periodically and adjustments are made as appropriate in the year they become known. Items for which actual results may differ materially from these estimates are described in the following section. (i) Warrants and options Warrants and options are initially recognized at fair value, based on the application of the Black-Scholes option pricing model. This pricing model requires management to make various assumptions and estimates which are susceptible to uncertainty, including the volatility of the share price, expected dividend yield, expected term of the warrant or option and expected risk-free interest rate. (ii) Useful lives and impairment of long-lived assets Long-lived assets are defined as property, plant and equipment and intangible assets. Depreciation is dependent upon estimates of useful lives and impairment is dependent upon estimates of recoverable amounts. These are determined through the exercise of judgment, and are dependent upon estimates that take into account factors such as economic and market conditions, frequency of use, anticipated changes in laws, and technological improvements. (iii) Impairment of cash-generating units and goodwill The impairment test for cash generating units (“ CGU (iv) Fair value of privately held financial assets available-for-sale The Company’s management considers specific information about the investee companies, trends in general market conditions, and the share performance of similar publicly traded companies when valuing the Company’s privately held investments. Management considers the following factors to indicate a change in the fair value, or impairment of, a privately held investment, and may adjust the value if: a. there has been significant subsequent equity financing provided by outside investors at a value which differs from the current recorded value of the investee company, in which case the fair value of the investment is adjusted to equal the value at which that financing took place; b. there have been significant corporate, political, legal, or operating events affecting the investee company such that management believes they will materially impact the investee company’s prospects and therefore its fair value. In these circumstances, the adjustment to fair value of the investment will be based on management’s judgment; c. the investee company is placed into receivership or bankruptcy; d. based on financial information received from the investee company, it is evident that the investee company is unlikely to be able to continue as a going concern; e. receipt or denial by the investee company of medical marijuana licenses from Health Canada, which allow the investee company to initiate or continue operations; and f. management changes by the investee company that the Company’s management believes will have an impact on the investee company’s ability to achieve its objectives and build value for shareholders. (v) Income taxes Income taxes and tax exposures recognized in the consolidated financial statements reflect management’s best estimate of the outcome based on facts known at the reporting date. When the Company anticipates a future income tax payment based on its estimates, it recognizes a liability. The difference between the expected amount and the final tax outcome has an impact on current and deferred taxes when the Company becomes aware of this difference. In addition, when the Company incurs losses for income tax purposes, it assesses the probability of taxable income being available in the future based on its budgeted forecasts. These forecasts are adjusted to take into account certain non-taxable income and expenses and specific rules on the use of unused credits and tax losses. When the forecasts indicate that sufficient future taxable income will be available to deduct the temporary differences, a deferred tax asset is recognized for all deductible temporary differences. (vii) Biological assets and inventory Biological assets, consisting of cannabis plants, are measured at fair value less costs to sell. At the point of harvest, the biological assets are transferred to inventory at fair value less costs to sell. As a result, critical estimates related to the valuation of biological assets are also applicable to inventory. Determining the fair value less costs to sell requires the Company to make assumptions about the expected future yield from the cannabis plants, the value associated with each stage of the plants’ growth cycle, estimated selling price, costs to convert harvested cannabis into finished goods, and costs to sell. The Company’s estimates are, by their nature, subject to change. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Significant accounting policies | 3. Significant accounting policies The principal accounting policies applied to the preparation of these consolidated financial statements are set out below: (a) Revenue recognition Revenue is recognized at the fair value of consideration received or receivable. Revenue from the sale of finished goods is recognized when the Company has transferred the significant risks and rewards of ownership to the buyer and collection is reasonably assured. The significant risks and rewards of ownership are considered to be transferred upon delivery. (b) Equity accounted investments Significant influence is the power to participate in the financial and operating policy decisions of the investee without control or joint control over those decisions. Significant influence is presumed if the Company holds between 20% and 50% of the voting rights, unless evidence exists to the contrary. The Company has assessed that it has significant influence over its investment in Whistler Medical Marijuana Company. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Investees in which the Company has joint control and rights to the net assets thereof, are defined as joint ventures. The Company’s interests in Cronos Australia and Indigenous Roots LP are classified as joint ventures. Investees in which the Company has significant influence or joint control are accounted for using the equity method. The Company’s interest in an investee is initially recorded at cost and is subsequently adjusted for the Company’s share of changes in net assets of the investee, less any impairment in the value of individual investments, less any dividends paid. Where the Company transacts with an investee, unrealized profits and losses are eliminated to the extent of the Company’s interest in that investee. (c) Biological assets The Company measures biological assets, consisting of cannabis plants, at fair value less costs to sell. Agricultural produce, consisting of medical cannabis, is measured at fair value less costs to sell at the point of harvest, which becomes the basis for the cost of finished goods inventory after harvest. Gains and losses arising from changes in fair values less cost to sell during the period are included in the net income of the related year. (d) Inventory Inventories of harvested finished goods, work-in-process, work-in-process (e) Intangible assets Intangible assets, which have indefinite useful lives, are recorded at cost less impairment losses, if any. Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Intangible assets with indefinite useful lives are not amortized, but are systematically tested for impairment annually in the fourth quarter or earlier if there is an indication of impairment. (f) Property, plant and equipment Property, plant, and equipment are stated at cost less accumulated depreciation. The assets are depreciated over their estimated useful lives using the following methods and rates: Method Rate Building structures Straight-line 15 to 20 years Furniture and equipment Straight-line 5 years Computer equipment Straight-line 3 years Security equipment Straight-line 5 years Production equipment Straight-line 7 years Road Straight-line 25 years Leasehold improvements Straight-line 5 to 10 years An asset’s residual value, useful life and depreciation method are reviewed at each financial year end and adjusted if appropriate. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate components. Construction in progress is not depreciated until it is completed and available for use. (g) Provisions Provision for risks and expenses are recognized for probable outflows of resources that can be estimated and that result from present obligations resulting from past events. In the case where a potential obligation resulting from past events exists, but where occurrence of the outflow of resources is not probable or the estimate is not reliable, these contingent liabilities are disclosed as commitments and litigation. Provisions, if any, are measured based on management’s best estimates of outcomes on the basis of facts known at the reporting date. (h) Share capital Share capital is presented at the fair value of the shares issued. Costs related to the issuance of shares are reported in equity, net of tax, as a deduction from the issuance proceeds. (i) Foreign exchange translation The consolidated financial statements of the Company are presented in Canadian dollars, which is the functional currency of the Company and all of its subsidiaries. Transactions in foreign currencies are recorded at the exchange rate prevailing at the date of the transaction. At each reporting date, foreign currency denominated monetary assets and liabilities are translated at year-end (j) Income taxes The Company accounts for its income taxes using the deferred tax assets and liabilities method. Deferred income tax assets and liabilities are determined based on the difference between the carrying amount and the tax basis of the assets and liabilities. Any change in the net amount of deferred income tax assets and liabilities is included in profit or loss or equity. Deferred income tax assets and liabilities are determined based on enacted or substantively enacted tax rates and laws which are expected to apply to taxable profit for the years in which the assets and liabilities will be recovered or settled. Deferred income tax assets are recognized when it is probable they will be realized. Deferred tax assets and liabilities are not discounted. (k) Stock-based payments Where equity instruments are granted to employees, they are recorded at the fair value of the equity instrument granted at the grant date. The grant date fair value is recognized in net income over the vesting period. Where equity instruments are granted to non-employees, they are recorded at the fair value of the goods or services received in the statement of operations. When the value of goods or services received in exchange for the stock-based payment cannot be reliably estimated, the fair value is measured by use of a valuation model. The cost recognized for all equity-settled stock-based payments are reflected in share-based reserve, until the instruments are exercised. Upon exercise, shares are issued from treasury and the amount previously reflected in share-based (l) Earnings per share The Company presents basic and diluted earnings per share data for its common shares. Basic earnings per share is calculated by dividing the profit or loss attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined by adjusting the profit or loss attributable to common shareholders and the weighted average number of common shares outstanding, for the effects of all potentially dilutive common shares, which comprise warrants and stock options. (m) Financial instruments The Company aggregates its financial instruments into classes based on their nature and characteristics. Management determines the classification when the instruments are initially recognized. All financial assets except those classified as fair value through profit or loss are reviewed at each reporting date to determine whether there is any indication of impairment. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. The Company’s accounting policy for each class of financial instruments is as follows: (i) Fair value through profit or loss Financial instruments classified as fair value through profit or loss are reported at fair value at each reporting date, and any change in fair value is recognized in net income in the period during which the change occurs. In these consolidated financial statements, cash and the investment in warrants of AbCann Global Corp. have been classified as fair value through profit or loss. (ii) Available-for-sale Financial instruments classified as available-for-sale available-for-sale write-down (iii) Loans and receivables and other financial liabilities Financial instruments classified as loans and receivables and other financial liabilities are carried at amortized cost using the effective interest method. Transaction costs are included in the amount initially recognized. In these consolidated financial statements, accounts receivable, loans receivable, and other receivables have been classified as loans and receivables. Accounts payable and other liabilities, purchase price liability, mortgage payable, and construction loan payable have been classified as other financial liabilities. |
Adoption of new accounting pron
Adoption of new accounting pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Adoption of new accounting pronouncements | 4. Adoption of new accounting pronouncements (a) AMENDMENTS TO IAS 7 STATEMENT OF CASH FLOWS International Accounting Standard ( “IAS” (b) IAS 12 INCOME TAXES IAS 12 amendments include: (a) unrealized losses on debt instruments measured at fair value and measured at cost for tax purposes give rise to a deductible temporary difference regardless of whether the debt instrument’s holder expects to recover the carrying amount of the debt instrument by sale or by use; (b) the carrying amount of an asset does not limit the estimation of probable future taxable profits; (c) estimates for future taxable profits exclude tax deductions resulting from the reversal of deductible temporary differences; and (d) an entity assesses a deferred tax asset for recoverability in combination with other deferred tax assets. Where tax law restricts the utilization of tax losses, an entity would assess a deferred tax asset for recoverability in combination with other deferred tax assets of the same type. These amendments became effective for annual periods beginning on or after January 1, 2017. The Company has adopted these amendments as of the effective date and has assessed no significant changes as a result of the adoption of these amendments on the current or prior periods. |
New and revised standards and i
New and revised standards and interpretations issued but not yet effective | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
New and revised standards and interpretations issued but not yet effective | 5. New and revised standards and interpretations issued but not yet effective (a) AMENDMENTS TO IFRS 2 SHARE-BASED PAYMENTS IFRS 2 clarifies how to account for certain types of share-based payment transactions. The amendments provide requirements on the accounting for the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments, share-based payment transactions with a net settlement feature for withholding tax obligations, and a modification to the terms and conditions of a share-based payment that changes the classification of the transaction from cash-settled to equity-settled. The effective date of these amendments is January 1, 2018. The Company will adopt the amendments as of its effective date. The Company has performed a preliminary assessment and does not expect there to be significant impact on the consolidated financial statements as a result of these amendments. (b) IFRS 9 FINANCIAL INSTRUMENTS IFRS 9 addresses classification and measurement of financial assets and replaces the multiple category and measurement models in IAS 39 for debt instruments with a new mixed measurement model having only two categories: amortized cost and fair value through profit or loss. IFRS 9 also replaces the models for measuring equity instruments and such instruments are either recognized at fair value through profit or loss or at fair value through other comprehensive income. The effective date of this standard is January 1, 2018. The Company will adopt this new standard as of its effective date. As a result of the new classification model and measurement requirements under IFRS 9, the Company will elect to classify the available-for-sale (c) IFRS 15 REVENUE FROM CONTRACTS WITH CUSTOMERS IFRS 15 was issued by the IASB in May 2014 and specifies how and when revenue should be recognized based on a five- During the year, the Company had undertaken an accounting impact analysis based on a review of the contractual terms of its principal revenue stream. Under IFRS 15, the revenue recognition model will change from one based on the transfer of risks and rewards of ownership to the transfer of control. The Company’s revenue is predominantly derived from sales of dried cannabis and cannabis oil. As the transfer of risks and rewards generally coincides with the transfer of control at a point in time, the timing and amount of revenue considering discounts, rebates, and variable considerations, recognized from this principal revenue stream is unlikely to be materially affected. (d) IFRS 16 LEASES IFRS 16 was issued in January 2016 and replaces the previous guidance on leases. This standard provides a single recognition and measurement model to be applied by lessees to leases, with required recognition of assets and liabilities for most leases. This standard is effective for annual periods beginning on or after January 1, 2019, with early adoption permitted if the Company is also applying IFRS 15, Revenue from Contracts with Customers. The Company will adopt this new standard as of its effective date. The Company is currently evaluating the impact of the adoption of this new standard on its consolidated financial statements. |
Acquisition of Peace Naturals
Acquisition of Peace Naturals | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Acquisition of Peace Naturals | 6. Acquisition of Peace Naturals On September 6, 2016, the Company acquired all of the remaining issued and outstanding shares of Peace Naturals, a Licensed Producer, headquartered in Stayner, Ontario. Consideration for the acquisition included $6,248 in cash and $2,590 (approximately 30%) to be paid once all conditions of the agreement were settled. The conditions were based on the passage of time to ensure there were no additional liabilities identified. As the Company previously held shares of Peace Naturals, the acquisition is considered a step acquisition and resulted in a loss due to fair value remeasurement. The purchase price allocation for this acquisition is shown below: Fair value of consideration transferred: Cash $ 6,248 Liability (i) 2,590 8,838 Fair value of previously held interest: Fair value of previously held interest immediately before acquisition 3,315 Loss due to fair value remeasurement at acquisition date (347 ) 2,968 $ 11,806 Fair value of net assets acquired: Cash $ 109 Accounts receivable 51 Prepaid and deposits 29 Inventory 1,194 Biological assets 866 Property and equipment 10,282 Goodwill 1,400 Health Canada license 9,596 Accounts payable and accrued liabilities (2,860 ) Loans payable (7,461 ) Deferred tax liability (1,400 ) $ 11,806 The Company finalized its assessment of the purchase price allocation during the year ended December 31, 2017. The allocation of the consideration paid remains consistent with the initial valuation. (i) During the year ended December 31, 2017, the full balance of the purchase price liability was repaid by the Company. |
Biological assets and inventory
Biological assets and inventory | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Biological assets and inventory | 7. Biological assets and inventory The Company’s biological assets consist of cannabis plants. The changes in the carrying amount of the biological assets are as follows: 2017 2016 Biological assets - beginning of year $ 1,795 $ — Gain on revaluation of biological assets 11,620 2,179 Increase due to acquisition of Peace Naturals — 866 Transferred to inventory upon harvest (9,693 ) (1,250 ) Biological assets - end of year $ 3,722 $ 1,795 The effect of changes in fair value of biological assets and inventory during the year include: 2017 2016 Unrealized change in fair value of biological assets $ (11,620 ) $ (2,179 ) Realized fair value increments on inventory sold during the year 3,956 266 Net effect of changes in fair value of biological assets and inventory $ (7,664 ) $ (1,913 ) The Company values its biological assets at the end of each reporting period at fair value less costs to sell. This is determined using a valuation model to estimate the expected harvest yield per plant applied to the estimated price per gram less processing and selling costs. This model also considers the progress in the plant life cycle. Management has made the following estimates in this valuation model: • The average number of weeks in the growing cycle is fifteen weeks from propagation to harvest; • The average harvest yield of whole flower is 182 grams per plant; • The average selling price of whole flower is $8.50 per gram; • Processing costs include drying and curing, testing and packaging, post-harvest overhead allocation, and oil extraction costs estimated to be $0.82 per gram; and • Selling costs include shipping, order fulfillment, and labelling, estimated to be $0.97 per gram. The estimates of growing cycle, harvest yield, and costs per gram are based on the Company’s historical results. The estimate of the selling price per gram is based on the Company’s historical sales in addition to the Company’s expected sales price going forward. Management has quantified the sensitivity of the inputs, and determined the following: • Selling price per gram – a decrease in the selling price per gram by 5% would result in the biological asset value decreasing by $227 (2016 - $88) and inventory decreasing by $443 (2016 - $68) • Harvest yield per plant – a decrease in the harvest yield per plant of 5% would result in the biological asset value decreasing by $181 (2016 - $110) These inputs are level 3 on the fair value hierarchy, and are subject to volatility and several uncontrollable factors, which could significantly affect the fair value of biological assets in future periods. As at December 31, 2017, the biological assets were on average, 46% complete (2016 – 50%), and the estimated fair value less costs to sell of dry cannabis was $6.71 per gram. As of December 31, 2017, it is expected that the Company’s biological assets will ultimately yield approximately 1,695 kg of cannabis (2016 - 213 kg). As at December 31, 2017, the Company has 7,353 plants that are biological assets (2016 - 2,558 plants). Inventory as at December 31 consists of the following: 2017 2016 Dry cannabis Finished goods $ 6,145 $ 1,502 Work-in-process 1,630 — 7,775 1,502 Cannabis oils Finished goods 332 — Raw materials 183 194 Supplies and consumables 126 212 $ 8,416 $ 1,908 As at December 31, 2017, the Company held 815 kg of dry cannabis and 137 L of cannabis oil as finished goods (2016 - 236 kg). In addition, the Company held 243 kg of work-in-process (2016 - Nil), which is comprised of harvested cannabis in the processing stage, and 0.288 kg of seeds in raw materials (2016 - 0.298 kg). |
Loans receivable
Loans receivable | 12 Months Ended |
Dec. 31, 2017 | |
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Loans receivable | 8. Loans receivable 2017 2016 Loan receivable from Evergreen Medicinal Supply Inc. (“ Evergreen $ 309 $ 265 Loan receivable from Vert/Green Medical Inc. (“ Vert — 375 309 640 Add: Accrued interest 5 92 314 732 Less: Principal and interest received — (423 ) Loans receivable $ 314 $ 309 (i) The loan is due on demand, bearing interest at 8% per year, calculated and payable annually in arrears. (ii) During the year ended December 31, 2016, the full amount of the loan plus accrued interest was repaid and the previously recorded impairment loss was reversed. The loan was due on demand, and bore interest at 8% per year, calculated and payable semi-annually in arrears. |
Investment in Whistler
Investment in Whistler | 12 Months Ended |
Dec. 31, 2017 | |
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Investment in Whistler | 9. Investment in Whistler As at December 31, 2017, the investment represents an approximate 20.3% (2016 - 21.5%) ownership in Whistler Medical Marijuana Company ( “Whistler” Summarized financial information of Whistler is as follows: 2017 2016 Current assets $ 4,163 $ 2,233 Non-current 13,645 3,855 Current liabilities 3,676 1,649 Non-current — 865 Revenue $ 3,813 $ 2,817 Income from continuing operations 814 757 Reconciliation of the carrying amount of the investment is as follows: 2017 2016 Balance - beginning of the year $ 2,566 $ 2,405 Purchase of additional shares 1,076 — Company’s share of dividends paid — (2 ) Company’s share of income 165 163 Balance - end of the year $ 3,807 $ 2,566 |
Other investments
Other investments | 12 Months Ended |
Dec. 31, 2017 | |
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Other investments | 10. Other investments Other investments consist of investments in common shares and warrants of several companies in the medical cannabis industry. These investments, with the exception of shares of Evergreen Medicinal Supply Inc. and warrants of AbCann Global Corp., are traded in an active market, and as a result have a reliably measurable fair value. Available-for-sale 2017 2016 The Hydropothecary Corporation ( “Hydropothecary” $ — $ 412 Canopy Growth Corporation ( “Canopy” 877 337 AbCann Global Corp. ( “AbCann” — 3,073 Evergreen Medicinal Supply Inc. ( “Evergreen” 300 300 $ 1,177 $ 4,122 Fair value through profit or loss investment AbCann Global Corp. - share warrants (v) $ 170 $ 1,005 $ 1,347 $ 5,127 (i) During the year ended December 31, 2016, the Company received bonus shares pursuant to the original agreement, for $Nil consideration. The transaction price was less than the fair value at the date of receipt, and the gain of $25 on initial recognition was deferred as the fair value was based on other than level 1 inputs. The deferred gain was taken into income as factors that market participants would consider when valuing the shares had changed. The fair value of the shares was based on the share price of the financing that took place in December 2016. During the year ended December 31, 2017, BFK Capital Corp. acquired all of the outstanding shares of Hydropothecary, and began trading as Hydropothecary Corporation, (TSX-V:THCX). (ii) During the year ended December 31, 2016, Canopy acquired all of the outstanding shares of Vert. In exchange for shares in Vert, Canopy issued the former Vert shareholders, shares of Canopy. The fair value of the Canopy shares at the date of the transaction of $258 determined the proceeds on derecognition of the Vert shares. Since the gain was realized, it was recorded as income. The fair value of the Canopy shares at the date of the transaction was also the deemed cost of the Canopy shares. (iii) During the year ended December 31, 2017, the Company sold some of its shares of Canopy for proceeds of $88. During the year ended December 31, 2016, the Company received bonus shares pursuant to the original agreement, for $Nil consideration. The transaction price was less than the fair value at the date of receipt, and the gain of $75 on initial recognition was initially deferred as the fair value was based on other than level 1 inputs. During the year, the deferred gain was taken into income as factors that market participants would consider when valuing the shares had changed. The fair value of all of the shares was estimated based on a valuation of the investee’s peer group. During the year ended December 31, 2017, AbCann Medicinals Inc. performed a reverse takeover with Panda Capital Inc. As a result of this transaction, AbCann began trading as AbCann Global Corp. (TSX-V:ABCN). (iv) During the year ended December 31, 2016, management revised their estimate of the fair value of the investment back to its original value, based on management’s assessment of the likelihood Evergreen would receive a license to produce and sell medical marijuana. The gain on the revaluation of the investment has been recognized as other comprehensive income. (iv) During the year ended December 31, 2017, Evergreen received a cultivation license under the ACMPR. As a result, the Company completed its subscription for a second tranche of shares of Evergreen for $100 and exercised its option to acquire an additional 5% of the equity of Evergreen for $500, for a total additional investment of $600. However, Evergreen, through its counsel, has indicated that the Company is not entitled to any interest in Evergreen and has rejected the payment. The Company filed a statement of claim in the Supreme Court of British Columbia against Evergreen and its directors, seeking, among other things, declarations that the Company holds equity of Evergreen and that the agreement between the parties in respect of Evergreen’s equity is a valid and binding contract. Evergreen has filed a statement of defence. The Company intends to vigorously pursue the enforcement of its rights to acquire equity in Evergreen. (v) During the year ended December 31, 2016, the Company received bonus warrants pursuant to the original agreement, for $Nil consideration. The transaction price was less than the fair value at the date of receipt, and the gain of $24 on initial recognition was initially deferred as the fair value was based on other than level 1 inputs. During the year, the deferred gain on the bonus warrants and the original warrants was taken into income as factors that market participants would consider when valuing the warrants have changed. As at December 31, 2016, the fair value of the warrants was estimated using the Black-Scholes During the year ended December 31, 2017, the Company exercised 3,658,537 warrants for $2,268, for additional shares of AbCann. As at December 31, 2017, the fair value of the remaining 182,927 warrants was estimated using the Black-Scholes The gains recognized upon the increase in fair value on other investments is as follows: 2017 2016 The Hydropothecary Corporation (i) $ 657 $ 25 Canopy Growth Corporation (ii) 36 258 AbCann Global Corp. - shares (iii) 4,160 75 AbCann Global Corp. - share warrants (v) 5 1,005 Peace Naturals — (1,326 ) Peace Naturals - immediately before acquisition (Note 6) — (347 ) Gain (loss) recognized through profit-and-loss $ 4,858 $ (310 ) 2017 2016 The Hydropothecary Corporation (i) $ — $ 137 Canopy Growth Corporation (ii) 608 79 AbCann Global Corp. - shares (iii) — 1,498 Vert/Green Medical Inc. - shares — 300 Gain recognized through other comprehensive income $ 608 $ 2,014 |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2017 | |
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Property, plant and equipment | 11. Property, plant and equipment Cost Balance at Additions As at December 31, Land $ 1,558 $ — $ 1,558 Building structures 2,761 8,757 11,518 Furniture and equipment 63 71 134 Computer equipment 88 60 148 Security equipment 474 412 886 Production equipment 2,106 375 2,481 Road 137 — 137 Leasehold improvements 1,429 68 1,497 Construction in progress 6,034 33,303 39,337 $ 14,650 $ 43,046 $ 57,696 In 2017, there were non-cash additions from the capitalization of financing costs on construction in progress amounting to $345 (2016 - $Nil). Refer to Note 14. In addition, during 2017, $6,034 (2016 - $Nil) was transferred out of construction in progress to building structures. Accumulated depreciation Balance at Additions As at December 31, Building structures $ 120 $ 313 $ 433 Furniture and equipment 18 25 43 Computer equipment 36 39 75 Security equipment 60 136 196 Production equipment 103 328 431 Road 5 5 10 Leasehold improvements 186 150 336 $ 528 $ 996 $ 1,524 Net book value $ 14,122 $ 56,172 In 2017, $455 (2016 - $Nil) of depreciation expense is recorded as part of inventory expensed to cost of sales, production costs, and general and administration. Cost Balance at Additions Acquisitions As at Land $ 210 $ 623 $ 725 $ 1,558 Building structures 824 62 1,875 2,761 Furniture and equipment 27 — 36 63 Computer equipment 29 38 21 88 Security equipment 183 291 — 474 Production equipment 72 409 1,625 2,106 Road 137 — — 137 Leasehold improvements 1,363 66 — 1,429 Construction in progress — 34 6,000 6,034 $ 2,845 $ 1,523 $ 10,282 $ 14,650 Accumulated depreciation Balance at Additions As at Building structures $ 63 $ 57 $ 120 Furniture and equipment 8 10 18 Computer equipment 12 24 36 Security equipment 9 51 60 Production equipment 14 89 103 Road — 5 5 Leasehold improvements 40 146 186 $ 146 $ 382 $ 528 Net book value $ 2,699 $ 14,122 |
Intangible assets and goodwill
Intangible assets and goodwill | 12 Months Ended |
Dec. 31, 2017 | |
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Intangible assets and goodwill | 12. Intangible assets and goodwill Intangible assets Balance at Additions Balance at Additions Balance at Health Canada Licenses: OGBC $ 1,611 $ — $ 1,611 $ — $ 1,611 Peace Naturals (Note 6) — 9,596 9,596 — 9,596 $ 1,611 $ 9,596 $ 11,207 $ — $ 11,207 Goodwill Balance at Additions Balance at Additions Balance at OGBC $ 392 $ — $ 392 $ — $ 392 Peace Naturals (Note 6) — 1,400 1,400 — 1,400 $ 392 $ 1,400 $ 1,792 $ — $ 1,792 For purposes of impairment testing, intangible assets with an indefinite life and goodwill were allocated to the smallest identifiable group of assets that generate cash flows independently (a cash-generating unit or “CGU” The recoverable amounts of the CGUs were determined based on a value-in-use OGBC Peace Naturals Weighted average cost of capital (after-tax) 37.0 % 36.0 % Average growth rate* 490.0 % 140.0 % * The average growth rate is determined by summing the expected year-over-year These assumptions are based on the Company’s historical results, the preliminary results of the first quarter of the following fiscal year, and management’s expectations of the cash flows based on budgeted results, taking into account estimated sales volume and price changes. The impairment test performed resulted in no impairment of licenses or goodwill at December 31, 2017 and 2016. Management has not identified a reasonably possible change in these key assumptions that could cause the carrying amount of either CGU to exceed its recoverable amount. |
Mortgage payable
Mortgage payable | 12 Months Ended |
Dec. 31, 2017 | |
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Mortgage payable | 13. Mortgage payable On September 6, 2016, the Company obtained a mortgage in connection with the acquisition of Peace Naturals (Note 6) with a principal balance of $4,000. The mortgage was interest-bearing at 12% per annum compounded and payable monthly. The mortgage was secured by a first charge on Peace Natural’s property as well as a first ranking security interest charging all the personal property of Peace Naturals and each covenantor in the amount of the loan. The mortgage matured on June 1, 2017 and was fully repaid. |
Construction loan payable
Construction loan payable | 12 Months Ended |
Dec. 31, 2017 | |
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Construction loan payable | 14. Construction loan payable 2017 2016 First advance $ 6,304 $ — Less: transaction costs (net of amortization) (1,122 ) — Add: accrued interest 185 — $ 5,367 $ — On August 23, 2017, Peace Naturals, as borrower, entered into a construction loan agreement with Romspen Investment Corporation as lender, to borrow $40,000, to be funded by way of multiple advances. The aggregate advances are limited to $35,000 until the lender receives an appraisal valuing the property in British Columbia at an amount of not less than $8,000. The loan bears interest at a rate of 12% per annum, calculated and compounded monthly, in arrears, on the amounts advanced from the date of each advance. The term of the loan is two years, with the borrower’s option to extend for another twelve months. The loan is guaranteed by Cronos Group, Hortican, OGBC, the responsible-person-in-charge senior- (a) first-ranking “Property” (b) first-ranking (c) general security agreements creating first-ranking security interests charging all the personal property of Peace Naturals and the corporate guarantors including without limitation, goods, chattels, paper, documents, accounts, intangible assets, securities, monies, books and records; (d) specific assignment of each Property’s right, title, and interest in the construction project for which the loan is being used to fund, including licenses, permits, plans and specifications, development approvals and agreements; (e) acknowledgement of the status and terms of any contracts affecting or with respect to each Property including without limitation, any pertaining to ownership, insurance, shared facilities, passageway agreements, or similar matters, confirming the good status of such contracts, and the rights of the lender under such contracts; (f) the subordination of all other indebtedness of Peace Naturals; (g) an unconditional, joint and several covenant by the guarantors as principal debtor for the performance of obligations by Peace Naturals, it being understood that the lender is not obliged to proceed against Peace Naturals or exhaust any security before proceeding against the guarantors; (h) assignment, postponement, and subordination by the corporate guarantors in favour of the lender; (i) assignment of all insurance policies with respect to each Property and the construction project; (j) pledge of the shares of Peace Naturals, OGBC, and Hortican; (k) an environmental indemnity from Peace Naturals and the corporate guarantors; and (l) deficiency and completion guarantee from Peace Naturals and the corporate guarantors. |
Share capital and reserves
Share capital and reserves | 12 Months Ended |
Dec. 31, 2017 | |
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Share capital and reserves | 15. Share capital and reserves (a) Share capital (i) Common Shares The Company is authorized to issue an unlimited number of no par value common shares. The holders of the common shares are entitled to receive dividends which may be declared from time to time, and are entitled to one vote per share at meetings of the Company. All shares are ranked equally with regards to the Company’s residual assets. During the year ended December 31, 2016, 75,289,565 common shares were issued in private placements, 32,432,425 of which were issued as units, where the holder received one common share and one common share purchase warrant. Total consideration raised through private placements in 2016 was $20,928, of which $129 was recognized as share-based payment expense in lieu of compensation (Note 18). During the year ended December 31, 2016, convertible loans were converted, resulting in the issuance of 1,150,000 common shares at a value of $115. During the year ended December 31, 2017, the Company issued 7,705,000 common shares for aggregate gross proceeds of $17,336, and 5,476,190 common shares for aggregate gross proceeds of $17,248, through bought deals. In addition, 6,671,112 common shares were issued in private placements, for aggregate gross proceeds of $15,010. As at December 31, 2017, none of the Company’s shares were held in escrow (2016 - 3,233,992). The release of the shares held in escrow at December 31, 2016 was subject to regulatory approval. (ii) Special Shares The Company is authorized to issue an unlimited number of special shares, issuable in series. The special shares may be issued in one or more series and the directors are authorized to fix the number of shares in each series and to determine the designation, right, privileges, restrictions and conditions attached to the shares in each series. No special shares have been issued since the Company’s inception. (b) Warrants The following is a summary of the changes in warrants for the period from January 1, 2016 to December 31, 2017: Number of Grant date Exercise price warrants Amount Balance at January 1, 2016 15,795,422 $ 1,329 Issuance of warrants (i) May May 13 and 27, 2016 $ 0.245 32,432,425 2,832 Exercise of warrants July January 18, 2013 0.08 (55,000 ) — August October 1, 2013 0.24 (100,000 ) (15 ) October October 1, 2013 0.24 (661,505 ) (96 ) November October 25, 2015 0.31 (460,877 ) (31 ) November January 18, 2013 0.08 (422,443 ) (28 ) December December 18, 2013 0.24 (53,347 ) (1 ) December January 18, 2013 0.08 (511,252 ) (7 ) Expiry of warrants (78,251 ) — Balance at December 31, 2016 45,885,172 $ 3,983 Exercise of warrants January January 30, 2014 0.71 (375,565 ) (164 ) January January 18, 2013 0.08 (298,066 ) — March October 8, 2015 0.31 (1,140,351 ) (117 ) April October 28, 2015 0.31 (350,877 ) (66 ) April January 18, 2013 0.08 (744,198 ) — May January 18, 2013 0.08 (165,377 ) — May October 28, 2015 0.31 (192,982 ) (36 ) June January 18, 2013 0.08 (50,000 ) — July January 18, 2013 0.08 (248,066 ) — July October 28, 2015 0.31 (157,894 ) (30 ) August May 13, 2016 0.245 (2,300,000 ) (202 ) September May 27, 2016 0.245 (48,720 ) (4 ) September January 18, 2013 0.08 (951,064 ) — November January 18, 2013 0.08 (133,022 ) — December January 18, 2013 0.08 (55,126 ) — Expiry of warrants (19,210 ) — Balance at December 31, 2017 38,654,654 $ 3,364 (i) 32,432,425 units were issued in two private placements. Each unit consisted of one common share and one common share purchase warrant, for total consideration of $5,978. As at December 31, 2017, the Company has outstanding warrants as follows: Grant date Number of Exercise price Expiry January 18, 2013 2,981,476 $ 0.08 January 18, 2018 October 8, 2015 4,101,680 0.31 October 8, 2020 October 23, 2015 1,478,245 0.31 October 23, 2020 October 28, 2015 9,548 0.31 October 28, 2020 May 13, 2016 8,510,812 0.245 May 13, 2021 May 27, 2016 21,572,893 0.245 May 27, 2021 38,654,654 $ 0.242 |
Stock-based payments
Stock-based payments | 12 Months Ended |
Dec. 31, 2017 | |
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Stock-based payments | 16. Stock-based payments (a) Option plan details The Company has an incentive stock option plan, under which non-transferrable (b) Summary of changes The following is a summary of the changes in options for the period from January 1, 2016 to December 31, 2016: Grant date Exercise price Number of Amount Balance at January 1, 2016 1,610,003 $ 599 Issuance of options May May 17 and 27, 2016 $ 0.285 157,850 6 August August 5, 2016 0.50 1,225,000 30 October October 6, 2016 1.23 3,618,500 114 November Multiple Multiple 482,000 28 Exercise of options — August October 1, 2013 0.24 (213,390 ) (31 ) August May 17 and 27, 2016 0.285 (157,390 ) (6 ) October October 1, 2013 0.24 (32,008 ) (5 ) Expiry of options 0.96 (512,971 ) — Balance at December 31, 2016 6,177,594 $ 735 The following is a summary of the changes in options for the period from January 1, 2017 to December 31, 2017: Grant date Exercise price Number of Amount Balance at January 1, 2017 6,177,594 $ 735 Issuance of options April April 12, 2017 3.14 3,299,000 — August August 23, 2017 2.42 2,903,000 — November November 9, 2017 3.32 200,000 — Exercise of options January January 30, 2014 0.71 (32,009 ) (14 ) February August 5, 2014 1.15 (32,000 ) (23 ) March September 19, December 17, 2014 1.15 (171,695 ) (104 ) April August 5, 2014 1.15 (93,000 ) (66 ) April October 6, 2016 1.23 (30,416 ) (15 ) May August 5, 2014 1.15 (35,043 ) (25 ) July August 5, 2016 0.50 (83,333 ) (19 ) September October 6, 2016 1.23 (1,250 ) (1 ) December December 17, 2014 1.15 (92,500 ) (41 ) Expiry of options (404,598 ) — Vesting of issued options 1.15 — 1,862 Balance at December 31, 2017 11,603,750 $ 2,289 The weighted average share price at the dates of exercise of options during the year ended December 31, 2017 was $3.66 (2016 - $0.52). As at December 31, 2017, the Company had outstanding and exercisable options as follows: Weighted average Grant date Vesting terms Number of Exercise price Remaining August 5, 2016 Evenly over 48 months 1,141,666 $ 0.50 3.60 October 6, 2016 Evenly over 48 months 3,578,084 1.23 3.77 November 16, 2016 On May 15, 2017 300,000 1.50 0.37 November 21, 2016 Evenly over 48 months 182,000 1.84 3.88 April 12, 2017 Evenly over 48 months 3,299,000 3.14 4.28 August 23, 2017 Evenly over 48 months 2,903,000 2.42 4.65 November 9, 2017 Evenly over 48 months 200,000 3.32 4.86 Outstanding at December 31, 2017 11,603,750 $ 2.05 4.05 Exercisable at December 31, 2017 2,744,387 $ 1.71 3.57 These options shall expire at the earlier of 180 days of the death, disability or incapacity of the holder or five years after the date of issue, and can only be settled in equity. As at December 31, 2017, the weighted average exercise price of options outstanding is $2.05 (2016 - $1.10). The weighted average exercise price of options exercisable is $1.71 (2016 - $1.09). (c) Fair Value of Options Issued During the Year The fair value of the options was determined using the Black-Scholes 2017 2016 Share price at grant date $2.42 - $3.27 $0.19 - $1.77 Exercise price $2.42 - $3.32 $0.285 - $1.84 Risk free interest rate 0.96% - 1.59% 0.54% - 0.67% Expected life of options (years) 5 0.25 - 5 Expected annualized volatility 55% 55% - 150% Expected dividend yield 0% 0% Weighted average Black Scholes value at grant date $1.39 $0.43 Volatility was estimated using the historical volatility of the Company and other companies that the Company considers comparable that have trading and volatility history prior to the Company becoming public. (d) Expenses Arising from Stock-based Payments Total expenses arising from stock-based payments recognized during the year ended December 31, 2017 were $1,862 (2016 $307). |
Earnings (loss) per share
Earnings (loss) per share | 12 Months Ended |
Dec. 31, 2017 | |
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Earnings (loss) per share | 17. Earnings (loss) per share Basic and diluted earnings (loss) per share are calculated using the following numerators and denominators: Numerator 2017 2016 Net Income (loss) attributable to common shareholders $ 2,491 $ (1,190 ) Net Income (loss) used in computation of basic and diluted earnings (loss) per share $ 2,491 $ (1,190 ) Denominator 2017 2016 Weighted average number of common shares for computation of basic earnings (loss) per share 134,803,542 78,248,192 Dilutive effect of warrants 38,378,288 — Dilutive effect of options 3,607,331 — Weighted average number of common shares for computation of diluted earnings (loss) per share 176,789,161 78,248,192 As at December 31, 2017, all instruments were dilutive (2016 - all anti-dilutive). |
Related party transactions and
Related party transactions and balances | 12 Months Ended |
Dec. 31, 2017 | |
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Related party transactions and balances | 18. Related party transactions and balances The following is a summary of the Company’s related party transactions during the year: (a) Key management compensation Key management personnel are persons responsible for planning, directing and controlling activities of an entity, and include management executives of the Company. Compensation provided to key management is as follows: 2017 2016 Short-term employee benefits, including salaries and fees $ 417 $ 264 Professional fees 234 171 Stock-based payments (i) 899 208 $ 1,550 $ 643 (i) Stock-based payments are comprised of $Nil (2016 - $129) of shares issued in lieu of compensation, and $899 (2016 - $79) in stock options provided to key management of the Company. Refer to Note 16. As at December 31, 2017, there was a balance payable of $Nil to members of key management (2016 - $86). (b) Purchase of shares and warrants (i) On May 27, 2016, a board member purchased 810,810 units of the Company’s private placement. Refer to Note 15 (a). The board member paid approximately $150 for these units, which represents the fair value. (ii) On May 27, 2016, a shareholder with ownership interest exceeding 10%, purchased 4,665,187 units of the Company’s private placement. Refer to Note 15(a). The shareholder paid approximately $863 for these units, which represents the fair value. (c) Issuance of options to directors (i) During the year ended December 31, 2017, a total of 1,800,000 (2016 - 1,616,000) options were issued to directors of the Company. Stock-based payments of $601 (2016 - $49) were recognized for these options. Refer to Note 16. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2017 | |
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Commitments and contingencies | 19. Commitments and contingencies (a) The following is a summary of the Company’s minimum operating lease obligations for its premises due in future fiscal years: 2018 $ 81 2019 88 2020 92 2021 92 2022 95 Thereafter 8 $ 456 In addition to the minimum lease payments, the Company is required to pay realty taxes and other occupancy costs. (b) The following contingencies are related to Peace Naturals: (i) Plants Claim. Plants Claim (ii) MedCann Access Acquisition Claim. Plaintiffs (iii) Warrants Claim. (iv) Former Employees’ Unlawful Termination Claims. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2017 | |
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Income taxes | 20. Income taxes The components of the income tax provision (recovery) include: 2017 2016 Current $ — $ — Deferred 298 (568 ) $ 298 $ (568 ) The reconciliation of the combined Canadian federal and provincial statutory income tax rate of 26.5% (2016 - 26.5%) to the effective tax rate is as follows: 2017 2016 Income before income taxes $ 2,789 $ (1,758 ) Combined statutory tax rate 26.5 % 26.5 % Theoretical tax expense (recovery) $ 739 $ (466 ) Non-deductible Stock-based payments 494 81 Non-taxable Non-taxable (762 ) — Effect of provincial tax rate difference 5 4 Changes in unrecognized deferred tax assets (178 ) (187 ) Income tax expense (recovery) $ 298 $ (568 ) The components of deferred tax are summarized below. Deferred tax assets and liabilities have been offset where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset. 2017 2016 Deferred tax assets Non-capital $ 5,690 $ 2,400 Scientific research and experimental development 28 28 Financing fees 31 — Deferred tax liabilities Biological assets (986 ) (18 ) Inventory (1,989 ) (51 ) Equity accounted investments (153 ) — Investments (91 ) (696 ) Property, plant and equipment (968 ) (158 ) Health Canada licenses (2,978 ) (2,962 ) Net deferred tax liability $ (1,416 ) $ (1,457 ) The movement in the net deferred tax liability is provided below: 2017 2016 Balance - beginning of year $ 1,457 $ 195 Recognized in income 298 (568 ) Recognized in other comprehensive income (339 ) 430 Recognized in goodwill — 1,400 Balance - end of year $ 1,416 $ 1,457 Deferred taxes are provided as a result of temporary differences that arise due to the differences between the income tax values and the carrying amount of assets and liabilities. Deferred tax assets have not been recognized in respect of the following deductible temporary differences because it is not probable that future taxable profit will be available against which the Company can utilize the benefits therefrom. The following are temporary differences that gave rise to deferred tax assets, which have not been recognized in these consolidated financial statements. 2017 2016 Property, plant and equipment $ 684 $ — Equity accounted investments — 89 Share and debt issuance costs (i) 2,834 1,085 Losses carried forward (ii) 7,814 3,833 Other investments — 6 (i) Share and debt issuance costs will be fully amortized in 2022. The remaining deductible temporary differences may be carried forward indefinitely. (ii) For income tax purposes, the Company has losses carried forward from prior years which can be used to reduce future years’ taxable income. These losses expire as follows: Non-capital 2030 $ 32 2031 22 2032 877 2033 3,177 2034 1,782 2035 5,452 2036 6,558 2037 11,383 $ 29,283 |
Operating segment information
Operating segment information | 12 Months Ended |
Dec. 31, 2017 | |
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Operating segment information | 21. Operating segment information For the years ended December 31, 2017 and 2016, The Company was divided into two operating segments corresponding to its two primary business models. The first segment related to pursuing equity investments into Licensed Producers in Canada, ( “Investing Segment” “Operating Segment” The operating segments are presented in accordance with the same criteria used for internal reporting prepared for the chief operating decision-makers responsible for allocating resources and assessing performance. Inter-segment As at December 31, 2017 and 2016, substantially all of the Company’s assets were located in Canada. For the year ended December 31, 2017: Investing Operating Inter-segment 2017 Statement of Operations Product sales $ — $ 4,082 $ — $ 4,082 Share of income from equity investment 165 — — 165 Unrealized gain on revaluation of biological assets — 11,620 — 11,620 Production costs — 3,983 — 3,983 Inventory expensed as cost of sales — 4,489 — 4,489 Gain on disposition and revaluation of other investments 4,858 — — 4,858 Intercompany revenue 624 — (624 ) — Stock-based compensation 1,862 — — 1,862 Interest expense 1 600 (475 ) 126 Depreciation 71 470 — 541 Net income (loss) (368 ) 3,382 (523 ) 2,491 Consolidated Statement of Financial Position Total assets $ 151,998 $ 70,198 $ (121,167 ) $ 101,029 Total liabilities 979 67,957 (54,275 ) 14,661 Shareholders’ equity $ 151,019 $ 2,241 $ (66,892 ) $ 86,368 Other information Property, plant and equipment $ 1,153 $ 53,175 $ 1,844 $ 56,172 Addition of property, plant, and equipment 138 42,908 — 43,046 For the year ended December 31, 2016: Investing Operating Inter-segment segment segment elimination 2016 Consolidated Statement of Operations Product sales $ — $ 554 $ — $ 554 Share of income from Whistler investment 163 — — 163 Unrealized gain on revaluation of biological assets — 2,179 — 2,179 Production costs — 356 — 356 Inventory expensed to cost of sales — 384 — 384 Reversal of impairment loss on loan receivable 725 — — 725 Loss on revaluation of other investments (310 ) — — (310 ) Intercompany revenue 437 — (437 ) — Stock-based payments 307 — — 307 Interest expense 78 350 (196 ) (232 ) Depreciation 62 323 (2 ) 382 Net income (loss) (1,381 ) (379 ) 570 (1,190 ) Consolidated Statement of Financial Position Total assets $ 59,046 $ 16,429 $ (32,575 ) $ 42,900 Total liabilities 24,558 17,577 (32,912 ) 9,223 Shareholders’ equity $ 34,488 $ (1,148 ) $ 337 $ 33,677 Other information Property, plant and equipment $ 1,085 $ 10,872 $ 2,165 $ 14,122 Purchase of property, plant, and equipment — 1,496 27 1,523 |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2017 | |
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Financial instruments | 22. Financial instruments (i) Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s accounts receivable and loans receivable. The maximum exposure to credit risk is the carrying value of these financial assets. The Company provides credit to its customers in the normal course of business and has established credit evaluation and monitoring processes to mitigate credit risk. As at December 31, 2017, the value of its loans receivable was $314 (2016 - $309) and the value of its accounts receivable was $1,140 (2016 - $107). The Company is not significantly exposed to credit risk, as these receivables comprise 1.4% (2016 - 1.0%) of the Company’s total assets. As at December 31, 2017 89.3% (2016 - 27.5%) of the Company’s trade receivables were due from 2 customers (2016 - 1 customer). The following represents an analysis of the age of trade receivables as at December 31: 2017 2016 Current $ — $ — Less than 30 days past billing date 1,020 63 31 to 60 days past billing date 85 16 61 to 90 days past billing date 35 9 Over 90 days past billing date — 19 $ 1,140 $ 107 (ii) Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s policy is to review liquidity resources and ensure that sufficient funds are available to meet financial obligations as they become due. Further, the Company’s management is responsible for ensuring funds exist and are readily accessible to support business opportunities as they arise. The Company’s funding is provided in the form of capital raised through the issuance of shares and warrants. The following represents an analysis of the age of accounts payable as at December 31: 2017 2016 Current $ 5,922 $ 147 Less than 30 days past billing date 803 150 31 to 60 days past billing date 113 33 61 to 90 days past billing date 66 16 Over 90 days past billing date 172 240 $ 7,076 $ 586 (iii) Market risk (1) Price risk Price risk is the risk that the fair value of, or future cash flows from, the Company’s financial instruments will significantly fluctuate due to changes in market prices. The value of the financial instruments can be affected by changes in interest rates, market and economic conditions, and equity and commodity prices. The Company is exposed to price risk in divesting its investments, in that, unfavourable market conditions could result in dispositions of investments at less than favourable prices. Further, in the revaluation of securities classified as available-for-sale, write-downs The Company manages price risk by having a portfolio of securities from multiple issuers, such that the Company is not singularly exposed to any one issuer. The Company also has set thresholds on purchases of investments over which the approval of the Board of Directors is required. (2) Concentration risk Concentration risk is the risk that any single investment or group thereof, has the potential to materially affect the operating results of the Company. The Company is exposed to this risk as all of its investments are currently within the medical marijuana industry. As such, the Company’s financial results may be adversely affected by the unfavourable performance of those investments or the industry in which they operate. It is management’s opinion that the Company is not subject to significant interest rate risk. |
Fair value hierarchy
Fair value hierarchy | 12 Months Ended |
Dec. 31, 2017 | |
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Fair value hierarchy | 23. Fair value hierarchy Assets recorded at fair value on the consolidated statements of financial position are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: Level 1 - valuation based on quoted prices (unadjusted) in active markets for identical assets and liabilities. In these consolidated financial statements, cash and other investments (Canopy) are included in this category. Level 2 - valuation techniques based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. In these consolidated financial statements, AbCann share purchase warrants, and the Company’s options and warrants are included in this category. Level 3 - valuation techniques using the inputs for the asset or liability that are not based on observable market data. In these consolidated financial statements, other investments (Evergreen), and biological assets are included in this category. The Company’s policy for determining when transfers between levels of the fair value hierarchy occur is based on the date of the event or changes in circumstances that caused the transfer. During the year ended December 31, 2017, Hydropothecary and AbCann became publicly traded. Due to these events, the investments in shares of Hydropothecary and AbCann were transferred out of Level 3 as the inputs for the valuation of the investments were no longer unobservable. The investments in Hydropothecary and AbCann were transferred into Level 1 of the fair value hierarchy, as the valuation of the investments was based on quoted prices in an active market. As at December 31, 2017, all of these instruments were disposed of. There were no other transfers between levels during the years ended December 31, 2016 and 2017. |
Capital management
Capital management | 12 Months Ended |
Dec. 31, 2017 | |
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Capital management | 24. Capital management The Company’s objectives when managing its capital are to maintain sufficient capital base to: (i) meet its short-term obligations, (ii) sustain future operations and expansions, (iii) ensure its ability to continue as a going concern, and (iv) retain stakeholder confidence. The Company defines capital as its net assets, total assets less total liabilities. Currently, there are no quantitative criteria established as the Company is experiencing significant growth. As at December 31, 2017, the Company managed net assets of $86,368 (2016 - $33,677). |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2017 | |
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Subsequent events | 25. Subsequent events (a) On January 24, 2018, the Company announced the closing of a bought deal offering, pursuant to which the Company sold a total of 5,257,143 common shares at a price of $8.75 per common share for aggregate gross proceeds of approximately $46,000. The bought deal was completed by way of a short form prospectus offering in Canada. (b) Subsequent to December 31, 2017, 10,823,795 warrants were exercised in exchange for $2,223 in cash, and 82,692 warrants expired on January 18, 2018. (c) Subsequent to December 31, 2017, a total of 342,256 options were exercised in exchange for $522 in cash. These options had a weighted average exercise price of $1.53 per common share. (d) Subsequent to December 31, 2017, 430,000 options were granted to various employees, which vest evenly over a 48 month period, with a weighted average exercise price of $8.61 per common share. (e) Subsequent to December 31, 2017, the Company sold some of its shares of Canopy for proceeds of $687. (f) On March 9, 2018, Philip Illingworth filed a claim in the Supreme Court of British Columbia against Evergreen, its directors, Welton Construction Limited, 0611389 B.C. Ltd. and Hortican, claiming among other things, declarations and an order for specific performance that the plaintiff is the owner of 50% of the shares of Evergreen. It is the opinion of the Company that the plaintiff has not stated a valid claim against Hortican, and the Company intends to vigorously defend this claim. (g) In September 2017, the Company announced a strategic joint venture in Israel with the Israeli agricultural collective settlement Kibbutz Gan Shmuel (“ Gan Shmuel (h) In March 2018, the Company announced a strategic joint venture with MedMen Enterprises USA, LLC (“ MedMen MedMen Canada know-how (i) On April 6, 2018, the Company announced the closing of a bought deal offering, pursuant to which the Company sold a total of 10,420,000 common shares at a price of $9.60 per common share for aggregate gross proceeds of approximately $100,000. The common shares were offered in the United States pursuant to the Company’s effective registration statement on Form F-10 |
Significant accounting polici31
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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Revenue recognition | (a) Revenue recognition Revenue is recognized at the fair value of consideration received or receivable. Revenue from the sale of finished goods is recognized when the Company has transferred the significant risks and rewards of ownership to the buyer and collection is reasonably assured. The significant risks and rewards of ownership are considered to be transferred upon delivery. |
Equity accounted investments | (b) Equity accounted investments Significant influence is the power to participate in the financial and operating policy decisions of the investee without control or joint control over those decisions. Significant influence is presumed if the Company holds between 20% and 50% of the voting rights, unless evidence exists to the contrary. The Company has assessed that it has significant influence over its investment in Whistler Medical Marijuana Company. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Investees in which the Company has joint control and rights to the net assets thereof, are defined as joint ventures. The Company’s interests in Cronos Australia and Indigenous Roots LP are classified as joint ventures. Investees in which the Company has significant influence or joint control are accounted for using the equity method. The Company’s interest in an investee is initially recorded at cost and is subsequently adjusted for the Company’s share of changes in net assets of the investee, less any impairment in the value of individual investments, less any dividends paid. Where the Company transacts with an investee, unrealized profits and losses are eliminated to the extent of the Company’s interest in that investee. |
Biological assets | (c) Biological assets The Company measures biological assets, consisting of cannabis plants, at fair value less costs to sell. Agricultural produce, consisting of medical cannabis, is measured at fair value less costs to sell at the point of harvest, which becomes the basis for the cost of finished goods inventory after harvest. Gains and losses arising from changes in fair values less cost to sell during the period are included in the net income of the related year. |
Inventory | (d) Inventory Inventories of harvested finished goods, work-in-process, and raw materials are valued at the lower of cost and net realizable value. Inventories of harvested cannabis and work-in-process are transferred from biological assets at their fair value at the point of harvest, which becomes the initial deemed cost. Any subsequent post-harvest costs, including direct costs attributable to processing and related overheads, are capitalized to inventory to the extent that cost is less than net realizable value. Net realizable value is determined as the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated variable costs to sell. |
Intangible assets | (e) Intangible assets Intangible assets, which have indefinite useful lives, are recorded at cost less impairment losses, if any. Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Intangible assets with indefinite useful lives are not amortized, but are systematically tested for impairment annually in the fourth quarter or earlier if there is an indication of impairment. |
Property, plant and equipment | (f) Property, plant and equipment Property, plant, and equipment are stated at cost less accumulated depreciation. The assets are depreciated over their estimated useful lives using the following methods and rates: Method Rate Building structures Straight-line 15 to 20 years Furniture and equipment Straight-line 5 years Computer equipment Straight-line 3 years Security equipment Straight-line 5 years Production equipment Straight-line 7 years Road Straight-line 25 years Leasehold improvements Straight-line 5 to 10 years An asset’s residual value, useful life and depreciation method are reviewed at each financial year end and adjusted if appropriate. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate components. Construction in progress is not depreciated until it is completed and available for use. |
Provisions | (g) Provisions Provision for risks and expenses are recognized for probable outflows of resources that can be estimated and that result from present obligations resulting from past events. In the case where a potential obligation resulting from past events exists, but where occurrence of the outflow of resources is not probable or the estimate is not reliable, these contingent liabilities are disclosed as commitments and litigation. Provisions, if any, are measured based on management’s best estimates of outcomes on the basis of facts known at the reporting date. |
Share capital | (h) Share capital Share capital is presented at the fair value of the shares issued. Costs related to the issuance of shares are reported in equity, net of tax, as a deduction from the issuance proceeds. |
Foreign exchange translation | (i) Foreign exchange translation The consolidated financial statements of the Company are presented in Canadian dollars, which is the functional currency of the Company and all of its subsidiaries. Transactions in foreign currencies are recorded at the exchange rate prevailing at the date of the transaction. At each reporting date, foreign currency denominated monetary assets and liabilities are translated at year-end Non-monetary |
Income taxes | (j) Income taxes The Company accounts for its income taxes using the deferred tax assets and liabilities method. Deferred income tax assets and liabilities are determined based on the difference between the carrying amount and the tax basis of the assets and liabilities. Any change in the net amount of deferred income tax assets and liabilities is included in profit or loss or equity. Deferred income tax assets and liabilities are determined based on enacted or substantively enacted tax rates and laws which are expected to apply to taxable profit for the years in which the assets and liabilities will be recovered or settled. Deferred income tax assets are recognized when it is probable they will be realized. Deferred tax assets and liabilities are not discounted. |
Stock-based payments | (k) Stock-based payments Where equity instruments are granted to employees, they are recorded at the fair value of the equity instrument granted at the grant date. The grant date fair value is recognized in net income over the vesting period. Where equity instruments are granted to non-employees, The cost recognized for all equity-settled stock-based payments are reflected in share-based reserve, until the instruments are exercised. Upon exercise, shares are issued from treasury and the amount previously reflected in share-based reserve are, along with any proceeds paid upon exercise, credited to share capital. |
Earnings per share | (l) Earnings per share The Company presents basic and diluted earnings per share data for its common shares. Basic earnings per share is calculated by dividing the profit or loss attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined by adjusting the profit or loss attributable to common shareholders and the weighted average number of common shares outstanding, for the effects of all potentially dilutive common shares, which comprise warrants and stock options. |
Financial instruments | (m) Financial instruments The Company aggregates its financial instruments into classes based on their nature and characteristics. Management determines the classification when the instruments are initially recognized. All financial assets except those classified as fair value through profit or loss are reviewed at each reporting date to determine whether there is any indication of impairment. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. The Company’s accounting policy for each class of financial instruments is as follows: (i) Fair value through profit or loss Financial instruments classified as fair value through profit or loss are reported at fair value at each reporting date, and any change in fair value is recognized in net income in the period during which the change occurs. In these consolidated financial statements, cash and the investment in warrants of AbCann Global Corp. have been classified as fair value through profit or loss. (ii) Available-for-sale Financial instruments classified as available-for-sale are initially recorded at fair value at the time of acquisition, with transaction costs included in the amount initially recognized. Thereafter, at each reporting date, available-for-sale financial assets are recognized at fair value and the changes in fair value, other than impairment losses and foreign exchange losses, are recognized in other comprehensive income (loss) and presented in accumulated other comprehensive income in shareholders’ equity. In determining if the investment is impaired, the Company evaluates whether there is a significant or prolonged decline in the fair value of the investment. Significant or prolonged decline is defined as an unrealized loss at 50% or a decline under its cost over two consecutive fiscal years, respectively. When the financial assets are sold or an impairment write-down is required, gains or losses previously recognized in accumulated other comprehensive income are reclassified to profit or loss. In these consolidated financial statements, investments in Hydropothecary Corporation, Canopy Growth Corporation, AbCann Global Corp., and Evergreen Medicinal Supply Inc. have been classified as available-for-sale. (iii) Loans and receivables and other financial liabilities Financial instruments classified as loans and receivables and other financial liabilities are carried at amortized cost using the effective interest method. Transaction costs are included in the amount initially recognized. In these consolidated financial statements, accounts receivable, loans receivable, and other receivables have been classified as loans and receivables. Accounts payable and other liabilities, purchase price liability, mortgage payable, and construction loan payable have been classified as other financial liabilities. |
Significant accounting polici32
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Basis Depreciation of Property, Plant and Equipment | Property, plant, and equipment are stated at cost less accumulated depreciation. The assets are depreciated over their estimated useful lives using the following methods and rates: Method Rate Building structures Straight-line 15 to 20 years Furniture and equipment Straight-line 5 years Computer equipment Straight-line 3 years Security equipment Straight-line 5 years Production equipment Straight-line 7 years Road Straight-line 25 years Leasehold improvements Straight-line 5 to 10 years |
Acquisition of Peace Naturals (
Acquisition of Peace Naturals (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Schedule of Purchase Price Allocation for Acquisition | The purchase price allocation for this acquisition is shown below: Fair value of consideration transferred: Cash $ 6,248 Liability (i) 2,590 8,838 Fair value of previously held interest: Fair value of previously held interest immediately before acquisition 3,315 Loss due to fair value remeasurement at acquisition date (347 ) 2,968 $ 11,806 Fair value of net assets acquired: Cash $ 109 Accounts receivable 51 Prepaid and deposits 29 Inventory 1,194 Biological assets 866 Property and equipment 10,282 Goodwill 1,400 Health Canada license 9,596 Accounts payable and accrued liabilities (2,860 ) Loans payable (7,461 ) Deferred tax liability (1,400 ) $ 11,806 The Company finalized its assessment of the purchase price allocation during the year ended December 31, 2017. The allocation of the consideration paid remains consistent with the initial valuation. (i) During the year ended December 31, 2017, the full balance of the purchase price liability was repaid by the Company. |
Biological assets and invento34
Biological assets and inventory (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Schedule of Changes in Carrying Amount of Biological Assets | The Company’s biological assets consist of cannabis plants. The changes in the carrying amount of the biological assets are as follows: 2017 2016 Biological assets - beginning of year $ 1,795 $ — Gain on revaluation of biological assets 11,620 2,179 Increase due to acquisition of Peace Naturals — 866 Transferred to inventory upon harvest (9,693 ) (1,250 ) Biological assets - end of year $ 3,722 $ 1,795 |
Schedule of the Effect of Changes in Fair Values of Biological Assets and Inventory | The effect of changes in fair value of biological assets and inventory during the year include: 2017 2016 Unrealized change in fair value of biological assets $ (11,620 ) $ (2,179 ) Realized fair value increments on inventory sold during the year 3,956 266 Net effect of changes in fair value of biological assets and inventory $ (7,664 ) $ (1,913 ) |
Schedule of Biological Inventory | Inventory as at December 31 consists of the following: 2017 2016 Dry cannabis Finished goods $ 6,145 $ 1,502 Work-in-process 1,630 — 7,775 1,502 Cannabis oils Finished goods 332 — Raw materials 183 194 Supplies and consumables 126 212 $ 8,416 $ 1,908 |
Loans receivable (Tables)
Loans receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Information for Loans Receivable | 2017 2016 Loan receivable from Evergreen Medicinal Supply Inc. (“ Evergreen $ 309 $ 265 Loan receivable from Vert/Green Medical Inc. (“ Vert — 375 309 640 Add: Accrued interest 5 92 314 732 Less: Principal and interest received — (423 ) Loans receivable $ 314 $ 309 (i) The loan is due on demand, bearing interest at 8% per year, calculated and payable annually in arrears. (ii) During the year ended December 31, 2016, the full amount of the loan plus accrued interest was repaid and the previously recorded impairment loss was reversed. The loan was due on demand, and bore interest at 8% per year, calculated and payable semi-annually in arrears. |
Investment in Whistler (Tables)
Investment in Whistler (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summarized financial information of Whistler Medical Marijuana Company | Summarized financial information of Whistler is as follows: 2017 2016 Current assets $ 4,163 $ 2,233 Non-current 13,645 3,855 Current liabilities 3,676 1,649 Non-current — 865 Revenue $ 3,813 $ 2,817 Income from continuing operations 814 757 |
Reconciliation of the carrying amount of the investment | Reconciliation of the carrying amount of the investment is as follows: 2017 2016 Balance - beginning of the year $ 2,566 $ 2,405 Purchase of additional shares 1,076 — Company’s share of dividends paid — (2 ) Company’s share of income 165 163 Balance - end of the year $ 3,807 $ 2,566 |
Other investments (Tables)
Other investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of available-for sale investments and fair value through profit or loss investments | Other investments consist of investments in common shares and warrants of several companies in the medical cannabis industry. These investments, with the exception of shares of Evergreen Medicinal Supply Inc. and warrants of AbCann Global Corp., are traded in an active market, and as a result have a reliably measurable fair value. Available-for-sale 2017 2016 The Hydropothecary Corporation ( “Hydropothecary” $ — $ 412 Canopy Growth Corporation ( “Canopy” 877 337 AbCann Global Corp. ( “AbCann” — 3,073 Evergreen Medicinal Supply Inc. ( “Evergreen” 300 300 $ 1,177 $ 4,122 Fair value through profit or loss investment AbCann Global Corp. - share warrants (v) $ 170 $ 1,005 $ 1,347 $ 5,127 (i) During the year ended December 31, 2016, the Company received bonus shares pursuant to the original agreement, for $Nil consideration. The transaction price was less than the fair value at the date of receipt, and the gain of $25 on initial recognition was deferred as the fair value was based on other than level 1 inputs. The deferred gain was taken into income as factors that market participants would consider when valuing the shares had changed. The fair value of the shares was based on the share price of the financing that took place in December 2016. During the year ended December 31, 2017, BFK Capital Corp. acquired all of the outstanding shares of Hydropothecary, and began trading as Hydropothecary Corporation, (TSX-V:THCX). (ii) During the year ended December 31, 2016, Canopy acquired all of the outstanding shares of Vert. In exchange for shares in Vert, Canopy issued the former Vert shareholders, shares of Canopy. The fair value of the Canopy shares at the date of the transaction of $258 determined the proceeds on derecognition of the Vert shares. Since the gain was realized, it was recorded as income. The fair value of the Canopy shares at the date of the transaction was also the deemed cost of the Canopy shares. (iii) During the year ended December 31, 2017, the Company sold some of its shares of Canopy for proceeds of $88. During the year ended December 31, 2016, the Company received bonus shares pursuant to the original agreement, for $Nil consideration. The transaction price was less than the fair value at the date of receipt, and the gain of $75 on initial recognition was initially deferred as the fair value was based on other than level 1 inputs. During the year, the deferred gain was taken into income as factors that market participants would consider when valuing the shares had changed. The fair value of all of the shares was estimated based on a valuation of the investee’s peer group. During the year ended December 31, 2017, AbCann Medicinals Inc. performed a reverse takeover with Panda Capital Inc. As a result of this transaction, AbCann began trading as AbCann Global Corp. (TSX-V:ABCN). (iv) During the year ended December 31, 2016, management revised their estimate of the fair value of the investment back to its original value, based on management’s assessment of the likelihood Evergreen would receive a license to produce and sell medical marijuana. The gain on the revaluation of the investment has been recognized as other comprehensive income. (iv) During the year ended December 31, 2017, Evergreen received a cultivation license under the ACMPR. As a result, the Company completed its subscription for a second tranche of shares of Evergreen for $100 and exercised its option to acquire an additional 5% of the equity of Evergreen for $500, for a total additional investment of $600. However, Evergreen, through its counsel, has indicated that the Company is not entitled to any interest in Evergreen and has rejected the payment. The Company filed a statement of claim in the Supreme Court of British Columbia against Evergreen and its directors, seeking, among other things, declarations that the Company holds equity of Evergreen and that the agreement between the parties in respect of Evergreen’s equity is a valid and binding contract. Evergreen has filed a statement of defence. The Company intends to vigorously pursue the enforcement of its rights to acquire equity in Evergreen. (v) During the year ended December 31, 2016, the Company received bonus warrants pursuant to the original agreement, for $Nil consideration. The transaction price was less than the fair value at the date of receipt, and the gain of $24 on initial recognition was initially deferred as the fair value was based on other than level 1 inputs. During the year, the deferred gain on the bonus warrants and the original warrants was taken into income as factors that market participants would consider when valuing the warrants have changed. As at December 31, 2016, the fair value of the warrants was estimated using the Black-Scholes During the year ended December 31, 2017, the Company exercised 3,658,537 warrants for $2,268, for additional shares of AbCann. As at December 31, 2017, the fair value of the remaining 182,927 warrants was estimated using the Black-Scholes |
Summary of gains (losses) recognized through profit or loss and through other comprehensive income from changes in fair value and disposals of other investments | The gains recognized upon the increase in fair value on other investments is as follows: 2017 2016 The Hydropothecary Corporation (i) $ 657 $ 25 Canopy Growth Corporation (ii) 36 258 AbCann Global Corp. - shares (iii) 4,160 75 AbCann Global Corp. - share warrants (v) 5 1,005 Peace Naturals — (1,326 ) Peace Naturals - immediately before acquisition (Note 6) — (347 ) Gain (loss) recognized through profit-and-loss $ 4,858 $ (310 ) 2017 2016 The Hydropothecary Corporation (i) $ — $ 137 Canopy Growth Corporation (ii) 608 79 AbCann Global Corp. - shares (iii) — 1,498 Vert/Green Medical Inc. - shares — 300 Gain recognized through other comprehensive income $ 608 $ 2,014 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Property Plant and Equipment | Cost Balance at Additions As at December 31, Land $ 1,558 $ — $ 1,558 Building structures 2,761 8,757 11,518 Furniture and equipment 63 71 134 Computer equipment 88 60 148 Security equipment 474 412 886 Production equipment 2,106 375 2,481 Road 137 — 137 Leasehold improvements 1,429 68 1,497 Construction in progress 6,034 33,303 39,337 $ 14,650 $ 43,046 $ 57,696 Accumulated depreciation Balance at Additions As at December 31, Building structures $ 120 $ 313 $ 433 Furniture and equipment 18 25 43 Computer equipment 36 39 75 Security equipment 60 136 196 Production equipment 103 328 431 Road 5 5 10 Leasehold improvements 186 150 336 $ 528 $ 996 $ 1,524 Net book value $ 14,122 $ 56,172 Cost Balance at Additions Acquisitions As at Land $ 210 $ 623 $ 725 $ 1,558 Building structures 824 62 1,875 2,761 Furniture and equipment 27 — 36 63 Computer equipment 29 38 21 88 Security equipment 183 291 — 474 Production equipment 72 409 1,625 2,106 Road 137 — — 137 Leasehold improvements 1,363 66 — 1,429 Construction in progress — 34 6,000 6,034 $ 2,845 $ 1,523 $ 10,282 $ 14,650 Accumulated depreciation Balance at Additions As at Building structures $ 63 $ 57 $ 120 Furniture and equipment 8 10 18 Computer equipment 12 24 36 Security equipment 9 51 60 Production equipment 14 89 103 Road — 5 5 Leasehold improvements 40 146 186 $ 146 $ 382 $ 528 Net book value $ 2,699 $ 14,122 |
Intangible assets and goodwill
Intangible assets and goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Schedule of Detailed Information of Intangible Assets | Intangible assets Balance at Additions Balance at Additions Balance at Health Canada Licenses: OGBC $ 1,611 $ — $ 1,611 $ — $ 1,611 Peace Naturals (Note 6) — 9,596 9,596 — 9,596 $ 1,611 $ 9,596 $ 11,207 $ — $ 11,207 Goodwill Balance at Additions Balance at Additions Balance at OGBC $ 392 $ — $ 392 $ — $ 392 Peace Naturals (Note 6) — 1,400 1,400 — 1,400 $ 392 $ 1,400 $ 1,792 $ — $ 1,792 |
Summary of Key Assumptions Used in Estimation of Receivable Amounts of CGU | The key assumptions used in the estimation of the recoverable amounts were as follows: OGBC Peace Naturals Weighted average cost of capital (after-tax) 37.0 % 36.0 % Average growth rate* 490.0 % 140.0 % * The average growth rate is determined by summing the expected year-over-year |
Construction loan payable (Tabl
Construction loan payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Construction Loan Payable | 2017 2016 First advance $ 6,304 $ — Less: transaction costs (net of amortization) (1,122 ) — Add: accrued interest 185 — $ 5,367 $ — |
Share capital and reserves (Tab
Share capital and reserves (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Changes in Warrants | The following is a summary of the changes in warrants for the period from January 1, 2016 to December 31, 2017: Number of Grant date Exercise price warrants Amount Balance at January 1, 2016 15,795,422 $ 1,329 Issuance of warrants (i) May May 13 and 27, 2016 $ 0.245 32,432,425 2,832 Exercise of warrants July January 18, 2013 0.08 (55,000 ) — August October 1, 2013 0.24 (100,000 ) (15 ) October October 1, 2013 0.24 (661,505 ) (96 ) November October 25, 2015 0.31 (460,877 ) (31 ) November January 18, 2013 0.08 (422,443 ) (28 ) December December 18, 2013 0.24 (53,347 ) (1 ) December January 18, 2013 0.08 (511,252 ) (7 ) Expiry of warrants (78,251 ) — Balance at December 31, 2016 45,885,172 $ 3,983 Exercise of warrants January January 30, 2014 0.71 (375,565 ) (164 ) January January 18, 2013 0.08 (298,066 ) — March October 8, 2015 0.31 (1,140,351 ) (117 ) April October 28, 2015 0.31 (350,877 ) (66 ) April January 18, 2013 0.08 (744,198 ) — May January 18, 2013 0.08 (165,377 ) — May October 28, 2015 0.31 (192,982 ) (36 ) June January 18, 2013 0.08 (50,000 ) — July January 18, 2013 0.08 (248,066 ) — July October 28, 2015 0.31 (157,894 ) (30 ) August May 13, 2016 0.245 (2,300,000 ) (202 ) September May 27, 2016 0.245 (48,720 ) (4 ) September January 18, 2013 0.08 (951,064 ) — November January 18, 2013 0.08 (133,022 ) — December January 18, 2013 0.08 (55,126 ) — Expiry of warrants (19,210 ) — Balance at December 31, 2017 38,654,654 $ 3,364 (i) 32,432,425 units were issued in two private placements. Each unit consisted of one common share and one common share purchase warrant, for total consideration of $5,978. |
Changes in the number of other equity instruments (ie other than share options) | As at December 31, 2017, the Company has outstanding warrants as follows: Grant date Number of Exercise price Expiry January 18, 2013 2,981,476 $ 0.08 January 18, 2018 October 8, 2015 4,101,680 0.31 October 8, 2020 October 23, 2015 1,478,245 0.31 October 23, 2020 October 28, 2015 9,548 0.31 October 28, 2020 May 13, 2016 8,510,812 0.245 May 13, 2021 May 27, 2016 21,572,893 0.245 May 27, 2021 38,654,654 $ 0.242 |
Stock-based payments (Tables)
Stock-based payments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Changes in Options | The following is a summary of the changes in options for the period from January 1, 2016 to December 31, 2016: Grant date Exercise price Number of Amount Balance at January 1, 2016 1,610,003 $ 599 Issuance of options May May 17 and 27, 2016 $ 0.285 157,850 6 August August 5, 2016 0.50 1,225,000 30 October October 6, 2016 1.23 3,618,500 114 November Multiple Multiple 482,000 28 Exercise of options — August October 1, 2013 0.24 (213,390 ) (31 ) August May 17 and 27, 2016 0.285 (157,390 ) (6 ) October October 1, 2013 0.24 (32,008 ) (5 ) Expiry of options 0.96 (512,971 ) — Balance at December 31, 2016 6,177,594 $ 735 The following is a summary of the changes in options for the period from January 1, 2017 to December 31, 2017: Grant date Exercise price Number of Amount Balance at January 1, 2017 6,177,594 $ 735 Issuance of options April April 12, 2017 3.14 3,299,000 — August August 23, 2017 2.42 2,903,000 — November November 9, 2017 3.32 200,000 — Exercise of options January January 30, 2014 0.71 (32,009 ) (14 ) February August 5, 2014 1.15 (32,000 ) (23 ) March September 19, December 17, 2014 1.15 (171,695 ) (104 ) April August 5, 2014 1.15 (93,000 ) (66 ) April October 6, 2016 1.23 (30,416 ) (15 ) May August 5, 2014 1.15 (35,043 ) (25 ) July August 5, 2016 0.50 (83,333 ) (19 ) September October 6, 2016 1.23 (1,250 ) (1 ) December December 17, 2014 1.15 (92,500 ) (41 ) Expiry of options (404,598 ) — Vesting of issued options 1.15 — 1,862 Balance at December 31, 2017 11,603,750 $ 2,289 |
Summary of Outstanding and Exercisable Options | As at December 31, 2017, the Company had outstanding and exercisable options as follows: Weighted average Grant date Vesting terms Number of Exercise price Remaining August 5, 2016 Evenly over 48 months 1,141,666 $ 0.50 3.60 October 6, 2016 Evenly over 48 months 3,578,084 1.23 3.77 November 16, 2016 On May 15, 2017 300,000 1.50 0.37 November 21, 2016 Evenly over 48 months 182,000 1.84 3.88 April 12, 2017 Evenly over 48 months 3,299,000 3.14 4.28 August 23, 2017 Evenly over 48 months 2,903,000 2.42 4.65 November 9, 2017 Evenly over 48 months 200,000 3.32 4.86 Outstanding at December 31, 2017 11,603,750 $ 2.05 4.05 Exercisable at December 31, 2017 2,744,387 $ 1.71 3.57 |
Summary of Fair Value of Options | The fair value of the options was determined using the Black-Scholes 2017 2016 Share price at grant date $2.42 - $3.27 $0.19 - $1.77 Exercise price $2.42 - $3.32 $0.285 - $1.84 Risk free interest rate 0.96% - 1.59% 0.54% - 0.67% Expected life of options (years) 5 0.25 - 5 Expected annualized volatility 55% 55% - 150% Expected dividend yield 0% 0% Weighted average Black Scholes value at grant date $1.39 $0.43 |
Earnings (loss) per share (Tabl
Earnings (loss) per share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Basic and Diluted Earnings (loss) per Share | Basic and diluted earnings (loss) per share are calculated using the following numerators and denominators: Numerator 2017 2016 Net Income (loss) attributable to common shareholders $ 2,491 $ (1,190 ) Net Income (loss) used in computation of basic and diluted earnings (loss) per share $ 2,491 $ (1,190 ) Denominator 2017 2016 Weighted average number of common shares for computation of basic earnings (loss) per share 134,803,542 78,248,192 Dilutive effect of warrants 38,378,288 — Dilutive effect of options 3,607,331 — Weighted average number of common shares for computation of diluted earnings (loss) per share 176,789,161 78,248,192 |
Related party transactions an44
Related party transactions and balances (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Key Management Personnel | Key management personnel are persons responsible for planning, directing and controlling activities of an entity, and include management executives of the Company. Compensation provided to key management is as follows: 2017 2016 Short-term employee benefits, including salaries and fees $ 417 $ 264 Professional fees 234 171 Stock-based payments (i) 899 208 $ 1,550 $ 643 (i) Stock-based payments are comprised of $Nil (2016 - $129) of shares issued in lieu of compensation, and $899 (2016 - $79) in stock options provided to key management of the Company. Refer to Note 16. |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Minimum Operating Lease Obligations for Its Premises Due in Future Fiscal Years | The following is a summary of the Company’s minimum operating lease obligations for its premises due in future fiscal years: 2018 $ 81 2019 88 2020 92 2021 92 2022 95 Thereafter 8 $ 456 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Components of Tax Provision (Recovery) | The components of the income tax provision (recovery) include: 2017 2016 Current $ — $ — Deferred 298 (568 ) $ 298 $ (568 ) |
Reconciliation of Combined Canadian Federal and Provincial Statutory Income Tax Rate to Effective Tax Rate | The reconciliation of the combined Canadian federal and provincial statutory income tax rate of 26.5% (2016 - 26.5%) to the effective tax rate is as follows: 2017 2016 Income before income taxes $ 2,789 $ (1,758 ) Combined statutory tax rate 26.5 % 26.5 % Theoretical tax expense (recovery) $ 739 $ (466 ) Non-deductible Stock-based payments 494 81 Non-taxable Non-taxable (762 ) — Effect of provincial tax rate difference 5 4 Changes in unrecognized deferred tax assets (178 ) (187 ) Income tax expense (recovery) $ 298 $ (568 ) |
Summary of components of net deferred tax liability | The components of deferred tax are summarized below. Deferred tax assets and liabilities have been offset where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset. 2017 2016 Deferred tax assets Non-capital $ 5,690 $ 2,400 Scientific research and experimental development 28 28 Financing fees 31 — Deferred tax liabilities Biological assets (986 ) (18 ) Inventory (1,989 ) (51 ) Equity accounted investments (153 ) — Investments (91 ) (696 ) Property, plant and equipment (968 ) (158 ) Health Canada licenses (2,978 ) (2,962 ) Net deferred tax liability $ (1,416 ) $ (1,457 ) |
Summary of movement in net deferred tax liability | The movement in the net deferred tax liability is provided below: 2017 2016 Balance - beginning of year $ 1,457 $ 195 Recognized in income 298 (568 ) Recognized in other comprehensive income (339 ) 430 Recognized in goodwill — 1,400 Balance - end of year $ 1,416 $ 1,457 |
Summary of Net Deferred Tax Asset Not Recognized | 2017 2016 Property, plant and equipment $ 684 $ — Equity accounted investments — 89 Share and debt issuance costs (i) 2,834 1,085 Losses carried forward (ii) 7,814 3,833 Other investments — 6 (i) Share and debt issuance costs will be fully amortized in 2022. The remaining deductible temporary differences may be carried forward indefinitely. (ii) For income tax purposes, the Company has losses carried forward from prior years which can be used to reduce future years’ taxable income. These losses expire as follows: |
Summary of non-capital and farm losses carried forward to future years | For income tax purposes, the Company has losses carried forward from prior years which can be used to reduce future years’ taxable income. These losses expire as follows: Non-capital 2030 $ 32 2031 22 2032 877 2033 3,177 2034 1,782 2035 5,452 2036 6,558 2037 11,383 $ 29,283 |
Operating segment information (
Operating segment information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Detailed Report of Segments | For the year ended December 31, 2017: Investing Operating Inter-segment 2017 Statement of Operations Product sales $ — $ 4,082 $ — $ 4,082 Share of income from equity investment 165 — — 165 Unrealized gain on revaluation of biological assets — 11,620 — 11,620 Production costs — 3,983 — 3,983 Inventory expensed as cost of sales — 4,489 — 4,489 Gain on disposition and revaluation of other investments 4,858 — — 4,858 Intercompany revenue 624 — (624 ) — Stock-based compensation 1,862 — — 1,862 Interest expense 1 600 (475 ) 126 Depreciation 71 470 — 541 Net income (loss) (368 ) 3,382 (523 ) 2,491 Consolidated Statement of Financial Position Total assets $ 151,998 $ 70,198 $ (121,167 ) $ 101,029 Total liabilities 979 67,957 (54,275 ) 14,661 Shareholders’ equity $ 151,019 $ 2,241 $ (66,892 ) $ 86,368 Other information Property, plant and equipment $ 1,153 $ 53,175 $ 1,844 $ 56,172 Addition of property, plant, and equipment 138 42,908 — 43,046 For the year ended December 31, 2016: Investing Operating Inter-segment segment segment elimination 2016 Consolidated Statement of Operations Product sales $ — $ 554 $ — $ 554 Share of income from Whistler investment 163 — — 163 Unrealized gain on revaluation of biological assets — 2,179 — 2,179 Production costs — 356 — 356 Inventory expensed to cost of sales — 384 — 384 Reversal of impairment loss on loan receivable 725 — — 725 Loss on revaluation of other investments (310 ) — — (310 ) Intercompany revenue 437 — (437 ) — Stock-based payments 307 — — 307 Interest expense 78 350 (196 ) (232 ) Depreciation 62 323 (2 ) 382 Net income (loss) (1,381 ) (379 ) 570 (1,190 ) Consolidated Statement of Financial Position Total assets $ 59,046 $ 16,429 $ (32,575 ) $ 42,900 Total liabilities 24,558 17,577 (32,912 ) 9,223 Shareholders’ equity $ 34,488 $ (1,148 ) $ 337 $ 33,677 Other information Property, plant and equipment $ 1,085 $ 10,872 $ 2,165 $ 14,122 Purchase of property, plant, and equipment — 1,496 27 1,523 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Maturity Analysis of Trade Receivable | The following represents an analysis of the age of trade receivables as at December 31: 2017 2016 Current $ — $ — Less than 30 days past billing date 1,020 63 31 to 60 days past billing date 85 16 61 to 90 days past billing date 35 9 Over 90 days past billing date — 19 $ 1,140 $ 107 |
Summary of of maturity analysis of trade and other payables | The following represents an analysis of the age of accounts payable as at December 31: 2017 2016 Current $ 5,922 $ 147 Less than 30 days past billing date 803 150 31 to 60 days past billing date 113 33 61 to 90 days past billing date 66 16 Over 90 days past billing date 172 240 $ 7,076 $ 586 |
Nature of Business - Additional
Nature of Business - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Joint ventures [member] | |
Disclosure of nature of business [line Items] | |
Interest in joint venture | 50.00% |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018CAD ($)Offerings | Dec. 31, 2017CAD ($) | Dec. 31, 2016CAD ($) | |
Basis of presentation [line items] | |||
Cash flows from operations | $ 5,548 | $ 6,476 | |
Gross proceeds through common share offerings | 49,594 | $ 17,968 | |
Construction loans [member] | |||
Basis of presentation [line items] | |||
Additional liquidity available under construction loan | 33,696 | ||
Construction loans [member] | OGBC [member] | |||
Basis of presentation [line items] | |||
Additional liquidity available under construction loan | $ 5,000 | ||
Events After Reporting Period [Member] | |||
Basis of presentation [line items] | |||
Gross proceeds through common share offerings | $ 146,000 | ||
Number of common shares offering | Offerings | 2 |
Significant Accounting Polici51
Significant Accounting Policies - Summary of Basis Depreciation of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Building structures [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Method | Straight-line |
Rate | 15 to 20 years |
Furniture and equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Method | Straight-line |
Rate | 5 years |
Computer equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Method | Straight-line |
Rate | 3 years |
Security equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Method | Straight-line |
Rate | 5 years |
Road [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Method | Straight-line |
Rate | 25 years |
Production equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Method | Straight-line |
Rate | 7 years |
Leasehold improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Method | Straight-line |
Rate | 5 to 10 years |
Significant Accounting Polici52
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of information about accounting judgments and estimates [abstract] | |
Description of determining investment is impaired | Significant or prolonged decline is defined as an unrealized loss at 50% or a decline under its cost over two consecutive fiscal years, respectively. |
Acquisition of Peace Naturals -
Acquisition of Peace Naturals - Additional Information (Detail) - Peace Naturals [member] $ in Thousands | Sep. 06, 2016CAD ($) |
Disclosure of detailed information about business combination [line items] | |
Consideration for the acquisition at close | $ 6,248 |
Consideration for the acquisition to be paid once all conditions of the agreement are settled | $ 2,590 |
Consideration for the acquisition to be paid once all conditions of the agreement are settled, percentage | 30.00% |
Acquisition of Peace Naturals54
Acquisition of Peace Naturals - Schedule of Purchase Price Allocation for Acquisition (Detail) - CAD ($) $ in Thousands | Sep. 06, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Fair value of net assets acquired: | ||||
Goodwill | $ 1,792 | $ 1,792 | $ 392 | |
Peace Naturals [member] | ||||
Fair value of consideration transferred: | ||||
Cash | $ 6,248 | |||
Liability | 2,590 | |||
Fair value of consideration transferred | 8,838 | |||
Fair value of previously held interest: | ||||
Fair value of previously held interest immediately before acquisition | 3,315 | |||
Loss due to fair value remeasurement at acquisition date | (347) | |||
Fair value of previously held interest | 2,968 | |||
Fair value of net assets acquired | 11,806 | |||
Fair value of net assets acquired: | ||||
Cash | 109 | |||
Accounts receivable | 51 | |||
Prepaid and deposits | 29 | |||
Inventory | 1,194 | |||
Biological assets | 866 | |||
Property and equipment | 10,282 | |||
Goodwill | 1,400 | $ 1,400 | $ 1,400 | |
Health Canada license | 9,596 | |||
Accounts payable and accrued liabilities | (2,860) | |||
Loans payable | (7,461) | |||
Deferred tax liability | (1,400) | |||
Fair value of net assets acquired | $ 11,806 |
Biological Assets and Invento55
Biological Assets and Inventory - Schedule of Changes in Carrying Amount of Biological Assets (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in biological assets [abstract] | ||
Biological assets - beginning of year | $ 1,795 | |
Gain on revaluation of biological assets | 11,620 | $ 2,179 |
Increase due to acquisition of Peace Naturals | 866 | |
Transferred to inventory upon harvest | (9,693) | (1,250) |
Biological assets - end of year | $ 3,722 | $ 1,795 |
Biological Assets and Invento56
Biological Assets and Inventory - Schedule of the Effect of Changes in Fair Values of Biological Assets and Inventory (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in biological assets [abstract] | ||
Unrealized change in fair value of biological assets | $ (11,620) | $ (2,179) |
Realized fair value increments on inventory sold during the year | 3,956 | 266 |
Net effect of changes in fair value of biological assets and inventory | $ (7,664) | $ (1,913) |
Biological Assets and Invento57
Biological Assets and Inventory - Additional Information (Detail) Plant in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017CAD ($)kgPlantwkgl | Dec. 31, 2016CAD ($)kgPlant | |
Disclosure of reconciliation of changes in biological assets [line items] | ||
Average number of weeks | wk | 15 | |
Average harvest yield | g | 182 | |
Sensitivity in value of biological assets due to change in assumptions | $ | $ 9,693 | $ 1,250 |
Percentage of completion | 46.00% | 50.00% |
Expected canabis yield | kg | 1,695,000 | 213,000 |
Number of plants that are biological assets | Plant | 7,353 | 2,558 |
Work in process | kg | 243 | 0 |
Canabis seeds | kg | 0.288 | 0.298 |
Harvest yield per plant [member] | ||
Disclosure of reconciliation of changes in biological assets [line items] | ||
Percentage of decrease in harvest yield per plant | 5.00% | |
Sensitivity in value of biological assets due to change in assumptions | $ | $ 181 | $ 110 |
Sensitivity analysis [member] | ||
Disclosure of reconciliation of changes in biological assets [line items] | ||
Percentage of decrease in sale price per gram | 5.00% | |
Sensitivity in value of biological assets due to change in assumptions | $ | $ 227 | 88 |
Sensitivity in value of inventories due to change in assumptions | $ | $ 443 | $ 68 |
Dry cannabis [member] | ||
Disclosure of reconciliation of changes in biological assets [line items] | ||
Finished goods | kg | 815 | 236 |
Cannabis oils [member] | ||
Disclosure of reconciliation of changes in biological assets [line items] | ||
Finished goods | l | 137 |
Biological Assets and Invento58
Biological Assets and Inventory - Schedule of Biological Inventory (Detail) - CAD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about biological assets [line items] | ||
Inventory | $ 8,416 | $ 1,908 |
Dry cannabis [member] | ||
Disclosure of detailed information about biological assets [line items] | ||
Finished goods | 6,145 | 1,502 |
Work-in-process | 1,630 | |
Inventory | 7,775 | 1,502 |
Cannabis oils [member] | ||
Disclosure of detailed information about biological assets [line items] | ||
Finished goods | 332 | |
Raw materials | 183 | 194 |
Supplies and consumables | $ 126 | $ 212 |
Loans Receivable - Summary of I
Loans Receivable - Summary of Information for Loans Receivable (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of loans receivable [line items] | ||
Loan receivable excluding accrued interest | $ 309 | $ 640 |
Add: Accrued interest | 5 | 92 |
Loan receivable including principal and interest received | 314 | 732 |
Less: Principal and interest received | (423) | |
Loans receivable | 314 | 309 |
Evergreen Medicinal Supply Inc. [member] | ||
Disclosure of loans receivable [line items] | ||
Loan receivable excluding accrued interest | $ 309 | $ 265 |
Interest rate | 8.00% | 8.00% |
Vert/Green Medical Inc. [member] | ||
Disclosure of loans receivable [line items] | ||
Loan receivable excluding accrued interest | $ 375 | |
Interest rate | 8.00% |
Investment in Whistler Medical
Investment in Whistler Medical Marijuana Company - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Whistler Medical Marijuana Company [member] | ||
Disclosure of associates [line items] | ||
Interest in associate | 20.30% | 21.50% |
Investment in Whistler Medica61
Investment in Whistler Medical Marijuana Company - Summarized financial information of Whistler Medical Marijuana Company (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of associates [line items] | ||
Current assets | $ 26,704 | $ 8,086 |
Current liabilities | 7,878 | 7,766 |
Revenue | 4,082 | 554 |
Income from continuing operations | 2,491 | (1,190) |
Whistler Medical Marijuana Company [member] | ||
Disclosure of associates [line items] | ||
Current assets | 4,163 | 2,233 |
Non-current assets | 13,645 | 3,855 |
Current liabilities | 3,676 | 1,649 |
Non-current liabilities | 865 | |
Revenue | 3,813 | 2,817 |
Income from continuing operations | $ 814 | $ 757 |
Investment in Whistler Medica62
Investment in Whistler Medical Marijuana Company - Reconciliation of the carrying amount of the investment (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of associates [line items] | ||
Balance - beginning of the year | $ 2,566 | |
Balance - end of the year | 3,807 | $ 2,566 |
Whistler Medical Marijuana Company [member] | ||
Disclosure of associates [line items] | ||
Balance - beginning of the year | 2,566 | 2,405 |
Purchase of additional shares | 1,076 | |
Company's share of dividends paid | (2) | |
Company's share of income | 165 | 163 |
Balance - end of the year | $ 3,807 | $ 2,566 |
Other Investments - Summary of
Other Investments - Summary of Other Investments (Detail) - CAD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other investments [line items] | ||
Available-for-sale investment | $ 1,177 | $ 4,122 |
Other investments | 1,347 | 5,127 |
The Hydropothecary Corporation [member] | ||
Other investments [line items] | ||
Available-for-sale investment | 412 | |
Canopy Growth Corporation [member] | ||
Other investments [line items] | ||
Available-for-sale investment | 877 | 337 |
AbCann Global Corp. [member] | ||
Other investments [line items] | ||
Available-for-sale investment | 3,073 | |
Fair value through profit or loss investment | 170 | 1,005 |
Evergreen Medicinal Supply Inc. [member] | ||
Other investments [line items] | ||
Available-for-sale investment | $ 300 | $ 300 |
Other Investments - Summary o64
Other Investments - Summary of Other Investments (Parenthetical) (Detail) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other investments [line items] | |||
Bonus share received | $ 0 | ||
Gain deferred on bonus shares | 25,000 | ||
Share price | $ 3.66 | $ 0.52 | |
Number of warrants outstanding | 38,654,654 | 45,885,172 | 15,795,422 |
Top of range [member] | |||
Other investments [line items] | |||
Share price | $ 3.27 | $ 1.77 | |
Bottom of range [member] | |||
Other investments [line items] | |||
Share price | 2.42 | 0.19 | |
The Hydropothecary Corporation [member] | |||
Other investments [line items] | |||
Proceed from sale of shares | 932,000 | ||
Canopy Growth Corporation [member] | |||
Other investments [line items] | |||
Proceeds from derecognition of vert shares | 258,000 | ||
Proceed from sale of shares | $ 88,000 | ||
AbCann Global Corp. [member] | |||
Other investments [line items] | |||
Warrant exercised | 3,658,537 | ||
Bonus share received | 0 | ||
Cash paid to exercise warrants | $ 2,268,000 | ||
Gain deferred on bonus shares | 75,000 | ||
Bonus warrant received | 0 | ||
Deferred gain | $ 24,000 | ||
Assumptions used to calculate fair value of warrants,risk free rate | 1.66% | ||
Assumptions used to calculate fair value of warrants,volatility | 65.00% | 65.00% | |
Share price | $ 1.53 | $ 0.80 | |
Assumptions used to calculate fair value of warrants,expected life | 9 months 3 days | ||
Assumptions used to calculate fair value of warrants,dividend yield | 0.00% | 0.00% | |
Number of warrants outstanding | 182,927 | ||
AbCann Global Corp. [member] | Top of range [member] | |||
Other investments [line items] | |||
Assumptions used to calculate fair value of warrants,risk free rate | 0.60% | ||
Assumptions used to calculate fair value of warrants,expected life | 8 months 12 days | ||
AbCann Global Corp. [member] | Bottom of range [member] | |||
Other investments [line items] | |||
Assumptions used to calculate fair value of warrants,risk free rate | 0.73% | ||
Assumptions used to calculate fair value of warrants,expected life | 1 year 8 months 12 days | ||
Evergreen Medicinal Supply Inc. [member] | |||
Other investments [line items] | |||
Subscription of second tranche of shares | 100,000 | ||
Option exercised for the acquisition of equity | $ 500,000 | ||
Option exercised to acquire additional equity percentage | 5.00% | ||
Total additional investment subscribed but not received | $ 600,000 | ||
Panda Capital Inc [member] | |||
Other investments [line items] | |||
Shares purchased in reverse takeover | 1,270,000 | ||
Cash payment for shares purchased | $ 1,016,000 | ||
Proceed from sale of shares | $ 9,859,000 |
Other Investments - Summary o65
Other Investments - Summary of Gains Recognized Upon Increase in Fair Value on Other Investments (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Gains Recognized Upon The Increase In Fair Value On Other Investments [line items] | ||
Gain (loss) recognized through profit-and-loss | $ 4,858 | $ (310) |
Gain recognized through other comprehensive income | 608 | 2,014 |
The Hydropothecary Corporation [member] | ||
Gains Recognized Upon The Increase In Fair Value On Other Investments [line items] | ||
Gain (loss) recognized through profit-and-loss | 657 | 25 |
Gain recognized through other comprehensive income | 137 | |
Canopy Growth Corporation [member] | ||
Gains Recognized Upon The Increase In Fair Value On Other Investments [line items] | ||
Gain (loss) recognized through profit-and-loss | 36 | 258 |
Gain recognized through other comprehensive income | 608 | 79 |
AbCann Global Corp. [member] | ||
Gains Recognized Upon The Increase In Fair Value On Other Investments [line items] | ||
Gain (loss) recognized through profit-and-loss | 4,160 | 75 |
Gain recognized through other comprehensive income | 1,498 | |
AbCann Global Corp. [member] | Warrant [member] | ||
Gains Recognized Upon The Increase In Fair Value On Other Investments [line items] | ||
Gain (loss) recognized through profit-and-loss | $ 5 | 1,005 |
Peace Naturals Project Inc. [member] | ||
Gains Recognized Upon The Increase In Fair Value On Other Investments [line items] | ||
Gain (loss) recognized through profit-and-loss | (1,326) | |
Peace Naturals Project Inc. [member] | Acquisitions [Member] | ||
Gains Recognized Upon The Increase In Fair Value On Other Investments [line items] | ||
Gain (loss) recognized through profit-and-loss | (347) | |
VertMedical Inc. [member] | ||
Gains Recognized Upon The Increase In Fair Value On Other Investments [line items] | ||
Gain recognized through other comprehensive income | $ 300 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property Plant and Equipment (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | $ 14,122 | $ 2,699 |
Additions | 43,046 | |
Ending Balance | 56,172 | 14,122 |
Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 528 | 146 |
Additions | 996 | 382 |
Ending Balance | 1,524 | 528 |
Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 14,650 | 2,845 |
Additions | 43,046 | 1,523 |
Acquisitions | 10,282 | |
Ending Balance | 57,696 | 14,650 |
Building structures [member] | Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 120 | 63 |
Additions | 313 | 57 |
Ending Balance | 433 | 120 |
Building structures [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 2,761 | 824 |
Additions | 8,757 | 62 |
Acquisitions | 1,875 | |
Ending Balance | 11,518 | 2,761 |
Furniture and equipment [member] | Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 18 | 8 |
Additions | 25 | 10 |
Ending Balance | 43 | 18 |
Furniture and equipment [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 63 | 27 |
Additions | 71 | |
Acquisitions | 36 | |
Ending Balance | 134 | 63 |
Computer equipment [member] | Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 36 | 12 |
Additions | 39 | 24 |
Ending Balance | 75 | 36 |
Computer equipment [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 88 | 29 |
Additions | 60 | 38 |
Acquisitions | 21 | |
Ending Balance | 148 | 88 |
Security equipment [member] | Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 60 | 9 |
Additions | 136 | 51 |
Ending Balance | 196 | 60 |
Security equipment [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 474 | 183 |
Additions | 412 | 291 |
Ending Balance | 886 | 474 |
Production equipment [member] | Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 103 | 14 |
Additions | 328 | 89 |
Ending Balance | 431 | 103 |
Production equipment [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 2,106 | 72 |
Additions | 375 | 409 |
Acquisitions | 1,625 | |
Ending Balance | 2,481 | 2,106 |
Road [member] | Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 5 | |
Additions | 5 | 5 |
Ending Balance | 10 | 5 |
Road [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 137 | 137 |
Ending Balance | 137 | 137 |
Leasehold improvements [member] | Accumulated depreciation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 186 | 40 |
Additions | 150 | 146 |
Ending Balance | 336 | 186 |
Leasehold improvements [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 1,429 | 1,363 |
Additions | 68 | 66 |
Ending Balance | 1,497 | 1,429 |
Land [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 1,558 | 210 |
Additions | 623 | |
Acquisitions | 725 | |
Ending Balance | 1,558 | 1,558 |
Construction in progress [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 6,034 | |
Additions | 33,303 | 34 |
Acquisitions | 6,000 | |
Ending Balance | $ 39,337 | $ 6,034 |
Property, Plant and Equipment67
Property, Plant and Equipment - Additional Information (Detail) - CAD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure - Property, Plant and Equipment - Additional Information [Abstract] | ||
Non-cash additions from capitalization | $ 345,000 | $ 0 |
Transferred out of construction in progress to building structures | 6,034,000 | 0 |
Depreciation expense is recorded as part of inventory expensed to cost of sales, production costs, and general and administration | $ 455,000 | $ 0 |
Intangible Assets and Goodwil68
Intangible Assets and Goodwill - Other Intangible Assets (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | $ 11,207 | $ 1,611 |
Additions | 0 | 9,596 |
Intangible assets, ending balance | 11,207 | 11,207 |
OGBC [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | 1,611 | 1,611 |
Additions | 0 | 0 |
Intangible assets, ending balance | 1,611 | 1,611 |
Peace Naturals [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets, beginning balance | 9,596 | 0 |
Additions | 0 | 9,596 |
Intangible assets, ending balance | $ 9,596 | $ 9,596 |
Intangible Assets and Goodwil69
Intangible Assets and Goodwill - Goodwill (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill beginning balance | $ 1,792 | $ 392 |
Additions | 0 | 1,400 |
Goodwill ending balance | 1,792 | 1,792 |
OGBC [member] | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill beginning balance | 392 | 392 |
Goodwill ending balance | 392 | 392 |
Peace Naturals [member] | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill beginning balance | 1,400 | |
Additions | 1,400 | |
Goodwill ending balance | $ 1,400 | $ 1,400 |
Intangible Assets and Goodwil70
Intangible Assets and Goodwill - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of reconciliation of changes in goodwill [abstract] | |
Cash flow projection period | Five-year |
Intangible Assets and Goodwil71
Intangible Assets and Goodwill - Summary of Key Assumptions Used in Estimation of Receivable Amounts of CGU (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
OGBC [member] | |
Disclosure of information for cash-generating units [line items] | |
Weighted average cost of capital (after-tax) | 37.00% |
Average growth rate determined by summing the expected year over year growth rate in EBITDA then dividing by five years | 490.00% |
Peace Naturals [member] | |
Disclosure of information for cash-generating units [line items] | |
Weighted average cost of capital (after-tax) | 36.00% |
Average growth rate determined by summing the expected year over year growth rate in EBITDA then dividing by five years | 140.00% |
Mortgage Payable - Additional I
Mortgage Payable - Additional Information (Detail) - Peace Naturals [member] $ in Thousands | Sep. 06, 2016CAD ($) |
Disclosure of financial assets [line items] | |
Principal balance of mortgage loans | $ 4,000 |
Interest-bearing percentage | 12.00% |
Construction Loan Payable - Sum
Construction Loan Payable - Summary of Construction Loan Payable (Detail) $ in Thousands | Dec. 31, 2017CAD ($) |
Disclosure of construction loan payable [Abstract] | |
First advance | $ 6,304 |
Less: transaction costs (net of amortization) | (1,122) |
Add: accrued interest | 185 |
Construction Loan Payable, Total | $ 5,367 |
Construction Loan Payable - Add
Construction Loan Payable - Additional Information (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Aug. 23, 2017 | |
Disclosure of construction loan payable [line items] | ||
Term of loan | The term of the loan is two years, with the borrower's option to extend for another twelve months. | |
Land [member] | Construction loans [member] | ||
Disclosure of construction loan payable [line items] | ||
Book value of property pledged as guarantee | $ 1,558 | |
Peace Naturals [member] | Romspen Investment Corporation [member] | Construction loans [member] | ||
Disclosure of construction loan payable [line items] | ||
Maximum amount of funds that could be drawn by the entity | $ 40,000 | |
Borrowings interest rate | 12.00% | |
Peace Naturals [member] | Romspen Investment Corporation [member] | Construction loans [member] | Top of range [member] | ||
Disclosure of construction loan payable [line items] | ||
Maximum amount of funds that could be drawn by the entity | $ 35,000 | |
Appraisal value of property | $ 8,000 |
Share Capital and Reserves - Ad
Share Capital and Reserves - Additional Information (Detail) - CAD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of classes of share capital [line items] | ||
Par value | $ 0 | |
Common shares | 1,150,000 | |
Price per share at which convertible debt was converted | $ 115 | |
Shares held in escrow | 0 | 3,233,992 |
Private placements [member] | ||
Disclosure of classes of share capital [line items] | ||
Number of units, consisting of one share and one share purchase warrant, issued | 32,432,425 | |
Number of common shares received per each unit | 1 | |
Number of warrant to purchase common shares received per each unit | 1 | |
Consideration received | $ 20,928 | |
Private placements [member] | Ordinary shares [member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares issued | 6,671,112 | 75,289,565 |
Consideration received | $ 15,010 | |
Shares issued to employees in lieu of compensation | $ 129 | |
Deal one [member] | Ordinary shares [member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares issued | 7,705,000 | |
Consideration received | $ 17,336 | |
Deal two [member] | Ordinary shares [member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares issued | 5,476,190 | |
Consideration received | $ 17,248 |
Share Capital and Reserves - Su
Share Capital and Reserves - Summary of Changes in Warrants (Detail) - CAD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of changes in warrants [line items] | ||
Beginning balance | 45,885,172 | 15,795,422 |
Exercise price of warrants exercised | $ 0.242 | |
Number of warrants expired | (19,210) | (78,251) |
Ending balance | 38,654,654 | 45,885,172 |
Beginning balance | $ 3,983 | $ 1,329 |
Amount of warrants expired | 0 | 0 |
Ending balance | $ 3,364 | $ 3,983 |
Warrants grant date Eighteen January 2013 [member] | ||
Disclosure of changes in warrants [line items] | ||
Exercise price of warrants exercised | $ 0.080 | |
Ending balance | 2,981,476 | |
Warrants grant date Eight October 2015 [member] | ||
Disclosure of changes in warrants [line items] | ||
Exercise price of warrants exercised | $ 0.310 | |
Ending balance | 4,101,680 | |
Warrants grant date twenty eight October 2015 [member] | ||
Disclosure of changes in warrants [line items] | ||
Exercise price of warrants exercised | $ 0.310 | |
Ending balance | 9,548 | |
Warrants grant date thirteen May 2016 [member] | ||
Disclosure of changes in warrants [line items] | ||
Exercise price of warrants exercised | $ 0.245 | |
Ending balance | 8,510,812 | |
May Two Thousand Sixteen Issuance Of Warrants [Member] | Warrants grant date thirteen and twenty seven may two thousand sixteen [member] | ||
Disclosure of changes in warrants [line items] | ||
Exercise price of warrants issued | $ 0.245 | |
Grant date | May 13 and 27, 2016 | |
Number of warrants issued | 32,432,425 | |
Amount of warrants issued | $ 2,832 | |
July 2016 exercise of warrants [member] | Warrants grant date Eighteen January 2013 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | January 18, 2013 | |
Exercise price of warrants exercised | $ 0.08 | |
Number of warrants exercised | (55,000) | |
August 2016 exercise of warrants [member] | Warrants grant date One October 2013 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | October 1, 2013 | |
Exercise price of warrants exercised | $ 0.24 | |
Number of warrants exercised | (100,000) | |
Amount of warrants exercised | $ (15) | |
October 2016 exercise of warrants [member] | Warrants grant date One October 2013 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | October 1, 2013 | |
Exercise price of warrants exercised | $ 0.24 | |
Number of warrants exercised | (661,505) | |
Amount of warrants exercised | $ (96) | |
November 2016 exercise of warrants [member] | Warrants grant date Eighteen January 2013 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | January 18, 2013 | |
Exercise price of warrants exercised | $ 0.08 | |
Number of warrants exercised | (422,443) | |
Amount of warrants exercised | $ (28) | |
November 2016 exercise of warrants [member] | Warrants Grant Date Twenty Fiive October Two thousand Fifteen[Member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | October 25, 2015 | |
Exercise price of warrants exercised | $ 0.31 | |
Number of warrants exercised | (460,877) | |
Amount of warrants exercised | $ (31) | |
December 2016 exercise of warrants [member] | Warrants grant date Eighteen January 2013 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | January 18, 2013 | |
Exercise price of warrants exercised | $ 0.08 | |
Number of warrants exercised | (511,252) | |
Amount of warrants exercised | $ (7) | |
December 2016 exercise of warrants [member] | Warrants grant date Eighteen December 2013 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | December 18, 2013 | |
Exercise price of warrants exercised | $ 0.24 | |
Number of warrants exercised | (53,347) | |
Amount of warrants exercised | $ (1) | |
January 2017 Exercise of Warrants [Member] | Warrants grant date Eighteen January 2013 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | January 18, 2013 | |
Exercise price of warrants exercised | $ 0.08 | |
Number of warrants exercised | (298,066) | |
January 2017 Exercise of Warrants [Member] | Warrants grant date thirty January 2014 [Member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | January 30, 2014 | |
Exercise price of warrants exercised | $ 0.71 | |
Number of warrants exercised | (375,565) | |
Amount of warrants exercised | $ (164) | |
March 2017 exercise of warrants [member] | Warrants grant date Eight October 2015 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | October 8, 2015 | |
Exercise price of warrants exercised | $ 0.31 | |
Number of warrants exercised | (1,140,351) | |
Amount of warrants exercised | $ (117) | |
April 2017 exercise of warrants [Member] | Warrants grant date Eighteen January 2013 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | January 18, 2013 | |
Exercise price of warrants exercised | $ 0.08 | |
Number of warrants exercised | (744,198) | |
April 2017 exercise of warrants [Member] | Warrants grant date twenty eight October 2015 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | October 28, 2015 | |
Exercise price of warrants exercised | $ 0.31 | |
Number of warrants exercised | (350,877) | |
Amount of warrants exercised | $ (66) | |
May 2017 exercise of warrants [member] | Warrants grant date Eighteen January 2013 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | January 18, 2013 | |
Exercise price of warrants exercised | $ 0.08 | |
Number of warrants exercised | (165,377) | |
May 2017 exercise of warrants [member] | Warrants grant date twenty eight October 2015 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | October 28, 2015 | |
Exercise price of warrants exercised | $ 0.31 | |
Number of warrants exercised | (192,982) | |
Amount of warrants exercised | $ (36) | |
June 2017 exercise of warrants [member] | Warrants grant date Eighteen January 2013 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | January 18, 2013 | |
Exercise price of warrants exercised | $ 0.08 | |
Number of warrants exercised | (50,000) | |
July 2017 exercise of warrants [member] | Warrants grant date Eighteen January 2013 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | January 18, 2013 | |
Exercise price of warrants exercised | $ 0.08 | |
Number of warrants exercised | (248,066) | |
July 2017 exercise of warrants [member] | Warrants grant date twenty eight October 2015 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | October 28, 2015 | |
Exercise price of warrants exercised | $ 0.31 | |
Number of warrants exercised | (157,894) | |
Amount of warrants exercised | $ (30) | |
August 2017 exercise of warrants [member] | Warrants grant date thirteen May 2016 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | May 13, 2016 | |
Exercise price of warrants exercised | $ 0.245 | |
Number of warrants exercised | (2,300,000) | |
Amount of warrants exercised | $ (202) | |
September 2017 exercise of warrants [member] | Warrants grant date Eighteen January 2013 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | January 18, 2013 | |
Exercise price of warrants exercised | $ 0.08 | |
Number of warrants exercised | (951,064) | |
September 2017 exercise of warrants [member] | Warrants grant date Twenty Seventeen May 2016 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | May 27, 2016 | |
Exercise price of warrants exercised | $ 0.245 | |
Number of warrants exercised | (48,720) | |
Amount of warrants exercised | $ (4) | |
November 2017 exercise of warrants [member] | Warrants grant date Eighteen January 2013 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | January 18, 2013 | |
Exercise price of warrants exercised | $ 0.08 | |
Number of warrants exercised | (133,022) | |
December 2017 exercise of warrants [member] | Warrants grant date Eighteen January 2013 [member] | ||
Disclosure of changes in warrants [line items] | ||
Grant date | January 18, 2013 | |
Exercise price of warrants exercised | $ 0.08 | |
Number of warrants exercised | (55,126) |
Share Capital and Reserves - 77
Share Capital and Reserves - Summary of Changes in Warrants (Parenthetical) (Detail) - May Two Thousand Sixteen Issuance Of Warrants [Member] - Warrants grant date thirteen and twenty seven may two thousand sixteen [member] $ in Thousands | 12 Months Ended |
Dec. 31, 2016CAD ($)Unitshares | |
Disclosure of changes in warrants [line items] | |
Number of units, consisting of one share and one share purchase warrant, issued | 32,432,425 |
Number of private placements | Unit | 2 |
Number of common shares received per each unit | 1 |
Number of warrant to purchase common shares received per each unit | 1 |
Proceeds from issue of warrants | $ | $ 5,978 |
Share Capital and Reserves - 78
Share Capital and Reserves - Summary of Warrants Outstanding (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of warrants outstanding | 38,654,654 | 45,885,172 | 15,795,422 |
Exercise price | $ 0.242 | ||
Warrants grant date Eighteen January 2013 [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of warrants outstanding | 2,981,476 | ||
Exercise price | $ 0.080 | ||
Expiry | January 18, 2018 | ||
Warrants grant date Eight October 2015 [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of warrants outstanding | 4,101,680 | ||
Exercise price | $ 0.310 | ||
Expiry | October 8, 2020 | ||
Warrants grant date Twenty Three October 2015 [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of warrants outstanding | 1,478,245 | ||
Exercise price | $ 0.310 | ||
Expiry | October 23, 2020 | ||
Warrants grant date twenty eight October 2015 [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of warrants outstanding | 9,548 | ||
Exercise price | $ 0.310 | ||
Expiry | October 28, 2020 | ||
Warrants grant date thirteen May 2016 [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of warrants outstanding | 8,510,812 | ||
Exercise price | $ 0.245 | ||
Expiry | May 13, 2021 | ||
Warrants grant date twenty seven May 2016 [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of warrants outstanding | 21,572,893 | ||
Exercise price | $ 0.245 | ||
Expiry | May 27, 2021 |
Stock-based Payments - Addition
Stock-based Payments - Additional Information (Detail) - CAD ($) | Jun. 28, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Percentage of maximum number of options that may be granted relative to total common shares outstanding | 10.00% | ||
Weighted average share price | $ 3.66 | $ 0.52 | |
Vesting description | These options shall expire at the earlier of 180 days of the death, disability or incapacity of the holder or five years after the date of issue, and can only be settled in equity. | ||
Options expire period | 5 years | ||
Weighted average exercise price of options outstanding | $ 2.05 | 1.10 | |
Weighted average exercise price of options exercisable | 1.71 | 1.09 | |
Stock-based compensation | $ 1,862,000 | $ 307,000 | |
Death, disability and Incapacity of Holder [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Options expire period | 180 days |
Stock-based Payments - Summary
Stock-based Payments - Summary of Changes in Options (Detail) | 12 Months Ended | |
Dec. 31, 2017CAD ($) | Dec. 31, 2016CAD ($) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of options, Beginning balance | 6,177,594 | 1,610,003 |
Share options, Vesting of issued options | $ 1,862,000 | |
Weighted average exercise price, Expiry of options | $ 0.96 | |
Weighted average exercise price, Vesting of issued options | $ 1.15 | |
Number of options, Expiry of options | (404,598) | (512,971) |
Number of options, Vesting of issued options | 0 | |
Number of options, Ending balance | 11,603,750 | 6,177,594 |
Share options, Beginning balance | $ 735,000 | $ 599,000 |
Share options, Ending balance | $ 2,289,000 | $ 735,000 |
May 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options, Grant date | May 17 and 27, 2016 | |
Weighted average exercise price, Issuance of options | $ 0.285 | |
Number of options, Issuance of options | 157,850 | |
Share options, Issuance of options | $ 6,000 | |
August 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of options, Beginning balance | ||
Options, Grant date | August 5, 2016 | |
Weighted average exercise price, Issuance of options | $ 0.50 | |
Number of options, Issuance of options | 1,225,000 | |
Number of options, Ending balance | 1,141,666 | |
Share options, Issuance of options | $ 30,000 | |
October 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of options, Beginning balance | ||
Options, Grant date | October 6, 2016 | |
Weighted average exercise price, Issuance of options | $ 1.23 | |
Number of options, Issuance of options | 3,618,500 | |
Number of options, Ending balance | 3,578,084 | |
Share options, Issuance of options | $ 114,000 | |
Multiple [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options, Grant date | Multiple | |
Number of options, Issuance of options | 482,000 | |
Share options, Issuance of options | $ 28,000 | |
October 2013 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options, Grant date | October 1, 2013 | |
Weighted average exercise price, Exercise of options | $ 0.24 | |
Number of options, Exercise of options | (213,390) | |
Share options, Exercise of options | $ (31,000) | |
May 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options, Grant date | May 17 and 27, 2016 | |
Weighted average exercise price, Exercise of options | $ 0.285 | |
Number of options, Exercise of options | (157,390) | |
Share options, Exercise of options | $ (6,000) | |
October 2013 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options, Grant date | October 1, 2013 | |
Weighted average exercise price, Exercise of options | $ 0.24 | |
Number of options, Exercise of options | (32,008) | |
Share options, Exercise of options | $ (5,000) | |
April 2017 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of options, Beginning balance | ||
Options, Grant date | April 12, 2017 | |
Weighted average exercise price, Issuance of options | $ 3.14 | |
Number of options, Issuance of options | 3,299,000 | |
Number of options, Ending balance | 3,299,000 | |
August 2017 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of options, Beginning balance | ||
Options, Grant date | August 23, 2017 | |
Weighted average exercise price, Issuance of options | $ 2.42 | |
Number of options, Issuance of options | 2,903,000 | |
Number of options, Ending balance | 2,903,000 | |
November 2017 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of options, Beginning balance | ||
Options, Grant date | November 9, 2017 | |
Weighted average exercise price, Issuance of options | $ 3.32 | |
Number of options, Issuance of options | 200,000 | |
Number of options, Ending balance | 200,000 | |
January 2014 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options, Grant date | January 30, 2014 | |
Weighted average exercise price, Exercise of options | $ 0.71 | |
Number of options, Exercise of options | (32,009) | |
Share options, Exercise of options | $ (14,000) | |
August 2014 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options, Grant date | August 5, 2014 | |
Weighted average exercise price, Exercise of options | $ 1.15 | |
Number of options, Exercise of options | (32,000) | |
Share options, Exercise of options | $ (23,000) | |
September and December 2014 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options, Grant date | September 19, December 17, 2014 | |
Weighted average exercise price, Exercise of options | $ 1.15 | |
Number of options, Exercise of options | (171,695) | |
Share options, Exercise of options | $ (104,000) | |
August 2014 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options, Grant date | August 5, 2014 | |
Weighted average exercise price, Exercise of options | $ 1.15 | |
Number of options, Exercise of options | (93,000) | |
Share options, Exercise of options | $ (66,000) | |
October 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options, Grant date | October 6, 2016 | |
Weighted average exercise price, Exercise of options | $ 1.23 | |
Number of options, Exercise of options | (30,416) | |
Share options, Exercise of options | $ (15,000) | |
August 2014 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options, Grant date | August 5, 2014 | |
Weighted average exercise price, Exercise of options | $ 1.15 | |
Number of options, Exercise of options | (35,043) | |
Share options, Exercise of options | $ (25,000) | |
August 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options, Grant date | August 5, 2016 | |
Weighted average exercise price, Exercise of options | $ 0.50 | |
Number of options, Exercise of options | (83,333) | |
Share options, Exercise of options | $ (19,000) | |
October 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options, Grant date | October 6, 2016 | |
Weighted average exercise price, Exercise of options | $ 1.23 | |
Number of options, Exercise of options | (1,250) | |
Share options, Exercise of options | $ (1,000) | |
December 2014 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options, Grant date | December 17, 2014 | |
Weighted average exercise price, Exercise of options | $ 1.15 | |
Number of options, Exercise of options | (92,500) | |
Share options, Exercise of options | $ (41,000) |
Stock-based Payments - Summar81
Stock-based Payments - Summary of Outstanding and Exercisable Options (Detail) | 12 Months Ended | ||
Dec. 31, 2017CAD ($)yr | Dec. 31, 2016CAD ($) | Dec. 31, 2015 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of options | 11,603,750 | 6,177,594 | 1,610,003 |
Number of options, Exercisable | 2,744,387 | ||
Weighted average exercise price | $ | $ 2.05 | $ 1.10 | |
Weighted average exercise price, Exercisable | $ | $ 1.71 | $ 1.09 | |
Weighted average remaining contractual life (years) | yr | 4.05 | ||
Weighted average remaining contractual life (years), Exercisable | yr | 3.57 | ||
August 2016 [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vested terms of options | Evenly over 48 months | ||
Number of options | 1,141,666 | ||
Weighted average exercise price | $ | $ 0.50 | ||
Weighted average remaining contractual life (years) | yr | 3.60 | ||
October 2016 [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vested terms of options | Evenly over 48 months | ||
Number of options | 3,578,084 | ||
Weighted average exercise price | $ | $ 1.23 | ||
Weighted average remaining contractual life (years) | yr | 3.77 | ||
November 2016 [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vested terms of options | On May 15, 2017 | ||
Number of options | 300,000 | ||
Weighted average exercise price | $ | $ 1.50 | ||
Weighted average remaining contractual life (years) | yr | 0.37 | ||
November 2016 [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vested terms of options | Evenly over 48 months | ||
Number of options | 182,000 | ||
Weighted average exercise price | $ | $ 1.84 | ||
Weighted average remaining contractual life (years) | yr | 3.88 | ||
April 2017 [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vested terms of options | Evenly over 48 months | ||
Number of options | 3,299,000 | ||
Weighted average exercise price | $ | $ 3.14 | ||
Weighted average remaining contractual life (years) | yr | 4.28 | ||
August 2017 [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vested terms of options | Evenly over 48 months | ||
Number of options | 2,903,000 | ||
Weighted average exercise price | $ | $ 2.42 | ||
Weighted average remaining contractual life (years) | yr | 4.65 | ||
November 2017 [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Vested terms of options | Evenly over 48 months | ||
Number of options | 200,000 | ||
Weighted average exercise price | $ | $ 3.32 | ||
Weighted average remaining contractual life (years) | yr | 4.86 |
Stock-based Payments - Summar82
Stock-based Payments - Summary of Fair Value of Options (Detail) | 12 Months Ended | |
Dec. 31, 2017CAD ($)yr | Dec. 31, 2016CAD ($)yr | |
Disclosure of assumptions used to estimate fair value of stock options [line items] | ||
Share price at grant date | $ 3.66 | $ 0.52 |
Exercise price | $ 0.280 | |
Risk free interest rate | 0.54% | |
Expected life of options (years) | yr | 5 | |
Expected annualized volatility | 55.00% | |
Expected dividend yield | 0.00% | 0.00% |
Weighted average Black Scholes value at grant date | $ 1.39 | $ 0.43 |
Bottom of range [member] | ||
Disclosure of assumptions used to estimate fair value of stock options [line items] | ||
Share price at grant date | 2.42 | 0.19 |
Exercise price | $ 2.420 | $ 0.285 |
Risk free interest rate | 0.96% | 0.54% |
Expected life of options (years) | yr | 0.25 | |
Expected annualized volatility | 55.00% | |
Top of range [member] | ||
Disclosure of assumptions used to estimate fair value of stock options [line items] | ||
Share price at grant date | $ 3.27 | $ 1.77 |
Exercise price | $ 3.320 | $ 1.840 |
Risk free interest rate | 1.59% | 0.67% |
Expected life of options (years) | yr | 5 | |
Expected annualized volatility | 150.00% |
Earnings (Loss) Per Share - Sum
Earnings (Loss) Per Share - Summary of Basic and Diluted Earnings (Loss) Per Share (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator | ||
Net Income (loss) attributable to common shareholders | $ 2,491 | $ (1,190) |
Net Income (loss) used in computation of basic and diluted earnings (loss) per share | $ 2,491 | $ (1,190) |
Denominator | ||
Weighted average number of common shares for computation of basic earnings (loss) per share | 134,803,542 | 78,248,192 |
Dilutive effect of warrants | 38,378,288 | |
Dilutive effect of options | 3,607,331 | |
Weighted average number of common shares for computation of diluted earnings (loss) per share | 176,789,161 | 78,248,192 |
Related Party Transactions an84
Related Party Transactions and Balances - Summary of Key Management Personnel (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [abstract] | ||
Short-term employee benefits, including salaries and fees | $ 417 | $ 264 |
Professional fees | 234 | 171 |
Stock-based payments | 899 | 208 |
Total compensation | $ 1,550 | $ 643 |
Related Party Transactions an85
Related Party Transactions and Balances - Summary of Key Management Personnel (Parenthetical) (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [abstract] | ||
Stock-based compensation, shares issued in lieu of compensation | $ 0 | $ 129 |
Stock-based compensation, issued to key management | $ 899 | $ 79 |
Related Party Transactions an86
Related Party Transactions and Balances - Additional Information (Detail) $ in Thousands | May 27, 2016CAD ($)shares | Dec. 31, 2017CAD ($) | Dec. 31, 2016CAD ($) |
Disclosure of transactions between related parties [line items] | |||
Share based compensation expense | $ 1,862 | $ 178 | |
Members of key management [member] | |||
Disclosure of transactions between related parties [line items] | |||
Balance payable to key management | $ 0 | $ 86 | |
Board of director [member] | |||
Disclosure of transactions between related parties [line items] | |||
Number of options issued | 1,800,000 | 1,616,000 | |
Share based compensation expense | $ 601 | $ 49 | |
Board of director [member] | Private placement 1 [member] | |||
Disclosure of transactions between related parties [line items] | |||
Number of units issued | shares | 810,810 | ||
Consideration received | $ 150 | ||
Shareholders' [member] | |||
Disclosure of transactions between related parties [line items] | |||
Number of units issued | shares | 4,665,187 | ||
Consideration received | $ 863 |
Commitments and contingencies -
Commitments and contingencies - Summary of Minimum Operating Lease Obligations for Its Premises Due in Future Fiscal Years (Detail) $ in Thousands | Dec. 31, 2017CAD ($) |
Disclosure of maturity analysis of operating lease payments [line items] | |
Minimum operating lease obligations | $ 456 |
2018 [member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Minimum operating lease obligations | 81 |
2019 [member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Minimum operating lease obligations | 88 |
2020 [member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Minimum operating lease obligations | 92 |
2021 [member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Minimum operating lease obligations | 92 |
2022 [member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Minimum operating lease obligations | 95 |
Later Than Five Years And Thereafter [Member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Minimum operating lease obligations | $ 8 |
Commitments and contingencies88
Commitments and contingencies - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017CAD ($)Plantshares | |
Plants claim [member] | |
Disclosure of contingent liabilities [line items] | |
Claims related to contingencies | $ 12,000 |
Number of Cannabis plants death | Plant | 12 |
Claim related to death of per plant | $ 1,000 |
Medcann Access Acquisition Claim [member] | |
Disclosure of contingent liabilities [line items] | |
Claims related to contingencies | 15,000 |
Warrants Claim [member] | |
Disclosure of contingent liabilities [line items] | |
Claims related to contingencies | 250 |
Former employees' unlawful termination claims [member] | |
Disclosure of contingent liabilities [line items] | |
Claims related to contingencies | $ 580 |
Number of options claimed | shares | 30,000 |
Former employees' unlawful termination claims [member] | Peace Naturals [member] | |
Disclosure of contingent liabilities [line items] | |
Claims related to contingencies | $ 12,682 |
Percentage of equity interest claimed | 10.00% |
Income Taxes - Components of Ta
Income Taxes - Components of Tax Provision (Recovery) (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Major components of tax expense (income) [abstract] | ||
Current | $ 0 | $ 0 |
Deferred | 298 | (568) |
Tax provision (recovery) | $ 298 | $ (568) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax (Expense) Benefits [abstract] | ||
Combined statutory tax rate | 26.50% | 26.50% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Combined Canadian Federal and Provincial Statutory Income Tax Rate to Effective Tax Rate (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax (Expense) Benefits [abstract] | ||
Income before income taxes | $ 2,789 | $ (1,758) |
Combined statutory tax rate | 26.50% | 26.50% |
Theoretical tax expense (recovery) | $ 739 | $ (466) |
Stock-based payments | 494 | 81 |
Non-taxable portion of capital gains | (762) | |
Effect of provincial tax rate difference | 5 | 4 |
Changes in unrecognized deferred tax assets | (178) | (187) |
Income tax expense (recovery) | $ 298 | $ (568) |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred Tax (Detail) - CAD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax liabilities | |||
Deferred tax liabilities | $ (1,416) | $ (1,457) | |
Net deferred tax liability | (1,416) | (1,457) | $ (195) |
Non-capital losses carried forward [member] | |||
Deferred tax assets | |||
Deferred tax assets | 5,690 | 2,400 | |
SR&ED [member] | |||
Deferred tax assets | |||
Deferred tax assets | 28 | 28 | |
Inventory [member] | |||
Deferred tax liabilities | |||
Deferred tax liabilities | (1,989) | (51) | |
Property, plant and equipments [member] | |||
Deferred tax liabilities | |||
Deferred tax liabilities | (968) | (158) | |
Financing Fees [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 31 | ||
Equity Accounted Investments [Member] | |||
Deferred tax liabilities | |||
Deferred tax liabilities | (153) | ||
Investment [member] | |||
Deferred tax liabilities | |||
Deferred tax liabilities | (91) | (696) | |
Health Canada License [member] | |||
Deferred tax liabilities | |||
Deferred tax liabilities | (2,978) | (2,962) | |
Biological assets [member] | |||
Deferred tax liabilities | |||
Deferred tax liabilities | $ (986) | $ (18) |
Income Taxes - Summary of Movem
Income Taxes - Summary of Movement in Net Deferred Tax Liability (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | ||
Balance - beginning of year | $ 1,457 | $ 195 |
Recognized in income | 298 | (568) |
Recognized in other comprehensive income | (339) | 430 |
Recognized in goodwill | 1,400 | |
Balance - end of year | $ 1,416 | $ 1,457 |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Tax Asset Not Recognized (Detail) - CAD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Share and debt issuance costs [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred tax asset not recognized | $ 2,834 | $ 1,085 |
Losses carried forward [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred tax asset not recognized | 7,814 | 3,833 |
Other investments [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred tax asset not recognized | 6 | |
Property, plant and equipment [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred tax asset not recognized | $ 684 | |
Equity accounted investments [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred tax asset not recognized | $ 89 |
Income Taxes - Summary of Unuse
Income Taxes - Summary of Unused Non-capital and Farm Losses (Detail) - Unused tax losses [member] $ in Thousands | 12 Months Ended |
Dec. 31, 2017CAD ($) | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Unused non-capital and farm losses | $ 29,283 |
2030 [member] | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Unused non-capital and farm losses | 32 |
2031 [member] | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Unused non-capital and farm losses | 22 |
2032 [member] | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Unused non-capital and farm losses | 877 |
2033 [member] | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Unused non-capital and farm losses | 3,177 |
2034 [member] | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Unused non-capital and farm losses | 1,782 |
2035 [member] | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Unused non-capital and farm losses | 5,452 |
2036 [member] | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Unused non-capital and farm losses | 6,558 |
2037 [member] | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |
Unused non-capital and farm losses | $ 11,383 |
Operating Segment Information -
Operating Segment Information - Additional Information (Detail) - Segment | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of operating segments [abstract] | ||
Number of operating segments | 2 | 2 |
Operating Segment Information97
Operating Segment Information - Detailed Report of Segments (Detail) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of operating segments [line items] | |||
Product sales | $ 4,082 | $ 554 | |
Share of income from equity/Whistler investment | 165 | 163 | |
Unrealized gain on revaluation of biological assets | 11,620 | 2,179 | |
Production costs | 3,983 | 356 | |
Inventory expensed as cost of sales | 4,489 | 384 | |
Reversal of impairment loss on loan receivable | 725 | ||
Gain (loss) on disposition and revaluation of other investments | 4,858 | (310) | |
Stock-based compensation | 1,862 | 307 | |
Interest expense | 126 | (232) | |
Depreciation | 541 | 382 | |
Net income (loss) | 2,491 | (1,190) | |
Total assets | 101,029 | 42,900 | |
Total liabilities | 14,661 | 9,223 | |
Shareholders' equity | 86,368 | 33,677 | $ 11,703 |
Property, plant and equipment | 56,172 | 14,122 | $ 2,699 |
Purchase of property, plant, and equipment | 42,701 | 1,523 | |
Addition of property, plant, and equipment | 43,046 | ||
Inter-segment elimination [member] | |||
Disclosure of operating segments [line items] | |||
Intercompany revenue | (624) | (437) | |
Interest expense | (475) | (196) | |
Depreciation | (2) | ||
Net income (loss) | (523) | 570 | |
Total assets | (121,167) | (32,575) | |
Total liabilities | (54,275) | (32,912) | |
Shareholders' equity | (66,892) | 337 | |
Property, plant and equipment | 1,844 | 2,165 | |
Purchase of property, plant, and equipment | 27 | ||
Investing segment [member] | Operating Segments [member] | |||
Disclosure of operating segments [line items] | |||
Share of income from equity/Whistler investment | 165 | 163 | |
Reversal of impairment loss on loan receivable | 725 | ||
Gain (loss) on disposition and revaluation of other investments | 4,858 | (310) | |
Intercompany revenue | 624 | 437 | |
Stock-based compensation | 1,862 | 307 | |
Interest expense | 1 | 78 | |
Depreciation | 71 | 62 | |
Net income (loss) | (368) | (1,381) | |
Total assets | 151,998 | 59,046 | |
Total liabilities | 979 | 24,558 | |
Shareholders' equity | 151,019 | 34,488 | |
Property, plant and equipment | 1,153 | 1,085 | |
Addition of property, plant, and equipment | 138 | ||
Operating segment [member] | Operating Segments [member] | |||
Disclosure of operating segments [line items] | |||
Product sales | 4,082 | 554 | |
Unrealized gain on revaluation of biological assets | 11,620 | 2,179 | |
Production costs | 3,983 | 356 | |
Inventory expensed as cost of sales | 4,489 | 384 | |
Interest expense | 600 | 350 | |
Depreciation | 470 | 323 | |
Net income (loss) | 3,382 | (379) | |
Total assets | 70,198 | 16,429 | |
Total liabilities | 67,957 | 17,577 | |
Shareholders' equity | 2,241 | (1,148) | |
Property, plant and equipment | 53,175 | 10,872 | |
Purchase of property, plant, and equipment | $ 1,496 | ||
Addition of property, plant, and equipment | $ 42,908 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - Credit risk [member] $ in Thousands | 12 Months Ended | |
Dec. 31, 2017CAD ($)Customer | Dec. 31, 2016CAD ($)Customer | |
Disclosure of detailed information about financial instruments [line items] | ||
Loans receivable | $ 314 | $ 309 |
Accounts receivable | $ 1,140 | $ 107 |
Percentages of receivables | 1.40% | 1.00% |
Trade receivables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Percentage Of Trade Receivable | 89.30% | 27.50% |
Number Of Customers | Customer | 2 | 1 |
Financial Instruments - Summary
Financial Instruments - Summary of Analysis of Age of Trade Receivables (Detail) - Credit risk [member] - CAD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||
Analysis of the age of trade receivables | $ 1,140 | $ 107 |
Less than 30 days past billing date [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Analysis of the age of trade receivables | 1,020 | 63 |
31 to 60 days past billing date [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Analysis of the age of trade receivables | 85 | 16 |
61 to 90 days past billing date [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Analysis of the age of trade receivables | $ 35 | 9 |
Over 90 days past billing date [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Analysis of the age of trade receivables | $ 19 |
Financial Instruments - Summ100
Financial Instruments - Summary of Analysis of Age of Trade Payables (Detail) - Liquidity risk [member] - CAD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||
Analysis of the age of trade payables | $ 7,076 | $ 586 |
Current [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Analysis of the age of trade payables | 5,922 | 147 |
Less than 30 days past billing date [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Analysis of the age of trade payables | 803 | 150 |
31 to 60 days past billing date [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Analysis of the age of trade payables | 113 | 33 |
61 to 90 days past billing date [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Analysis of the age of trade payables | 66 | 16 |
Over 90 days past billing date [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Analysis of the age of trade payables | $ 172 | $ 240 |
Capital Management - Additional
Capital Management - Additional Information (Detail) - CAD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of capital management [abstract] | |||
Equity | $ 86,368 | $ 33,677 | $ 11,703 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Apr. 06, 2018CAD ($)$ / sharesshares | Jan. 24, 2018CAD ($)$ / sharesshares | Jan. 18, 2018shares | Jan. 01, 2018CAD ($)$ / sharesshares | Mar. 31, 2018 | Dec. 31, 2017CAD ($)shares | Dec. 31, 2016CAD ($)shares |
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Number of warrants expired | shares | 19,210 | 78,251 | |||||
Options exercised in exchange of cash | $ 591,000 | $ 104,000 | |||||
Options granted with weighted average exercise price | 0.280 | ||||||
Proceeds from issuing shares | 49,594,000 | 17,968,000 | |||||
Bottom of range [member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Options granted with weighted average exercise price | $ 2.420 | $ 0.285 | |||||
Kibbutz Gan Shmuel [Member] | Nursery and Cultivation Operations [Member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Equity interest in the joint venture | 70.00% | ||||||
Kibbutz Gan Shmuel [Member] | Manufacturing and Distribution Operations [Member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Equity interest in the joint venture | 90.00% | ||||||
Over Allotment Option [Member] | Bought Deal Offering [Member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Number of common shares issued | shares | 5,257,143 | ||||||
Share price per share | $ / shares | $ 8.75 | ||||||
Gross proceeds from issue of shares | $ 46,000,000 | ||||||
Warrants [member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Number of warrants exercised | shares | 10,823,795 | ||||||
Warrants exercised in exchange of cash | $ 2,223,000 | ||||||
Number of warrants expired | shares | 82,692 | ||||||
Expiry date of the warrants | January 18, 2018 | ||||||
Major ordinary share transactions [member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Proceeds from issuing shares | $ 100,000,000 | $ 687,000 | |||||
Shares issued, shares | shares | 10,420,000 | ||||||
Stock, Price Per Share | $ / shares | $ 9.60 | ||||||
Options [member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Number of share options exercised | 342,256 | ||||||
Options exercised in exchange of cash | $ 522,000 | ||||||
Options granted with weighted average exercise price | $ 1.53 | ||||||
Number of options granted | 430,000 | ||||||
Options granted vesting period | 48 months | ||||||
Options granted exercise price | $ / shares | $ 8.61 | ||||||
Joint venture [Member] | Kibbutz Gan Shmuel [Member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Cash advanced for construction of building | $ 1,000,000 | ||||||
Major business combination [member] | MedMen Canada Inc [Member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
Equity interest in the joint venture | 50.00% | ||||||
Major business combination [member] | MedMen Canada Inc [Member] | Bottom of range [member] | |||||||
Disclosure of non-adjusting events after reporting period [line items] | |||||||
License term | 20 years |