Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | FSD Pharma Inc. |
Entity Central Index Key | 0001771885 |
Entity Current Reporting Status | Yes |
Current Fiscal Year End Date | --12-31 |
Document Type | 40-F/A |
Document Period End Date | Dec. 31, 2019 |
Entity Common Stock, Shares Outstanding | 7,056,245 |
Amendment Flag | false |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Interactive Data Current | Yes |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - CAD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash | $ 7,932,737 | $ 21,134,930 |
Trade and other receivables | 2,070,055 | 990,988 |
Prepaid expenses and deposits | 430,381 | 444,099 |
Inventory | 942,939 | |
Biological assets | 0 | 0 |
Total current assets | 11,376,112 | 22,570,017 |
Non-current assets | ||
Other investments | 11,780,864 | 18,064,541 |
Right-of-use asset, net | 127,410 | 0 |
Property, plant and equipment, net | 11,804,145 | 12,141,676 |
Intangible assets, net | 22,358,932 | 0 |
Total assets | 57,447,463 | 52,776,234 |
Current liabilities | ||
Trade and other payables | 4,467,826 | 1,743,806 |
Lease obligations | 56,207 | |
Derivative liability | 2,646,269 | |
Notes payable | 1,908,412 | |
Total current liabilities | 9,078,714 | 1,743,806 |
Non-current liabilities | ||
Lease obligations | 146,662 | |
Total liabilities | 9,225,376 | 1,743,806 |
SHAREHOLDERS' EQUITY | ||
Share capital | 98,016,649 | 68,117,802 |
Warrant reserve | 5,745,034 | 4,442,145 |
Contributed surplus | 23,091,099 | 4,977,300 |
Foreign exchange translation reserve | (112,690) | |
Accumulated deficit | (78,518,005) | (26,504,819) |
Total equity | 48,222,087 | 51,032,428 |
Equity and liabilities | 57,447,463 | 52,776,234 |
Class A shares | ||
SHAREHOLDERS' EQUITY | ||
Share capital | 201,500 | 201,500 |
Total equity | 201,500 | 201,500 |
Class B shares | ||
SHAREHOLDERS' EQUITY | ||
Share capital | 97,815,149 | 67,916,302 |
Total equity | $ 97,815,149 | $ 67,916,302 |
CONSOLIDATED STATEMENTS OF LOSS
CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS - CAD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [abstract] | ||
Revenue | $ 257,099 | |
Cost of revenue | 1,959,111 | |
Gross loss before fair value adjustments | (1,702,012) | |
Fair value adjustments on inventory sold | 22,249 | |
Unrealized loss on changes in fair value of biological assets | 682,739 | |
Gross loss | (2,407,000) | |
Expenses | ||
General and administrative | 14,811,529 | $ 18,740,360 |
Share-based payments | 16,061,319 | 6,440,406 |
Depreciation and amortization | 3,146,680 | 183,194 |
Allowance for impairment of Auxly funds | 7,499,977 | |
Impairment of property, plant and equipment and right-of-use asset | 243,468 | |
Total operating expenses | 34,262,996 | 32,863,937 |
Loss from operations | (36,669,996) | (32,863,937) |
Other income | (125,536) | (88,763) |
Finance expense | 206,454 | |
Loss on settlement of financial liability | 24,810 | |
Loss on change in fair value of derivative liability | 3,568,305 | |
Loss (gain) on changes in fair value of other investments | 11,669,157 | (10,064,550) |
Net loss | (52,013,186) | (22,710,624) |
Items that may be subsequently reclassified to income: | ||
Exchange loss on translation of foreign operations | (112,690) | |
Comprehensive loss | $ (52,125,876) | $ (22,710,624) |
Net loss per share - basic and diluted (in dollars per share) | $ (7.37) | $ (3.85) |
Weighted average number of shares outstanding - basic and diluted | 7,056,245 | 5,905,252 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY - CAD ($) | Class A shares | Class B shares | Warrants | Contributed surplus | Foreign exchange translation reserve | Accumulated Deficit | Total |
Beginning balance at Dec. 31, 2017 | $ 201,500 | $ 12,794,963 | $ 2,116,900 | $ 1,495,300 | $ (4,195,264) | $ 12,413,399 | |
Beginning balance (shares) at Dec. 31, 2017 | 72 | 3,794,846 | 354,996 | ||||
Shares issued | $ 47,853,745 | 47,853,745 | |||||
Shares issued (shares) | 2,268,035 | ||||||
Share issuance costs | $ (6,634,405) | (6,634,405) | |||||
Reverse acquisition | $ 9,868,179 | $ 118,875 | 25,725 | 10,012,779 | |||
Reverse acquisition (shares) | 545,505 | 37,313 | |||||
Warrant valuations | $ (2,366,670) | $ 2,366,670 | |||||
Warrant valuations (shares) | 198,835 | ||||||
Share based payments | $ 294,287 | 6,146,119 | 6,440,406 | ||||
Share options exercised | $ 5,145,825 | (2,288,775) | 2,857,050 | ||||
Share options exercised (shares) | 190,463 | ||||||
Share options cancelled | (401,069) | 401,069 | |||||
Warrants exercised | $ 1,254,665 | $ (454,587) | 800,078 | ||||
Warrants exercised (shares) | 44,931 | (44,932) | |||||
Net comprehensive loss for the period | (22,710,624) | (22,710,624) | |||||
Ending balance at Dec. 31, 2018 | $ 201,500 | $ 67,916,302 | $ 4,442,145 | 4,977,300 | (26,504,819) | 51,032,428 | |
Ending balance (shares) at Dec. 31, 2018 | 72 | 6,843,780 | 546,212 | ||||
Shares issued | $ 11,539,417 | 11,539,417 | |||||
Shares issued (shares) | 408,651 | ||||||
Issued on acquisition of net assets of Prismic Pharmaceuticals, Inc. | $ 16,431,818 | $ 1,888,086 | 2,567,306 | 20,887,210 | |||
Issued on acquisition of net assets of Prismic Pharmaceuticals, Inc. (shares) | 510,940 | 67,598 | |||||
Share based payments | 16,061,319 | 16,061,319 | |||||
Share options exercised | $ 1,782,438 | (1,049,840) | 732,598 | ||||
Share options exercised (shares) | 130,189 | ||||||
Warrants exercised | $ 145,174 | $ (50,183) | 94,991 | ||||
Warrants exercised (shares) | 12,167 | (12,167) | |||||
Warrants expired | $ (535,014) | 535,014 | |||||
Warrants expired (shares) | (134,192) | ||||||
Net comprehensive loss for the period | $ (112,690) | (52,013,186) | (52,125,876) | ||||
Ending balance at Dec. 31, 2019 | $ 201,500 | $ 97,815,149 | $ 5,745,034 | $ 23,091,099 | $ (112,690) | $ (78,518,005) | $ 48,222,087 |
Ending balance (shares) at Dec. 31, 2019 | 72 | 7,905,727 | 467,451 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | ||
Net loss | $ (52,013,186) | $ (22,710,624) |
Add (deduct) items not affecting cash | ||
Depreciation and amortization | 3,146,680 | 183,194 |
Impairment of property, plant and equipment and right-of-use asset | 243,468 | |
Listing expense | 7,991,791 | |
Interest expense | 206,454 | |
Share-based payments | 16,061,319 | 6,440,406 |
Change in fair value of other investments | 11,669,157 | (17,564,529) |
Change in fair value of derivative liability | 3,568,305 | |
Change in fair value adjustments on inventory sold | 22,249 | |
Change in fair value of biological assets | 682,739 | |
Loss on settlement of financial liability | 24,810 | |
Allowance for impairment of Auxly funds | 7,499,977 | |
Changes in non-cash working capital balances | ||
Trade and other receivables | (1,079,067) | (664,610) |
Prepaid expenses and deposits | 39,892 | (99,264) |
Inventories | (942,939) | |
Biological assets | (682,739) | |
Trade and other payables | 825,120 | 433,754 |
Cash used in operating activities | (18,227,738) | (18,489,905) |
Investing activities | ||
Cash acquired from acquisition Prismic Pharmaceuticals Inc. | 2,329 | |
Reverse Takeover Transaction | 2,041,501 | |
Proceeds from sale of investments | 614,520 | |
Purchase of other investments | (7,999,991) | |
Purchase of property, plant and equipment | (534,118) | (4,032,832) |
Additions to intangible assets | (389,640) | |
Cash used in investing activities | (306,909) | (9,991,322) |
Financing activities | ||
Repayment of lease obligation | (56,207) | |
Proceeds from issuance of shares | 4,593,777 | 44,987,422 |
Share issue costs | (32,705) | (3,768,381) |
Proceeds from exercise of share options | 732,598 | 2,857,050 |
Proceeds from warrants exercised | 94,991 | 800,078 |
Cash provided by financing activities | 5,332,454 | 44,876,169 |
Net (decrease) increase in cash during the year | (13,202,193) | 16,394,942 |
Cash, beginning of year | 21,134,930 | 4,739,988 |
Cash, end of year | $ 7,932,737 | $ 21,134,930 |
Nature of business
Nature of business | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Nature of business [abstract] | |
Nature of business | 1. Nature of business FSD Pharma Inc. ("FSD" or the "Company"), through their wholly owned subsidiary, FV Pharma Inc. ("FV Pharma"), is a licensed producer of cannabis in Canada under the Cannabis Act (Canada) (together with the regulations promulgated thereunder (the "Cannabis Regulations"), the "Cannabis Act") and associated Cannabis Regulations. FV Pharma is focused on producing and extracting high-quality, hydroponic, pharmaceutical-grade cannabis leaf. The Company, through the their wholly owned subsidiary Prismic Pharmaceuticals Inc. ("Prismic"), is focused on bioscience, including research and development ("R&D") and clinical development of synthetic cannabinoid based treatments of certain disease conditions with an aim to improve patient outcomes. The Company's goal is for these compounds to be approved by the FDA and other international regulatory agencies as prescription medications. The Company was incorporated under the provisions of the Business Corporations Act (Ontario) (the "OBCA") on November 1, 1998, pursuant to the amalgamation of Olympic ROM World Inc., 1305206 Ontario Corporation, 1305207 Ontario Inc., Century Financial Capital Group Inc. and Dunberry Graphic Associates Ltd. On May 24, 2018, pursuant to the Articles of Amendment, the Company changed its name to "FSD Pharma Inc.". The Company's registered office is located at 1 Rossland Road West, Suite 202, Ajax, Ontario, L1Z 1Z2. On October 16, 2019, the Company completed a reverse share split of 201 to 1 Class B Shares. All share and per share amounts for all periods presented in these financial statements have been adjusted retrospectively to reflect the reverse share split. Going concern uncertainty The consolidated financial statements of the Company for the years ended December 31, 2019 and 2018 (the "financial statements") have been prepared on the basis of accounting principles applicable to a going concern, which assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of operations. These financial statements do not include any adjustments to the amounts and classification of assets and liabilities that would be necessary should the Company be unable to continue as a going concern. Such adjustments could be material. The Company is in the preliminary stages of its planned operations and has not yet determined whether its processes and business plans are economically viable. The continued operations of the Company and the recoverability of amounts shown for property and equipment and intangible assets are dependent upon the ability of the Company to obtain sufficient financing to continue its cultivation and production processes and complete the pharmaceutical research and development program centered on the lead asset, micro-palmitoylethanolamide ("micro-PEA"). As at December 31, 2019, the Company has an accumulated deficit of $78.5 million, a net loss of $52 million and a working capital surplus of $2.3 million. Whether, and when, the Company can attain profitability and positive cash flows from operations is subject to material uncertainty. The application of the going concern assumption is dependent upon the Company's ability to generate future profitable operations and obtain necessary financing to do so. The Company will need to raise additional capital in order to fund its planned operations and meet its obligations. While the Company has been successful in obtaining financing to date and believes it will be able to obtain sufficient funds in the future and ultimately achieve profitability and positive cash flows from operations, there can be no assurance that the Company will achieve profitability and be able to do so on terms favourable for the Company. Subsidiaries These financial statements are comprised of the financial results of the Company and its subsidiaries, which are the entities over which FSD has control. An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and can affect those returns through its power over the investee. The Company has the following subsidiaries Ownership Ownership percentage percentage Entity Name Country December 31, 2019 December 31, 2018 % % FV Pharma Inc. Canada 100 100 Prismic Pharmaceuticals Inc. USA 100 — |
Basis of presentation
Basis of presentation | 12 Months Ended |
Dec. 31, 2019 | |
Basis Of Presentation [Abstract] | |
Basis of presentation | 2. Basis of presentation [a] Statement of compliance These financial statements have been prepared by management in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The policies set out below have been consistently applied to all periods presented, unless otherwise noted. Certain comparative figures have been reclassified to conform to the current year's presentation. These financial statements were approved and authorized for issuance by the Board of Directors of the Company on March 3, 2020. [b] Basis of measurement These financial statements have been prepared on a historical cost basis. Historical costs are generally based upon the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of IFRS 2 Share-based Payment Impairment of Assets [c] Basis of presentation The accompanying financial statements include the accounts of FSD and its subsidiaries, FV Pharma and Prismic. The financial statements incorporate the assets and liabilities of the Company and its subsidiaries as at December 31, 2019 and 2018 and the results of these subsidiaries for the years then ended. Subsidiaries are all those entities over which the Company has control. The Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. All intra-entity assets and liabilities, revenue, expenses and cash flows relating to transactions between subsidiaries of the Company are eliminated in full on consolidation. [d] Functional currency and presentation currency These financial statements are presented in Canadian dollars, which is the functional currency of the Company. The functional currencies of the Company's wholly owned subsidiaries is as follows: FV Pharma Canadian Dollars Prismic United States Dollars [e] Use of estimates and judgments The preparation of these financial statements in conformity with IFRS requires management to make estimates, judgments and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. Estimates are based on management's best knowledge of current events and actions that the Company may undertake in the future. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The following are the critical judgments, apart from those involving estimations, that management has made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognized in the financial statements: [i] At each reporting period, management assesses the basis of preparation of the financial statements. These financial statements have been prepared on a going concern basis in accordance with IFRS. The going concern basis of presentation assumes that the Company will continue its operations for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of business. [ii] Depreciation of property, plant and equipment is dependent upon estimates of useful lives and residual values, which are determined through the exercise of judgment. The assessment of any impairment of these assets' is dependent upon estimates of recoverable amounts that take into account factors such as economic and market conditions and the useful lives of assets. [iii] In calculating the value of the biological assets and inventory, management is required to make a number of estimates, including estimating the stage of growth of the cannabis up to the point of harvest, harvesting costs, selling costs, expected selling and list prices and expected yields for the cannabis plants. In assessing the recoverability of final inventory values, management compares the inventory cost to estimated net realizable value. Further information on estimates used in determining the fair value of biological assets is contained in Note 8. [iv] The Company employs significant estimates to determine the estimated useful lives of intangible assets, considering the nature of the asset, contractual rights, expected use and review of asset useful lives. The Company reviews amortization methods and useful lives annually or when circumstances change and adjusts its amortization methods and assumptions prospectively. [v] Impairment testing requires management to make estimates related to future cash flow projections and market trends. Impairment of property, plant and equipment and intangible assets is influenced by judgment in defining a cash generating unit and determining the indicators of impairment and estimates used to measure impairment losses. [vi] Management measures the costs for share-based payments and warrants using market-based option valuation techniques. Assumptions are made and estimates are used in applying the valuation techniques. These include estimating the future volatility of the share price, expected dividend yield, expected term, expected risk-free interest rate and the rate of forfeiture. Such estimates and assumptions are inherently uncertain. Changes in these assumptions affect the fair value estimates of share-based payments and warrants. [vii] The financial information of private companies may not always be available, or such information may be insufficient or unreliable for valuation purposes. In determining the fair value of shares held in private company investments, management is required to make certain estimates and assumptions regarding the fair value as of the reporting date. Assumptions are made and estimates are used in applying the valuation techniques to determine fair value. These include the most recently available financial statements of the investee, price for most recently completed financing, as well as closely comparable public companies and general market and economic conditions. Such investments are classified as Level 3 within the fair value hierarchy. The value at which the Company could ultimately realize upon disposition of these investments may differ from their carrying value and such differences could be material. [viii] In the acquisition of Prismic on June 28, 2019 judgment was required to determine if the acquisition represented either a business combination or an asset purchase. Management concluded that Prismic did not represent a business as the assets acquired were not an integrated set of activities with inputs, processes and outputs. Since it was concluded that the acquisition represented the purchase of assets, there was no goodwill recognized on the transaction and acquisition costs were capitalized to the assets purchased rather than expensed. The fair values of the net assets acquired were determined using estimates and judgments. Refer to Note 5 for additional information on the Company's asset acquisition. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | |
Significant accounting policies | 3. Significant accounting policies [a] Cash consists of cash and cash held in trust accounts. There are no restrictions on cash held in trust. [b] Property, plant and equipment is measured at cost less accumulated depreciation and impairment losses, with the exception of land which is not depreciated. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of property, plant and equipment are recognized in consolidated statements of loss and comprehensive loss. Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the consolidated statements of loss and comprehensive loss. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount, and are recognized net within other income in the consolidated statements of loss and comprehensive loss. Depreciation is based on the estimated useful lives of the assets provided as follows: Computer equipment 30% declining balance Production equipment 20% declining balance Furniture and fixtures 20% declining balance Facility and related 20 years under straight-line Land Not amortized An item of property, plant and equipment and any significant part initially recognized are derecognized upon disposal or when no future economic benefits are expected from their use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated statements of loss and comprehensive loss when the asset is derecognized. The assets' residual values, useful lives and methods of depreciation and the depreciation charge are adjusted prospectively, if appropriate. [c] Finite-lived intangible assets are recorded at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized in profit or loss on a straight-line basis over the following terms: Intellectual Property 5 years [d] The Company's accounting policy for revenue recognition under IFRS 15, Revenue from Contracts with Customers ("IFRS 15") is to follow a five step model to determine the amount and timing of revenue to be recognized i) identify the contract with a customer; ii) identify the performance obligations in the contract; iii) determine the transaction price; iv) allocate the transaction price to the performance obligations in the contract; and v) recognize revenue when (or as) the Company satisfies a performance obligation. Revenue from the sale of cannabis is recognized when the Company transfers control of the good to the customer. This is generally considered to have occurred when products have been delivered to the location specified in the sales contract and accepted by the customer. The Company recognizes revenue in an amount that reflects the consideration the Company expects to receive taking into account any variation that may result from rights of return. The Company is required to remit excise tax to the Canada Revenue Agency on the sale of medical cannabis in Canada. The Company becomes liable for these excise duties when cannabis products are delivered to the customer. In accordance with IFRS 15, revenue presented on the Consolidated Statements of Loss and Comprehensive Loss, represents revenue from the sale of goods less applicable excise tax. Areas of judgment include identifying the customer per the definition within IFRS 15 and determining whether control has passed to the customer. [e] Foreign currency transactions are translated into Canadian dollars at exchange rates in effect on the date of the transactions. Monetary assets and liabilities denominated in foreign currencies at the statement of financial position date are translated to Canadian dollars at the foreign exchange rate applicable at that date. Realized and unrealized exchange gains and losses are recognized through profit or loss. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. The assets and liabilities of foreign operations with functional currencies other than Canadian dollars, are translated into Canadian dollars at year-end exchange rates. Income and expenses, and cash flows of such foreign operations are translated into Canadian dollars using average exchange rates for the period. Exchange differences resulting from translating foreign operations are recognized in other comprehensive loss and accumulated in equity. [f] Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. • On initial recognition, a financial asset is classified as measured at amortized cost, fair value through other comprehensive income (''FVOCI''), or fair value through profit and loss (''FVTPL''). The classification of financial assets is based on the business model in which a financial asset is managed and its contractual cash flow characteristics. A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL: It is held within a business model whose objective is to hold assets to collect contractual cash flows; and Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A financial asset (unless it is a trade receivable without a significant financing component that is initially measured at the transaction price) is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition. The following accounting policies apply to the subsequent measurement of financial assets. Financial assets at FVTPL Subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss. Financial assets at amortized cost Subsequently measured at amortized cost using the effective interest method, less any impairment losses. Interest income, foreign exchange gains and losses and impairment losses are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss. • The Company initially recognizes financial liabilities at fair value on the date at which the Company becomes a party to the contractual provisions of the instrument. The Company classifies its financial liabilities as either financial liabilities at FVTPL or amortized cost. Subsequent to initial recognition, other liabilities are measured at amortized cost using the effective interest method. Financial liabilities at FVTPL are stated at fair value with changes being recognized in profit or loss. The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expire. • • Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. • An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a group entity are recognized at the proceeds received, net of direct issue costs. Repurchase of the Company's own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company's own equity instruments. • The Company classifies its financial assets and liabilities depending on the purpose for which the financial instruments were acquired, their characteristics and management intent as outlined below: Classification Cash Amortized cost Trade and other receivables Amortized cost Other investments Fair value through profit or loss Trade and other payables Amortized cost Derivative liability Fair value through profit or loss Notes payable Amortized cost • An expected credit loss ("ECL") model applies to financial assets measured at amortized cost. The Company's financial assets measured at amortized cost and subject to the ECL model consist primarily of trade and other receivables. The Company applies the simplified approach to impairment for trade and other receivables by recognizing a loss allowance based on lifetime expected losses at each reporting date taking into considerations historical credit loss experience and financial factors specific to the debtors and general economic conditions. The Company has assessed the impairment of its trade and other receivables using the expected credit loss model, and no material difference was noted. [g] The Company's biological assets consist of cannabis plants. The Company capitalizes the direct and indirect costs incurred related to the biological transformation of the biological assets between the point of initial recognition and the point of harvest. The Company then measures the biological assets at fair value less cost to sell up to the point of harvest, which becomes the basis for the cost of inventory after harvest. This is determined using a model that estimates the expected harvest yield in grams for plants currently being cultivated, and then adjusts that amount by the expected selling price less costs to sell per gram. The net unrealized gains or losses arising from changes in fair value less cost to sell during the year are included in the results of operations of the related period. [h] Inventory of harvested work-in-process and finished goods are valued at the lower of cost and net realizable value. Inventory of harvested cannabis is transferred from biological assets at their fair value at harvest, which becomes the initial deemed cost. Any subsequent post-harvest costs 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 costs necessary to make the sale. Inventory for supplies and consumables are valued at the lower of cost and net realizable value, with cost determined using the average cost basis. [i] Long-lived assets, including property, plant and equipment and intangible assets are tested for impairment when there are indicators of impairment at each reporting date or whenever events or changes in circumstances indicate that the carrying amount of an asset exceeds its recoverable amount. Intangible assets with an indefinite useful life are tested for impairment at least annually in the fourth quarter and whenever there is an indication that the asset may be impaired. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the cash-generating unit, or "CGU"). The recoverable amount of an asset or a CGU is the higher of its fair value, less costs to sell, and its value in use. If the carrying amount of an asset exceeds its recoverable amount, an impairment charge is recognized immediately in net loss equal to the amount by which the carrying amount exceeds the recoverable amount. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the lesser of the revised estimate of recoverable amount, and the carrying amount that would have been recorded had no impairment loss been recognized previously. [j] Income tax expense comprises of current and deferred tax. Current tax and deferred tax are recognized in net profit or loss except to the extent that it relates to a business combination or items recognized directly in equity or in other comprehensive loss. Current income taxes are recognized for the estimated income taxes payable or receivable on taxable income or loss for the current year and any adjustment to income taxes payable in respect of previous years. Current income taxes are determined using tax rates and tax laws that have been enacted or substantively enacted by the year-end date. Deferred tax assets and liabilities are recognized where the carrying amount of an asset or liability differs from its tax base, except for taxable temporary differences arising on the initial recognition of goodwill and temporary differences arising on the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction affects neither accounting nor taxable profit or loss. Recognition of deferred tax assets for unused tax losses, tax credits and deductible temporary differences is restricted to those instances where it is probable that future taxable profit will be available against which the deferred tax asset can be utilized. At the end of each reporting period, the Company reassesses unrecognized deferred tax assets. The Company recognizes a previously unrecognized deferred tax asset to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. [k] Stock options and warrants awarded to non-employees are accounted for using the fair value of the instrument awarded or service provided, whichever is considered more reliable. Stock options and warrants awarded to employees are accounted for using the fair value method. The fair value of such stock options and warrants granted is recognized as an expense on a proportionate basis consistent with the vesting features of each tranche of the grant. The fair value is calculated using the Black-Scholes option pricing model with assumptions applicable at the date of grant. [l] Net loss per share is calculated based on the loss for the financial year and the weighted average number of common shares outstanding during the year. Diluted net loss per share is calculated using the loss for the financial year adjusted for the effect of any dilutive instruments and the weighted average diluted number of shares [ignoring any potential issue of common shares that would be anti-dilutive] during the year. New standards, amendments and interpretations adopted by the Company IFRS 16 - Leases ["IFRS 16"] The Company has adopted IFRS 16 with an initial adoption date of January 1, 2019. The Company utilized the modified retrospective method to adopt the new standard and therefore, the comparative information has not been restated and continues to be reported under IAS 17, Leases and related interpretations. IFRS 16 specifies how leases will be recognized, measured, presented and disclosed and it provides a single lessee model requiring lessees to recognize right-of-use assets and lease liabilities for all major leases. The Company's accounting policy under IFRS 16 is as follows. At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of identified asset for a period of time in exchange for consideration. The Company recognized a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of the costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use assets are depreciated to the earlier of the end of useful life of the right-of-use asset or the lease term using the straight-line method as this most closely reflects the expected pattern of the consumption of the future economic benefits. The lease term includes periods covered by an option to extend if the Company is reasonably certain to exercise that option. In addition, the right-of-use asset can be periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, and the Company's incremental borrowing rate. The Company used an incremental borrowing rate to measure the lease liabilities in the opening balance sheet at January 1, 2019 of 7.73%. The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from the change in an index or rate, if there is a change in the Company's estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, unless it has been reduced to zero. The Company has elected to apply the practical expedient not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less or to leases of low value assets when applicable. The lease payments associated with those leases is recognized as an expense on a straight-line basis over the lease term. The Company has also elected to apply the practical expedient to grandfather the assessment of which transactions are leases on the date of initial application, as previously assessed under IAS 17 and IFRIC 4 Determining Whether an Arrangement Contains a Lease. The Company applied the definition of a lease under IFRS 16 to contracts entered into or changed on or after January 1, 2019. On initial application, the Company has elected to record right-of-use assets at the amount of the corresponding lease liability. Right-of-use assets and lease obligations of $243,818 were recorded as at January 1, 2019. When measuring lease liabilities, the Company discounted lease payments using its incremental borrowing rate at January 1, 2019. The following table reconciles the Company's operating lease obligations at December 31, 2018, as previously disclosed in the Company's audited financial statements for the year ended December 31, 2018, to the lease obligations recognized on initial application of IFRS 16 at January 1, 2019: $ Aggregate lease commitments as disclosed at December 31, 2018 315,528 Less: Adjustment to lease commitments (24,528 ) Less: Impact of present value (47,182 ) Opening IFRS 16 lease obligation as at January 1, 2019 243,818 The Company did not have any leases subject to the low-value or short-term lease recognition exemptions upon adoption of IFRS 16 and as at December 31, 2019. |
Reverse Takeover Transaction
Reverse Takeover Transaction | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Reverse Takeover Transaction [Abstract] | |
Reverse Takeover Transaction | 4. Reverse Takeover Transaction Century Financial Capital Group Inc. ("Century") and FV Pharma executed a definitive business combination agreement on March 9, 2018 (the "Definitive Agreement"), whereby FV Pharma would be combined with Century to continue the business of FV Pharma. Under the terms of the Definitive Agreement, the Transaction was completed by way of a "three-cornered amalgamation" pursuant to the provisions of the Business Corporations Act (Ontario), whereby 2620756 Ontario Inc., a wholly-owned subsidiary of Century, amalgamated with FV Pharma (the "Amalgamation"), and the amalgamated entity is now a wholly-owned subsidiary of the Company (the "Transaction"). Pursuant to the terms of the Definitive Agreement and in connection with the Amalgamation: • • • • The Transaction has been accounted for as a "reverse takeover" as the issuance of shares to the former shareholders of FV Pharma resulted in the former shareholders of FV Pharma holding a majority of the issued and outstanding shares of the Company. Under this method of accounting, FV Pharma (the legal subsidiary) is deemed to be the acquirer and Century (the legal parent) is deemed to be the acquired company. |
Acquisition of Prismic Pharmace
Acquisition of Prismic Pharmaceutical | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about business combination [abstract] | |
Acquisition of Prismic Pharmaceutical | 5 . Acquisition of Prismic Pharmaceutical On June 28, 2019, the Company closed the acquisition of Prismic by acquiring all of the issued and outstanding Prismic Shares from the holders thereof. Prismic is a U.S.-based specialty research and development pharmaceutical company that is developing non-addictive prescription drugs for the treatment of pain and inflammation. Prismic's goal is to address the opioid crisis based on formulations utilizing micro-PEA's complimentary effect on certain drugs used to impact the body's endocannabinoid system. It was determined that the acquisition of Prismic did not qualify as a business combination in accordance with IFRS 3 Business Combinations The total consideration for the purchase of Prismic was $20,887,209. $16,431,818 $2,567,305 $1,888,086 of warrants. Share Options Warrants Grant date share price $32.16 $32.16 Exercise Price $2.61 - $17.89 $2.61 - $26.73 Expected dividend yield — — Risk free interest rate 1.39% - 1.66% 1.41% - 1.52% Expected life (years) 0.98—16.21 1.39—6.55 Annualized volatility 100% 100% The allocation of the total purchase consideration to the identifiable assets acquired and liabilities assumed as at the date of acquisition was as follows: Fair value recongized on acquisition $ Cash 2,329 Prepaids 26,174 Intellectual Property 24,648,915 Trade and other payables (1,867,250 ) Short-term notes (195,475 ) Notes payable (1,727,484 ) 20,887,209 |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other receivables [abstract] | |
Trade and other receivables | 6. Trade and other receivables The Company's trade and other receivables include the following: December 31, December 31, 2019 2018 $ $ Sales tax recoverable 2,033,535 982,663 Rent receivable 12,990 8,325 Other 23,530 — 2,070,055 990,988 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2019 | |
Classes of current inventories [abstract] | |
Inventories | 7. Inventory Inventory as at December 31, 2019 is as follows: Biological asset fair value Capitalized cost adjustment Impairment Carrying value $ $ $ $ Harvested cannabis Work in process 1,576,556 (431,627 ) (605,598 ) 539,331 Finished good 82,463 15,707 (76,979 ) 21,191 1,659,019 (415,920 ) (682,577 ) 560,522 Hemp products Raw materials 100,000 — — 100,000 100,000 — — 100,000 Other inventory Supplies 282,417 282,417 282,417 — — 282,417 2,041,436 (415,920 ) (682,577 ) 942,939 Costs of sales primarily relate to production related expenditures not capitalized due to start-up costs, underutilization and impairment charges. Prior to the receipt of the Company's Health Canada cultivation license on October 13, 2017, the Company did not incur production related expenditures. During the year ended December 31, 2019 the Company recognized in costs of revenue $1,315,941 (2018 – nil) related to inventory impairment charges. There was no inventory as at December 31, 2018. |
Biological assets
Biological assets | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about biological assets [abstract] | |
Biological assets | 8. Biological assets Biological assets consist of cannabis plants. The changes in the carrying value of biological assets are as follows: $ Balance, December 31, 2018 — Capitalized costs 1,297,734 Change in fair value less costs to sell due to biological transformation (682,739 ) Transferred to inventory upon harvest (614,995 ) Balance, December 31, 2019 — The Company measures its biological assets at their fair value less costs to sell. This is determined using a model that estimates the expected harvest yield in grams for plants currently being cultivated, and then adjusts that amount by the expected selling price less costs to complete and sell per gram. The fair value measurements for biological assets have been categorized as Level 3 fair values based on the inputs to the valuation technique used. The Company's method of accounting for biological assets attributes value accretion on a straight-line basis throughout the life of the biological asset from initial cloning to the point of harvest. The following table identifies each significant unobservable input used to estimate the fair value of biological assets: Assumptions: As at December 31, 2019 Input i Expected yields for cannabis plants (average grams per plant) 13 grams dry flower ii Weighted average number of growing weeks completed as a percentage of total growing weeks as at period end 73% iii Estimated selling price per gram $1.00 for flower $0.50 for trim iv After harvest cost to complete and sell per gram $1.91 for dry flower $1.25 for dry trim As at December 31, 2019 the fair value less costs to complete and sell of biological assets was nil. A change of plus or minus 10% of any of the above assumptions would not result in any change in the balance recognized of nil as at December 31, 2019. The Company estimates the harvest yields for cannabis at various stages of growth. As of December 31, 2019, it is expected that the Company's cannabis plants will yield approximately 19,532 grams of dry flower and 25,002 grams of dry trim when harvested. It was estimated that these plants as of December 31, 2019 had completed 73% of the expected growth cycle, which is estimated at 12 weeks. These estimates are subject to volatility in market prices and a number of factors, which could significantly affect the fair value of biological assets in future periods. The Company's estimates are, by their nature, subject to change, and differences from the anticipated yield and the other assumptions will be reflected in the gain or loss on biological assets in future periods. The fair value adjustments on biological assets are presented separately on the statements of loss and comprehensive loss. Biological assets as at December 31, 2018 were determined to have a fair value of nil. |
Other investments
Other investments | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Other Investments [Abstract] | |
Other investments | 9. Other investments The following table outlines changes in other investments. Balance at Change in fair Balance at December 31, Proceeds value through December 31, Entity Instrument Note 2018 Additions from sale profit or loss 2019 $ $ $ $ $ Pharmadrug Inc. Shares (i) — 3,000,000 — (2,660,940 ) 339,060 Cannara Biotech Inc. Shares (ii) 11,215,395 — — (2,146,357 ) 9,069,038 Clover Cannastrip Shares (iii) 1,500,000 — — (1,500,000 ) — High Tide Shares (iv) 1,798,040 — 614,520 (1,183,520 ) — High Tide Warrants (iv) 251,115 — — (251,115 ) — HUGE Shops Shares (v) 1,300,000 — — (539,132 ) 760,868 SciCann Therapeutics Shares (vi) 1,999,991 — — (1,287,743 ) 712,248 Solarvest BioEnergy Inc. Shares (vii) — 690,000 — (255,000 ) 435,000 Solarvest BioEnergy Inc. Warrants (vii) — 385,784 — (269,134 ) 116,650 Solarvest BioEnergy Inc. Convertible debenture (vii) — 1,924,216 — (1,576,216 ) 348,000 18,064,541 6,000,000 614,520 (11,669,157 ) 11,780,864 (i) On April 16, 2019, Pursuant to the share exchange agreement, FSD acquired 13,562,386 common shares at $0.2212 per share in the capital of Aura in exchange for the issuance of 65,577 Class B shares of the Company at $45.75 for a total value of $3,000,000. The FSD shares issued to Aura were subject to a purchase price adjustment, such that FSD would be required to issue additional shares to Aura should the weighted average trading price of FSD's shares fall below the issue price. As the number of additional shares to be issued under the agreement were dependent on the FSD share price, it was determined that this created a derivative liability. As a result of the decline in the Company's share price, on September 20, 2019, 61,892 additional Class B shares of the Company were issued to Aura as part of the adjustment of purchase price and a corresponding loss on change in fair value of derivative liability of $1,422,036 was recorded in the statements of loss and comprehensive loss. The Company's investment in Aura has been classified as level 1 (ii) The Company's investment in 85,003,750 Class B shares of Cannara are subject to an escrow arrangement with timed releases of a predetermined quantity of shares at set intervals over a three-year period. Consequently, unrestricted shares that are not subject to escrow are valued at market price and shares that are held in escrow are subject to a discount rate. The valuation at December 31, 2019 was based on the December 31, 2019 quoted market price of $0.125 per share, subject to an aggregate discount for the escrow conditions determined to be 19.53% ($1,556,431). The 21,250,935 unrestricted Class B shares have been classified as level 1 within the fair value hierarchy - quoted market price. The remaining 63,752,815 Class B shares held in escrow has been classified as level 2 within the fair value hierarchy - valuation technique with observable inputs. The Company was a founder of Cannara and previously had common directors during 2018. Subsequent to December 31, 2019, the Company sold all 85,003,750 Class B shares for gross proceeds of $7,743,492 (refer to Note 25). (iii) On September 6, 2018, the Company subscribed for $1,500,000 (iv) The investment included 4,551,999 shares and 2,000,000 warrants. for total cash proceeds of $614,520. (v) The investment includes 17,333,333 shares based on the December 2018 subscription price of $0.075 per share. The equity investment is measured at fair value through profit or loss. Huge Shops is not a publicly traded company therefore, the fair value was classified as level 3 within the fair value hierarchy. As at December 31, 2019, the Company determined the best information to assess the fair value of the investment was based on movement of comparable public companies share prices and cannabis sector index resulting in decline in the fair value of investment of 41.5% from December 31, 2018. Comparable companies were determined in looking at product offering, relative size of operations, geographical market and other factors. A change in this assumption of plus or minus 10% would result in a corresponding change in fair value of the investment of approximately $54,000. (vi) The investment includes 117,648 shares based on the subscription price in May and October 2018 of $17 per share. The equity investment is measured at fair value through profit or loss. SciCann Therapeutics Inc. is not a publicly traded company therefore, the fair value was classified as level 3 within the fair value hierarchy. As at December 31, 2019, the Company determined the best information to assess the fair value of the investment was based on movement of comparable public companies share prices and cannabis sector index resulting in decline in the fair value of investment of 64.4% from December 31, 2018. Comparable companies were determined in looking at product offering, relative size of operations, geographical market and other factors. A change in this assumption of plus or minus 10% would result in a corresponding change in fair value of the investment of approximately $129,000. (vii) Solarvest BioEnergy Inc. ("Solarvest") On May 7, 2019, the Company acquired 3,000,000 common shares, 3,000,000 warrants and a convertible debenture at a principal amount of $2,400,000 As at December 31, 2019, the fair value of the shares was determined based on the quoted market price of the shares at $0.145 per share. The fair value of the associated warrants is based on the Black-Scholes model with the following assumptions: exercise price $0.25, risk free rate 1.71%, expected volatility 94%, expected life 1.35 years and expected dividend yield of 0%. Fair value of the convertible debenture is calculated as: i) principle amount of debt: $2,400,000 multiplied by ii) ratio of $1 per share multiplied by iii) SVS share price as at December 31, 2019 of $0.145. As at December 31, 2019, the fair value of the derivative liability was $2,646,269 resulting in recognition of loss on change in fair value of derivative liability of $2,146,269. The fair value was determined based on the additional common shares of the Company required to be issued to Solarvest to meet the minimum liquidation value of $3,000,000. Subsequent to December 31, 2019, the Company issued 225,371 shares to Solarvest to settle this derivative liability (refer to Note 25). |
Right-of-use asset
Right-of-use asset | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |
Right-of-use asset | 10. Right-of-use asset The right-of-use asset as at December 31, 2019 is as follows: $ Balance – January 1, 2019 243,818 Depreciation (48,764 ) Impairment (67,644 ) Balance – December 31, 2019 127,410 The right-of-use asset relates to an office lease. As of December 31, 2019 the Company did not occupy the leased premise and was in the process of subleasing the space. The right-of-use asset has been impaired as of December 31, 2019 and was written down to the present value of the expected future lease payments to be received from subleasing the premise |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | 11. Property, plant and equipment Property, plant and equipment as at December 31, 2019 is as follows: Furniture and Computer Facility and Production fixtures equipment related equipment Land Total $ $ $ $ $ $ Cost Balance, December 31, 2017 123,218 — 7,068,820 — 1,100,000 8,292,038 Additions 209,795 220,150 3,350,156 252,731 — 4,032,832 Balance, December 31, 2018 333,013 220,150 10,418,976 252,731 1,100,000 12,324,870 Additions 126,425 73,183 142,824 191,686 — 534,118 Impairment (86,730 ) — (101,683 ) (26,643 ) — (215,056 ) Balance, December 31, 2019 372,708 293,333 10,460,117 417,774 1,100,000 12,643,932 Accumulated depreciation Balance, December 31, 2017 — — — — — — Depreciation 76,179 66,045 — 40,970 — 183,194 Balance, December 31, 2018 76,179 66,045 — 40,970 — 183,194 Depreciation 100,652 68,186 439,903 87,084 — 695,825 Impairment (27,754 ) — (5,084 ) (6,394 ) — (39,232 ) Balance, December 31, 2019 149,077 134,231 434,819 121,660 — 839,787 Carrying value Balance, December 31, 2018 256,834 154,105 10,418,976 211,761 1,100,000 12,141,676 Balance, December 31, 2019 223,631 159,102 10,025,298 296,114 1,100,000 11,804,145 During the year ended December 31, 2019 the Company capitalized $131,955 (2018 - nil) of depreciation to the production of biological assets and inventory. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Changes in intangible assets other than goodwill [abstract] | |
Intangible assets | 12. Intangible asset Intangible asset as at December 31, 2019 is as follows: $ Cost Balance, December 31, 2018 — Acquisition of Prismic Pharmaceuticals Inc. 24,648,915 Additions 389,640 Effects of foreign exchange (186,463 ) Balance, December 31, 2019 24,852,092 Accumulated amortization Balance, December 31, 2018 — Amortization 2,534,047 Effects of foreign exchange (40,887 ) Balance, December 31, 2019 2,493,160 Carrying value Balance, December 31, 2018 — Balance, December 31, 2019 22,358,932 The Company acquired intellectual property as part of the acquisition of Prismic on June 28, 2019. Refer to Note 5 for additional details. The life of the intellectual property has been determined to be 5 years. Amortization of the intellectual property commenced on the date of acquisition. |
Lease obligations
Lease obligations | 12 Months Ended |
Dec. 31, 2019 | |
Lease liabilities [abstract] | |
Lease obligations | 13. Lease obligations The lease obligations as at December 31, 2019 are as follows: $ Balance – January 1, 2019 243,818 Add: Interest Expense 15,258 Less: Lease Payments (56,207 ) Balance – December 31, 2019 202,869 Current 56,207 Non-current 146,662 Balance – December 31, 2019 202,869 Lease obligations are related to the Company's office lease. As of December 31, 2019, the Company did not occupy the leased premise and was in the process of subleasing the space. Subsequent to December 31, 2019 the Company subleased the premise. The following table sets out a maturity analysis of the lease payments payable, showing the undiscounted lease payments to be paid on an annual basis, reconciled to the lease obligation. $ Less than one year 56,206 One to two years 59,642 Two to three years 59,954 Three to four years 59,954 Therafter — Total undiscounted lease payments payable 235,756 Less: impact of present value (32,887 ) Balance as at December 31, 2019 202,869 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [abstract] | |
Notes Payable | 14. Notes Payable Notes payable consists of the following: $ Short-term notes 193,996 Notes payable 1,714,416 Balance as at December 31, 2019 1,908,412 Short-term notes The short-term notes represent notes outstanding that the Company assumed on acquisition of Prismic. The notes have matured, are due on demand and accrue interest a rate of 10% per annum. The notes are held by former Directors and Shareholders of Prismic. Notes payable The notes payable represent notes outstanding that the Company assumed on acquisition of Prismic. The notes have matured and are due on demand. The notes accrue interest a rate of 20% per annum. The notes are held by former Directors and Shareholders of Prismic. |
Share capital
Share capital | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of reserves within equity [abstract] | |
Share capital | 15. Share capital [a] Authorized The Company is authorized to issue an unlimited number of Class A multiple voting shares ("Class A shares") and an unlimited number of Class B subordinate voting shares ("Class B shares"), all without par value. All shares are ranked equally with regards to the Company's residual assets. The holders of Class A shares are entitled to 276,660 votes per class A share held. [b] Issued and outstanding Reconciliation of the Company's share capital is as follows: Class A shares Class B shares Warrants # $ # $ # $ Balance, December 31, 2017 72 201,500 3,794,846 12,794,963 354,996 2,116,900 Share issued — — 2,268,035 47,853,745 — — Share issuance costs — — — (6,634,405 ) — — Reverse acquisition — — 545,505 9,868,179 37,313 118,875 Warrant valuations — — — (2,366,670 ) 198,835 2,366,670 Share-based payments — — — — — 294,287 Share options exercised — — 190,463 5,145,825 — — Share options cancelled — — — — — — Warrants exercised — — 44,931 1,254,665 (44,932 ) (454,587 ) Balance, December 31, 2018 72 201,500 6,843,780 67,916,302 546,212 4,442,145 Balance, December 31, 2018 72 201,500 6,843,780 67,916,302 546,212 4,442,145 Shares issued [a] [b] [c] [d] [e] — — 408,651 11,539,417 — — Issued on acquisition of net assets of Prismic Pharmaceuticals, Inc. [f] — — 510,940 16,431,818 67,598 1,888,086 Share options exercised — — 130,189 1,782,438 — — Warrants exercised — — 12,167 145,174 (12,167 ) (50,183 ) Warrants expired — — — — (134,192 ) (535,014 ) Balance, December 31, 2019 72 201,500 7,905,727 97,815,149 467,451 5,745,034 [a] 13,562,386 common shares at $0.2212 per share 65,577 Class B shares of the Company at $45.75 for a total value of $3,000,000. On September 20, 2019, the Company issued an additional 61,892 [b] [c] [d] [e] the issuance of 228,670 Class B shares at a price of $20.10 per share for total gross proceeds of $4,593,777. Cash transactions costs related to the private placement were $32,705. A portion of the shares issued under the private placement were to related parties of the Company, including Directors and Officers of the Company (refer to Note 21). [f] The changes in the number of warrants outstanding during the years ended December 31, 2019 and 2018 were as follows: Number of warrants Weighted average exercise price # $ Outstanding as at December 31, 2017 354,996 5.80 Granted 236,148 16.57 Exercised (44,932 ) 17.79 Outstanding as at December 31, 2018 546,212 9.47 Granted 67,598 10.45 Exercised (12,167 ) 7.81 Expired (134,192 ) 7.64 Outstanding as at December 31, 2019 467,451 10.20 Measurement of fair values The fair value of warrants outstanding during the years ended December 31, 2019 and 2018 were estimated at the date of grant using the Black-Scholes option pricing model with the following inputs: 2019 2018 Grant date share price $32.16 $4.42 - $18.09 Exercise price $2.61 - $26.73 $4.42 - $26.13 Expected dividend yield — — Risk free interest rate 1.41% - 1.52% 1.70% - 2.17% Expected life 1.39 - 6.55 2 years Expected volatility 100% 100% The following table is a summary of the Company's warrants outstanding as at December 31, 2019: Warrants Outstanding Exercise price Number outstanding Expiry Date $ # November 30, 2020 2.61 16,787 September 15, 2022 4.42 199,005 August 1, 2021 5.43 4,476 September 11, 2023 5.43 22,382 January 5, 2020 6.03 37,313 July 24, 2023 13.07 3,357 May 20, 2023 16.08 7,311 May 24, 2022 18.09 163,535 May 4, 2025 26.73 3,730 May 10, 2025 26.73 1,865 May 17, 2025 26.73 3,730 May 31, 2025 26.73 1,865 January 16, 2026 26.73 1,722 January 20, 2026 26.73 373 10.20 467,451 Warrants Outstanding Exercise price Number outstanding Expiry Date $ # September 15, 2022 4.42 199,005 October 20, 2019 7.56 11,970 November 1, 2019 7.56 69,240 November 14, 2019 7.56 52,532 November 21, 2019 7.56 10,263 December 12, 2019 7.56 1,084 December 29, 2019 7.56 1,072 January 5, 2020 6.03 37,313 May 24, 2022 18.09 163,733 9.47 546,212 |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Share-based compensation | 16. Share-based compensation The Company has established a share option plan (the "Option Plan") for directors, officers, employees and consultants of the Company. The Company's Board of Directors determines, among other things, the eligibility of individuals to participate in the Option Plan, the term and vesting periods, and the exercise price of options granted to individuals under the Option Plan. Each share option converts into one common share of the Company on exercise. No amounts are paid or payable by the individual on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry. Share-based payment arrangements The changes in the number of share options during the years ended December 31, 2019 and 2018 were as follows: Number of options Weighted average exercise price # $ Outstanding as at December 31, 2017 206,219 4.44 Granted 593,781 65.80 Exercised (240,214 ) 11.31 Cancelled (74,627 ) 10.05 Outstanding as at December 31, 2018 485,159 74.53 Granted 1,363,322 20.68 Exercised (82,094 ) 10.02 Forfeited (12,438 ) 56.28 Cancelled (299,006 ) 115.80 Outstanding as at December 31, 2019 1,454,943 21.96 Exercisable as at December 31, 2019 1,200,242 21.24 Measurement of fair values The fair value of share options granted during the years ended December 31, 2019 and 2018 were estimated at the date of grant using the Black-Scholes option pricing model with the following inputs: 2019 2018 Grant date share price $6.45 — $75.38 $10.05 — $142.71 Exercise price $7.17 — $75.38 $10.05 — $148.74 Expected dividend yield — — Risk free interest rate 1.24% — 1.90% 1.97% — 2.41% Expected life 5 years 5 years Expected volatiity 100% 100% Expected volatility was estimated by using the historical volatility of other companies that the Company considers comparable that have trading and volatility history. The expected option life represents the period of time that options granted are expected to be outstanding. The risk-free interest rate is based on government bonds with a remaining term equal to the expected life of the options. The following table is a summary of the Company’s share options outstanding as at December 31, 2019: Options outstanding Options exercisable Weighted average remaining contractual Exercise price Number outstanding life [years] Exercise price Number exercisable $ # # $ # 2.61 35,065 3.49 2.61 35,065 4.42 99,502 2.71 4.42 99,502 5.43 16,264 3.49 5.43 16,264 10.65 3,730 3.49 10.65 3,730 13.07 10,855 3.49 13.07 10,855 13.47 1,418 3.49 13.47 1,418 16.08 18,409 3.49 16.08 18,409 17.89 4,178 3.49 17.89 4,178 18.09 37,313 3.34 18.09 37,313 20.10 493,363 4.72 20.10 493,363 21.11 12,438 4.67 21.11 12,438 24.12 9,950 4.59 24.12 6,219 26.13 14,925 3.62 26.13 14,925 40.20 29,851 4.45 40.20 22,388 44.22 2,488 3.41 44.22 2,488 47.24 1,493 4.37 47.24 1,493 50.25 227,861 5.09 50.25 129,353 52.26 498 4.21 52.26 498 55.28 498 4.12 55.28 498 59.30 498 3.96 59.30 498 7.17 199,005 4.83 7.17 199,005 7.50 — — 7.50 — 75.38 498 4.04 75.38 498 7.63 203,750 5.34 7.63 58,750 86.43 1,244 3.88 86.43 1,244 88.44 14,925 3.87 88.44 14,925 120.60 9,950 3.71 120.60 9,950 142.71 4,974 3.74 142.71 4,975 21.96 1,454,943 4.59 21.24 1,200,242 The following table is a summary of the Company's share options outstanding as at December 31, 2018: Options outstanding Options exercisable Weighted average remaining contractual Exercise price Number outstanding life [years] Exercise price Number exercisable $ # # $ # 4.42 149,254 3.71 4.42 149,254 5.03 2,488 0.98 5.03 2,488 18.09 42,289 4.35 18.09 42,289 20.10 33,169 4.27 20.10 16,584 26.13 14,925 4.62 26.13 14,925 56.28 12,438 4.91 56.28 — 59.30 498 4.96 59.30 498 86.43 1,244 4.88 86.43 1,244 88.44 14,925 4.87 88.44 14,925 120.60 9,950 4.71 120.60 9,950 142.71 4,975 4.74 142.71 1,658 148.74 199,004 4.70 148.74 — 74.53 485,159 4.32 19.91 253,815 The Company recognized $16,061,319 of share-based compensation expenses during the year ended December 31, 2019 (2018 - $6,440,406), with a corresponding amount recognized in contributed surplus. Included within share-based compensation expense during the year ended December 31, 2019 is $1,730,794 (2018 - nil) for bonus expense to be paid subsequent to December 31, 2019 through the issuance of Class B common shares of the Company. |
Loss per share
Loss per share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
Loss per share | 17. Loss per share Net loss per common share represents net loss attributable to common shareholders divided by the weighted average number of common shares outstanding during the year. For all the periods presented, diluted loss per share equals basic loss per share due to the anti-dilutive effect of warrants and share options. The outstanding number and type of securities that could potentially dilute basic net loss per share in the future but would have decreased the loss per share (anti-dilutive) for year ended December 31 presented are as follows: 2019 2018 # # Warrants 467,451 546,212 Share Options 1,454,943 485,159 1,922,394 1,031,371 |
General and administrative
General and administrative | 12 Months Ended |
Dec. 31, 2019 | |
Selling, general and administrative expense [abstract] | |
General and administrative | 18. General and administrative Components of general and administrative expenses for the years ended December 31, 2019 and 2018 were as follows: 2019 2018 $ $ Professional fees 3,730,556 1,955,253 Stock promotion 2,902,453 2,803,588 Salaries, wages and benefits 2,267,308 1,740,720 Consulting fees 2,288,129 2,037,049 General office, travel and adminsitration expenditures 2,172,824 726,509 Repairs, maintenance and utilities 924,945 1,360,477 Shareholder and public company costs 440,746 124,973 Listing expense — 7,991,791 Foreign exchange loss 84,568 — 14,811,529 18,740,360 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income taxes paid (refund) [abstract] | |
Income taxes | 19. Income taxes The reconciliation of income tax expense for the years ended December 31, 2019 and 2018 consists of the following: 2019 2018 $ $ Loss before income taxes (52,013,186 ) (22,710,624 ) Statutory federal and provincial tax rate 26.50% 26.50% Income tax recovery at the statutory tax rate (13,783,494 ) (6,018,315 ) Permanent differences 7,797,290 2,706,000 Other adjustment 6,334,913 — Change in tax benefits not recognized (348,709 ) 3,312,315 — — Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax values. Deferred tax liabilities at December 31, 2019 and 2018 are comprised of the following: 2019 2018 Deferred tax liabilities $ $ Other investments (168,092 ) (1,334,000 ) Capital losses carried forward 168,092 1,334,000 Deferred tax liabilities not recognized — — 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 temporary differences: 2019 2018 $ $ Property, plant and equipment 1,054,843 — Other investments 1,287,743 — Share issuance costs 1,169,642 3,772,000 Non-capital losses carried forward - Canada 27,518,609 29,272,000 Net operating losses carried forward - US 274,454 — Capital losses carried forward 350,465 — Unrealized fair value on biological assets and inventory 1,098,497 — 32,754,253 33,044,000 The Company’s Canadian non-capital income tax losses expire as follows: $ 2038 12,492,296 2039 15,026,313 27,518,609 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Commitments And Contingent Liabilities [abstract] | |
Commitments and contingencies | 20. Commitments and contingencies Commitments Supply Agreement with Canntab Therapeutics Ltd. and World Class Extractions Inc. On February 12, 2019, the Company announced that it had entered into a three-way supply agreement with Canntab Therapeutics Ltd. ("Canntab"), World Class Extractions Inc. ("World Class") (collectively with the Company, the "Purchasers") and a Supplier to purchase up to 1,000 kg of the Supplier's 2018 organic hemp crop, for which the Company has already purchased a quantity with a value of $100,000, $1,000,000 As at December 31, 2019, no hemp has been received by the Company. The Company has provided a deposit of $166,667 to the Supplier as at year-end Pursuant to the Agreement, the Supplier granted the Purchasers the right and option to purchase up to $5,000,000 of the Supplier's hemp crop for a period of 5 years commencing in 2019 at a purchase price of $100 per kg per 1% of CBD extracted from the flower. Canntab is a Canadian cannabis oral dosage formulation company based in Markham, Ontario, engaged in the research and development of pharmaceutical-grade formulations of cannabinoids and trades on the Canadian Securities Exchange under the symbol PILL. World Class is understood to have developed an extraction process to produce quality, potent cannabis extracts using ultrasound to effectively produce extracts from cannabis and hemp and isolate essential compounds found in plant material. World Class trades on the Canadian Securities Exchange under the symbol PUMP. Certain Officers and Directors of the Company also serve as Directors of World Class. Epitech License Agreement Under the terms of the Company's License Agreement with Epitech Group SPA ("Epitech"), the Company has payments due to Epitech pending the achievement of specified milestones. Upon first notification by the Food and Drug Administration ("FDA") of approval of a New Drug Application, the non-refundable sum of USD $700,000 will be due and payable to Epitech. Within ten business days of the first notification of approval of a Supplemental New Drug Application by the FDA, the Company will pay the non-refundable sum of USD $1,000,000 to Epitech. For non-prescription drug rights, any one-off lump sum payments received by the Company as consideration for granting a sub-license to a Commercial Partner with respect to a Licensed Product, shall require the Company to pay to Epitech 25% of the lump sum payment received by the Company. For prescription drug rights the Company shall pay 5% of any one-off lump sum payments to Epitech as consideration for granting a sub-license to a Commercial Partner with respect to a Licensed Product. The Company will pay the amounts payable on a quarterly basis within 60 days of the end of each calendar quarter. The Company shall pay either a) 7% of Net Sales of the Licensed Product in a Product Regulatory Category other than prescription drugs place on the market by the Company; or b) 25% of Net Receipts received by the Company from Commercial Partners where Licensed Products in a Product Regulatory Category other than prescription drugs are placed on the market by such Commercial Partners; or c) 5% of Net Sales or Net Receipts of the Licensed Products in the Product Regulatory Category of prescription drugs. The Company will pay the amounts payable on a quarterly basis within 60 days of the end of each calendar quarter. Supply Agreement with Pharmadrug Production GMBH ("Pharmadrug") FV Pharma has a supply agreement with Pharmadrug whereby FV Pharma has committed to make the following quantities of cannabis available to Pharmadrug to purchase under the terms of the Supply Agreement: Year Commitment 2020 350 kilograms 2021 650 kilograms 2022 1,000 kilograms 2023 1,000 kilograms 2024 1,000 kilograms Heritage Building Restoration Commitment The Company has a commitment to restore the designated heritage building on the Company's premises. The estimated cost of restoration is $517,000. Contingencies Legal matters From time to time, the Company is named as a party to claims or involved in proceedings, including legal, regulatory and tax related, in the ordinary course of its business. While the outcome of these matters may not be estimable at the reporting date, the Company makes provisions, where possible, for the estimated outcome of such claims or proceedings. Should a loss result from the resolution of any claims or proceedings that differs from these estimates, the difference will be accounted for as a charge to profit or loss in that period. Environmental Management believes that there are no probable environmental related liabilities that will have a material adverse effect on the financial position or operating results of the Company. Claims from suppliers A dismissed contractor commenced a lien action combined with a breach of contract action in the Cobourg Superior Court of Justice in early 2019 claiming approximately $1,700,000 $188,309 $235,387 Former employee FSD hired an individual by way of employment agreement. The individual's employment was subsequently terminated in the probationary period due to non-performance/cause in February 2019. The individual retained legal counsel in or around February 15, 2019 demanding that he be provided (i) unpaid wages; (ii) unpaid holiday pay, (iii) payment for wrongful dismissal (one week) and (iv) breach of contract. A hearing is scheduled for March 13, 2020 in front of the employment tribunal. The Company is of the view that the outcome will be unfavourable to the Company. For the year ended December 31, 2019, the Company recorded a provision of $97,320 Class Action On February 22, 2019, a shareholder in FSD commenced a proposed class action proceeding against the Company by issuing a statement of claim in the Ontario Superior Court. Amongst other causes of action, the individual seeks leave to bring a claim pursuant to s.138 of the Ontario Securities Act, alleging the Company made statements containing misrepresentations related to the build-out of the Company's Cobourg facility. On October 16, 2019 dates for the leave motion were given - May 5-6, 2020. No discoveries have occurred nor has FSD been required to file a statement of defense. Management intends to contest this leave motion, and are in the process of preparing responding materials. The ultimate outcome of the matter cannot be reliably determined at this time and no provision has been recorded for this matter as at December 31, 2019. Auxly Cannabis Group Inc. On March 3, 2018, FSD entered into a Definitive Strategic Alliance and Streaming Agreement (the "Agreement") with Auxly Cannabis Group Inc. ("Auxly"). On February 6, 2019, the Company delivered to Auxly a Notice of Default, thereby terminating the Agreement effective immediately. Subsequent to the issuance of the Notice of Default, Auxly sent a Notice of Default to the Company on February 6, 2019 in response. To date, neither party has taken further legal action against the counter party. To fund the development, Auxly purchased 37,313 Class B shares for the aggregate of $7,500,000 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |
Related party transactions | 21. Related party transactions Key management personnel are those persons having the authority and responsibility for planning, directing and controlling activities of the entity, directly or indirectly. Compensation paid or payable to key management and directors comprised the following: • • • • • • • • • . Directors fees for the year ended December 31, 2019 were $203,521 (2018 - $66,667). As of December 31, 2019, $98,521 of fees • • Key management personnel compensation during the years ended December 31 comprised of: 2019 2018 $ $ Salaries, benefits, bonuses and consulting fees 4,836,192 1,814,115 Share-based payments 12,476,385 3,215,401 Total 17,312,577 5,029,516 |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Capital Management [Abstract] | |
Capital Management | 22. The Company's capital management objectives are to maintain financial flexibility in order to complete development of its facilities and extraction processes and the pharmaceutical research and development program centered on the lead asset, micro-PEA. The Company defines capital as the aggregate of its capital stock and borrowings. As at December 31, 2019, the Company's Share Capital was $98,016,649 (2018 - $68,117,802). The Company manages its capital structure in accordance with changes in economic conditions. In order to maintain or adjust its capital structure, the Company may elect to issue or repay financial liabilities, issue shares, repurchase shares, pay dividends or undertake any other activities as deemed appropriate under the specific circumstances. The Company is not subject to any externally imposed capital requirements. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial Instruments and Risk Management | 23. Financial Instruments and Risk Management 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 deposits with banks and outstanding receivables. The Company trades only with recognized, creditworthy third parties. The Company does not currently have any material outstanding trade receivables with customers. The Company does not hold any collateral as security but mitigates this risk by dealing only with what management believes to be financially sound counterparties and, accordingly, does not anticipate significant loss for non-performance. Liquidity risk Liquidity risk is the risk the Company will not be able to meet its financial obligations as they come due. The Company's exposure to liquidity risk is dependent on the Company's ability to raise additional financing to meet its commitments and sustain operations. The Company mitigates liquidity risk by management of working capital, cash flows, the issuance of share capital and if desired, the issuance of debt. The Company's trade and other payables, derivative liability and notes payables are all due within twelve months from the date of these financial statements. If unanticipated events occur that impact the Company's ability to complete development of its production facilities and carrying the planned clinical trials, the Company may need to take additional measures to increase its liquidity and capital resources, including issuing debt or additional equity financing or strategically altering the business forecast and plan. In this case, there is no guarantee that the Company will obtain satisfactory financing terms or adequate financing. Failure to obtain adequate financing on satisfactory terms could have a material adverse effect on the Company's results of operations or financial condition. Market risk Market risk is the risk the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk. • Foreign currency risk arises on financial instruments that are denominated in a currency other than the functional currency in which they are measured. The Company's primary exposure with respect to foreign currencies is from US dollar denominated notes payable. A 1% change in the foreign exchange rates would not result in any significant impact to the financial statements. • Interest rate risk is the risk the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to interest rate risk as at December 31, 2019 as there are no material long-term borrowings outstanding. • Other price risk is the risk the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Company is not exposed to other price risk as at December 31, 2019. Fair values The carrying values of cash, trade and other receivables, trade and other payables and notes payable approximate fair values due to the short-term nature of these items or they are being carried at fair value or, for notes payable, interest payables are close to the current market rates. The risk of material change in fair value is not considered to be significant. The Company does not use derivative financial instruments to manage this risk. Financial instruments recorded at fair value on the consolidated statement of financial position are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company's valuation techniques. A level is assigned to each fair value measurement based on the lowest-level input significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows: • • • The fair value hierarchy requires the use of observable market inputs whenever such inputs exist. A financial instrument is classified to the lowest level of the hierarchy for which a significant input has been considered in measuring fair value. Private company investments measured at fair value are classified as Level 3 financial instruments. The valuation method and significant assumptions used to determine the fair value of private company investments have been disclosed in the Other Investments note. During the year, there were no transfers of amounts between levels. |
Segmented information
Segmented information | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of operating segments [abstract] | |
Segmented information | 24. Segmented information The Company reports segment information based on internal reports used by the chief operating decision maker ("CODM") to make operating and resource decisions and to assess performance. The CODM is the Chief Executive Officer of the Company. The CODM makes decisions and assesses performance of the Company on a consolidated basis such that the Company is a single reportable operating segment. For the years ended December 31, 2019 and 2018 all revenues generated by the Company were earned by their subsidiary, FV Pharma, who is domiciled in Canada. For the years ended December 31, 2019 and 2018 all property, plant and equipment were held by FV Pharma and the intangible asset is related to the Company's US domiciled subsidiary, Prismic. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Subsequent events | 25. Subsequent events On January 2, 2020, the Company issued 27,580 Class B Common Shares as On January 9, 2020, the Company commenced trading on the NASDAQ under the symbol "HUGE". On February 4, 2020, the Company issued 225,371 Class B Common Shares to Solarvest as settlement under the Share Exchange Agreement to settle derivative liability of $2,646,269. On February 5, 2020 the Company executed Share Purchase and Sale Agreements with a consortium of buyers to sell the Company's investment in Cannara, consisting of 85,003,750 Class B shares, for gross proceeds of $7,743,492. Subsequent to December 31, 2019 the Company is considering the continuing use or sale of the Cobourg facility. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | |
Cash | [a] Cash consists of cash and cash held in trust accounts. There are no restrictions on cash held in trust. |
Property, Plant and Equipment | [b] Property, plant and equipment is measured at cost less accumulated depreciation and impairment losses, with the exception of land which is not depreciated. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of property, plant and equipment are recognized in consolidated statements of loss and comprehensive loss. Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the consolidated statements of loss and comprehensive loss. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount, and are recognized net within other income in the consolidated statements of loss and comprehensive loss. Depreciation is based on the estimated useful lives of the assets provided as follows: Computer equipment 30% declining balance Production equipment 20% declining balance Furniture and fixtures 20% declining balance Facility and related 20 years under straight-line Land Not amortized An item of property, plant and equipment and any significant part initially recognized are derecognized upon disposal or when no future economic benefits are expected from their use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated statements of loss and comprehensive loss when the asset is derecognized. The assets' residual values, useful lives and methods of depreciation and the depreciation charge are adjusted prospectively, if appropriate. |
Finite-lived Intangible Assets | [c] Finite-lived intangible assets are recorded at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized in profit or loss on a straight-line basis over the following terms: Intellectual Property 5 years |
Revenue Recognition | [d] The Company's accounting policy for revenue recognition under IFRS 15, Revenue from Contracts with Customers ("IFRS 15") is to follow a five step model to determine the amount and timing of revenue to be recognized i) identify the contract with a customer; ii) identify the performance obligations in the contract; iii) determine the transaction price; iv) allocate the transaction price to the performance obligations in the contract; and v) recognize revenue when (or as) the Company satisfies a performance obligation. Revenue from the sale of cannabis is recognized when the Company transfers control of the good to the customer. This is generally considered to have occurred when products have been delivered to the location specified in the sales contract and accepted by the customer. The Company recognizes revenue in an amount that reflects the consideration the Company expects to receive taking into account any variation that may result from rights of return. The Company is required to remit excise tax to the Canada Revenue Agency on the sale of medical cannabis in Canada. The Company becomes liable for these excise duties when cannabis products are delivered to the customer. In accordance with IFRS 15, revenue presented on the Consolidated Statements of Loss and Comprehensive Loss, represents revenue from the sale of goods less applicable excise tax. Areas of judgment include identifying the customer per the definition within IFRS 15 and determining whether control has passed to the customer. |
Foreign Currency Translation | [e] Foreign currency transactions are translated into Canadian dollars at exchange rates in effect on the date of the transactions. Monetary assets and liabilities denominated in foreign currencies at the statement of financial position date are translated to Canadian dollars at the foreign exchange rate applicable at that date. Realized and unrealized exchange gains and losses are recognized through profit or loss. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. The assets and liabilities of foreign operations with functional currencies other than Canadian dollars, are translated into Canadian dollars at year-end exchange rates. Income and expenses, and cash flows of such foreign operations are translated into Canadian dollars using average exchange rates for the period. Exchange differences resulting from translating foreign operations are recognized in other comprehensive loss and accumulated in equity. |
Financial Instruments | [f] Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. • On initial recognition, a financial asset is classified as measured at amortized cost, fair value through other comprehensive income (''FVOCI''), or fair value through profit and loss (''FVTPL''). The classification of financial assets is based on the business model in which a financial asset is managed and its contractual cash flow characteristics. A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL: It is held within a business model whose objective is to hold assets to collect contractual cash flows; and Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A financial asset (unless it is a trade receivable without a significant financing component that is initially measured at the transaction price) is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition. The following accounting policies apply to the subsequent measurement of financial assets. Financial assets at FVTPL Subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss. Financial assets at amortized cost Subsequently measured at amortized cost using the effective interest method, less any impairment losses. Interest income, foreign exchange gains and losses and impairment losses are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss. • The Company initially recognizes financial liabilities at fair value on the date at which the Company becomes a party to the contractual provisions of the instrument. The Company classifies its financial liabilities as either financial liabilities at FVTPL or amortized cost. Subsequent to initial recognition, other liabilities are measured at amortized cost using the effective interest method. Financial liabilities at FVTPL are stated at fair value with changes being recognized in profit or loss. The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expire. • • Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. • An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a group entity are recognized at the proceeds received, net of direct issue costs. Repurchase of the Company's own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company's own equity instruments. • The Company classifies its financial assets and liabilities depending on the purpose for which the financial instruments were acquired, their characteristics and management intent as outlined below: Classification Cash Amortized cost Trade and other receivables Amortized cost Other investments Fair value through profit or loss Trade and other payables Amortized cost Derivative liability Fair value through profit or loss Notes payable Amortized cost • An expected credit loss ("ECL") model applies to financial assets measured at amortized cost. The Company's financial assets measured at amortized cost and subject to the ECL model consist primarily of trade and other receivables. The Company applies the simplified approach to impairment for trade and other receivables by recognizing a loss allowance based on lifetime expected losses at each reporting date taking into considerations historical credit loss experience and financial factors specific to the debtors and general economic conditions. The Company has assessed the impairment of its trade and other receivables using the expected credit loss model, and no material difference was noted. |
Biological Assets | [g] The Company's biological assets consist of cannabis plants. The Company capitalizes the direct and indirect costs incurred related to the biological transformation of the biological assets between the point of initial recognition and the point of harvest. The Company then measures the biological assets at fair value less cost to sell up to the point of harvest, which becomes the basis for the cost of inventory after harvest. This is determined using a model that estimates the expected harvest yield in grams for plants currently being cultivated, and then adjusts that amount by the expected selling price less costs to sell per gram. The net unrealized gains or losses arising from changes in fair value less cost to sell during the year are included in the results of operations of the related period. |
Inventories | [h] Inventory of harvested work-in-process and finished goods are valued at the lower of cost and net realizable value. Inventory of harvested cannabis is transferred from biological assets at their fair value at harvest, which becomes the initial deemed cost. Any subsequent post-harvest costs 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 costs necessary to make the sale. Inventory for supplies and consumables are valued at the lower of cost and net realizable value, with cost determined using the average cost basis. |
Impairment of long-lived assets | [i] Long-lived assets, including property, plant and equipment and intangible assets are tested for impairment when there are indicators of impairment at each reporting date or whenever events or changes in circumstances indicate that the carrying amount of an asset exceeds its recoverable amount. Intangible assets with an indefinite useful life are tested for impairment at least annually in the fourth quarter and whenever there is an indication that the asset may be impaired. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the cash-generating unit, or "CGU"). The recoverable amount of an asset or a CGU is the higher of its fair value, less costs to sell, and its value in use. If the carrying amount of an asset exceeds its recoverable amount, an impairment charge is recognized immediately in net loss equal to the amount by which the carrying amount exceeds the recoverable amount. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the lesser of the revised estimate of recoverable amount, and the carrying amount that would have been recorded had no impairment loss been recognized previously. |
Income Taxes | [j] Income tax expense comprises of current and deferred tax. Current tax and deferred tax are recognized in net profit or loss except to the extent that it relates to a business combination or items recognized directly in equity or in other comprehensive loss. Current income taxes are recognized for the estimated income taxes payable or receivable on taxable income or loss for the current year and any adjustment to income taxes payable in respect of previous years. Current income taxes are determined using tax rates and tax laws that have been enacted or substantively enacted by the year-end date. Deferred tax assets and liabilities are recognized where the carrying amount of an asset or liability differs from its tax base, except for taxable temporary differences arising on the initial recognition of goodwill and temporary differences arising on the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction affects neither accounting nor taxable profit or loss. Recognition of deferred tax assets for unused tax losses, tax credits and deductible temporary differences is restricted to those instances where it is probable that future taxable profit will be available against which the deferred tax asset can be utilized. At the end of each reporting period, the Company reassesses unrecognized deferred tax assets. The Company recognizes a previously unrecognized deferred tax asset to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. |
Share-based Compensation | [k] Stock options and warrants awarded to non-employees are accounted for using the fair value of the instrument awarded or service provided, whichever is considered more reliable. Stock options and warrants awarded to employees are accounted for using the fair value method. The fair value of such stock options and warrants granted is recognized as an expense on a proportionate basis consistent with the vesting features of each tranche of the grant. The fair value is calculated using the Black-Scholes option pricing model with assumptions applicable at the date of grant. |
Net Loss per Share | [l] Net loss per share is calculated based on the loss for the financial year and the weighted average number of common shares outstanding during the year. Diluted net loss per share is calculated using the loss for the financial year adjusted for the effect of any dilutive instruments and the weighted average diluted number of shares [ignoring any potential issue of common shares that would be anti-dilutive] during the year. |
New standards, amendments and interpretations adopted by the Company | New standards, amendments and interpretations adopted by the Company IFRS 16 - Leases ["IFRS 16"] The Company has adopted IFRS 16 with an initial adoption date of January 1, 2019. The Company utilized the modified retrospective method to adopt the new standard and therefore, the comparative information has not been restated and continues to be reported under IAS 17, Leases and related interpretations. IFRS 16 specifies how leases will be recognized, measured, presented and disclosed and it provides a single lessee model requiring lessees to recognize right-of-use assets and lease liabilities for all major leases. The Company's accounting policy under IFRS 16 is as follows. At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of identified asset for a period of time in exchange for consideration. The Company recognized a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of the costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use assets are depreciated to the earlier of the end of useful life of the right-of-use asset or the lease term using the straight-line method as this most closely reflects the expected pattern of the consumption of the future economic benefits. The lease term includes periods covered by an option to extend if the Company is reasonably certain to exercise that option. In addition, the right-of-use asset can be periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, and the Company's incremental borrowing rate. The Company used an incremental borrowing rate to measure the lease liabilities in the opening balance sheet at January 1, 2019 of 7.73%. The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from the change in an index or rate, if there is a change in the Company's estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, unless it has been reduced to zero. The Company has elected to apply the practical expedient not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less or to leases of low value assets when applicable. The lease payments associated with those leases is recognized as an expense on a straight-line basis over the lease term. The Company has also elected to apply the practical expedient to grandfather the assessment of which transactions are leases on the date of initial application, as previously assessed under IAS 17 and IFRIC 4 Determining Whether an Arrangement Contains a Lease. The Company applied the definition of a lease under IFRS 16 to contracts entered into or changed on or after January 1, 2019. On initial application, the Company has elected to record right-of-use assets at the amount of the corresponding lease liability. Right-of-use assets and lease obligations of $243,818 were recorded as at January 1, 2019. When measuring lease liabilities, the Company discounted lease payments using its incremental borrowing rate at January 1, 2019. The following table reconciles the Company's operating lease obligations at December 31, 2018, as previously disclosed in the Company's audited financial statements for the year ended December 31, 2018, to the lease obligations recognized on initial application of IFRS 16 at January 1, 2019: $ Aggregate lease commitments as disclosed at December 31, 2018 315,528 Less: Adjustment to lease commitments (24,528 ) Less: Impact of present value (47,182 ) Opening IFRS 16 lease obligation as at January 1, 2019 243,818 The Company did not have any leases subject to the low-value or short-term lease recognition exemptions upon adoption of IFRS 16 and as at December 31, 2019. |
Nature of business (Table)
Nature of business (Table) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Nature of business [abstract] | |
Schedule of ownership percentage in subsidiaries | Ownership Ownership percentage percentage Entity Name Country December 31, 2019 December 31, 2018 % % FV Pharma Inc. Canada 100 100 Prismic Pharmaceuticals Inc. USA 100 — |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | |
Schedule of estimated useful lives of assets | Computer equipment 30% declining balance Production equipment 20% declining balance Furniture and fixtures 20% declining balance Facility and related 20 years under straight-line Land Not amortized Intellectual Property 5 years |
Schedule of applied the definition of a lease under IFRS 16 to contracts | $ Aggregate lease commitments as disclosed at December 31, 2018 315,528 Less: Adjustment to lease commitments (24,528 ) Less: Impact of present value (47,182 ) Opening IFRS 16 lease obligation as at January 1, 2019 243,818 |
Acquisition of Prismic Pharma_2
Acquisition of Prismic Pharmaceutical (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about business combination [abstract] | |
Schedule of share options and warrants | Share Options Warrants Grant date share price $32.16 $32.16 Exercise Price $2.61 - $17.89 $2.61 - $26.73 Expected dividend yield — — Risk free interest rate 1.39% - 1.66% 1.41% - 1.52% Expected life (years) 0.98—16.21 1.39—6.55 Annualized volatility 100% 100% |
Schedule of identifiable assets acquired and liabilities assumed | Fair value recongized on acquisition $ Cash 2,329 Prepaids 26,174 Intellectual Property 24,648,915 Trade and other payables (1,867,250 ) Short-term notes (195,475 ) Notes payable (1,727,484 ) 20,887,209 |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other current payables [abstract] | |
Schedule of trade and other receivables | December 31, December 31, 2019 2018 $ $ Sales tax recoverable 2,033,535 982,663 Rent receivable 12,990 8,325 Other 23,530 — 2,070,055 990,988 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Classes of current inventories [abstract] | |
Schedule of inventories | Biological asset fair value Capitalized cost adjustment Impairment Carrying value $ $ $ $ Harvested cannabis Work in process 1,576,556 (431,627 ) (605,598 ) 539,331 Finished good 82,463 15,707 (76,979 ) 21,191 1,659,019 (415,920 ) (682,577 ) 560,522 Hemp products Raw materials 100,000 — — 100,000 100,000 — — 100,000 Other inventory Supplies 282,417 282,417 282,417 — — 282,417 2,041,436 (415,920 ) (682,577 ) 942,939 |
Biological assets (Tables)
Biological assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about biological assets [abstract] | |
Schedule of biological assets | $ Balance, December 31, 2018 — Capitalized costs 1,297,734 Change in fair value less costs to sell due to biological transformation (682,739 ) Transferred to inventory upon harvest (614,995 ) Balance, December 31, 2019 — |
Schedule of unobservable input used to estimate fair value of biological assets | Assumptions: As at December 31, 2019 Input i Expected yields for cannabis plants (average grams per plant) 13 grams dry flower ii Weighted average number of growing weeks completed as a percentage of total growing weeks as at period end 73% iii Estimated selling price per gram $1.00 for flower $0.50 for trim iv After harvest cost to complete and sell per gram $1.91 for dry flower $1.25 for dry trim |
Other investments (Tables)
Other investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Other Investments [Abstract] | |
Schedule of Other investments | Balance at Change in fair Balance at December 31, Proceeds value through December 31, Entity Instrument Note 2018 Additions from sale profit or loss 2019 $ $ $ $ $ Pharmadrug Inc. Shares (i) — 3,000,000 — (2,660,940 ) 339,060 Cannara Biotech Inc. Shares (ii) 11,215,395 — — (2,146,357 ) 9,069,038 Clover Cannastrip Shares (iii) 1,500,000 — — (1,500,000 ) — High Tide Shares (iv) 1,798,040 — 614,520 (1,183,520 ) — High Tide Warrants (iv) 251,115 — — (251,115 ) — HUGE Shops Shares (v) 1,300,000 — — (539,132 ) 760,868 SciCann Therapeutics Shares (vi) 1,999,991 — — (1,287,743 ) 712,248 Solarvest BioEnergy Inc. Shares (vii) — 690,000 — (255,000 ) 435,000 Solarvest BioEnergy Inc. Warrants (vii) — 385,784 — (269,134 ) 116,650 Solarvest BioEnergy Inc. Convertible debenture (vii) — 1,924,216 — (1,576,216 ) 348,000 18,064,541 6,000,000 614,520 (11,669,157 ) 11,780,864 |
Right-of-use asset (Tables)
Right-of-use asset (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |
Schedule of Right-of-use asset | $ Balance – January 1, 2019 243,818 Depreciation (48,764 ) Impairment (67,644 ) Balance – December 31, 2019 127,410 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Schedule of property, plant and equipment | Furniture and Computer Facility and Production fixtures equipment related equipment Land Total $ $ $ $ $ $ Cost Balance, December 31, 2017 123,218 — 7,068,820 — 1,100,000 8,292,038 Additions 209,795 220,150 3,350,156 252,731 — 4,032,832 Balance, December 31, 2018 333,013 220,150 10,418,976 252,731 1,100,000 12,324,870 Additions 126,425 73,183 142,824 191,686 — 534,118 Impairment (86,730 ) — (101,683 ) (26,643 ) — (215,056 ) Balance, December 31, 2019 372,708 293,333 10,460,117 417,774 1,100,000 12,643,932 Accumulated depreciation Balance, December 31, 2017 — — — — — — Depreciation 76,179 66,045 — 40,970 — 183,194 Balance, December 31, 2018 76,179 66,045 — 40,970 — 183,194 Depreciation 100,652 68,186 439,903 87,084 — 695,825 Impairment (27,754 ) — (5,084 ) (6,394 ) — (39,232 ) Balance, December 31, 2019 149,077 134,231 434,819 121,660 — 839,787 Carrying value Balance, December 31, 2018 256,834 154,105 10,418,976 211,761 1,100,000 12,141,676 Balance, December 31, 2019 223,631 159,102 10,025,298 296,114 1,100,000 11,804,145 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Changes in intangible assets other than goodwill [abstract] | |
Schedule of intangible assets | $ Cost Balance, December 31, 2018 — Acquisition of Prismic Pharmaceuticals Inc. 24,648,915 Additions 389,640 Effects of foreign exchange (186,463 ) Balance, December 31, 2019 24,852,092 Accumulated amortization Balance, December 31, 2018 — Amortization 2,534,047 Effects of foreign exchange (40,887 ) Balance, December 31, 2019 2,493,160 Carrying value Balance, December 31, 2018 — Balance, December 31, 2019 22,358,932 |
Lease obligations (Tables)
Lease obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Lease liabilities [abstract] | |
Schedule of lease obligations | $ Balance – January 1, 2019 243,818 Add: Interest Expense 15,258 Less: Lease Payments (56,207 ) Balance – December 31, 2019 202,869 Current 56,207 Non-current 146,662 Balance – December 31, 2019 202,869 |
Schedule of maturity analysis of operating lease payments | $ Less than one year 56,206 One to two years 59,642 Two to three years 59,954 Three to four years 59,954 Therafter — Total undiscounted lease payments payable 235,756 Less: impact of present value (32,887 ) Balance as at December 31, 2019 202,869 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [abstract] | |
Schedule of notes payable | $ Short-term notes 193,996 Notes payable 1,714,416 Balance as at December 31, 2019 1,908,412 |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of reserves within equity [abstract] | |
Schedule of changes in share capital | Class A shares Class B shares Warrants # $ # $ # $ Balance, December 31, 2017 72 201,500 3,794,846 12,794,963 354,996 2,116,900 Share issued — — 2,268,035 47,853,745 — — Share issuance costs — — — (6,634,405 ) — — Reverse acquisition — — 545,505 9,868,179 37,313 118,875 Warrant valuations — — — (2,366,670 ) 198,835 2,366,670 Share-based payments — — — — — 294,287 Share options exercised — — 190,463 5,145,825 — — Share options cancelled — — — — — — Warrants exercised — — 44,931 1,254,665 (44,932 ) (454,587 ) Balance, December 31, 2018 72 201,500 6,843,780 67,916,302 546,212 4,442,145 Balance, December 31, 2018 72 201,500 6,843,780 67,916,302 546,212 4,442,145 Shares issued [a] [b] [c] [d] [e] — — 408,651 11,539,417 — — Issued on acquisition of net assets of Prismic Pharmaceuticals, Inc. [f] — — 510,940 16,431,818 67,598 1,888,086 Share options exercised — — 130,189 1,782,438 — — Warrants exercised — — 12,167 145,174 (12,167 ) (50,183 ) Warrants expired — — — — (134,192 ) (535,014 ) Balance, December 31, 2019 72 201,500 7,905,727 97,815,149 467,451 5,745,034 |
Disclosure of changes in warrants outstanding and weighted average exercise price | Number of warrants Weighted average exercise price # $ Outstanding as at December 31, 2017 354,996 5.80 Granted 236,148 16.57 Exercised (44,932 ) 17.79 Outstanding as at December 31, 2018 546,212 9.47 Granted 67,598 10.45 Exercised (12,167 ) 7.81 Expired (134,192 ) 7.64 Outstanding as at December 31, 2019 467,451 10.20 |
Disclosure of fair value assumptions of warrants outstanding | 2019 2018 Grant date share price $32.16 $4.42 - $18.09 Exercise price $2.61 - $26.73 $4.42 - $26.13 Expected dividend yield — — Risk free interest rate 1.41% - 1.52% 1.70% - 2.17% Expected life 1.39 - 6.55 2 years Expected volatility 100% 100% |
Disclosure of number of warrants outstanding and exercise price | The following table is a summary of the Company's warrants outstanding as at December 31, 2019: Warrants Outstanding Exercise price Number outstanding Expiry Date $ # November 30, 2020 2.61 16,787 September 15, 2022 4.42 199,005 August 1, 2021 5.43 4,476 September 11, 2023 5.43 22,382 January 5, 2020 6.03 37,313 July 24, 2023 13.07 3,357 May 20, 2023 16.08 7,311 May 24, 2022 18.09 163,535 May 4, 2025 26.73 3,730 May 10, 2025 26.73 1,865 May 17, 2025 26.73 3,730 May 31, 2025 26.73 1,865 January 16, 2026 26.73 1,722 January 20, 2026 26.73 373 10.20 467,451 Warrants Outstanding Exercise price Number outstanding Expiry Date $ # September 15, 2022 4.42 199,005 October 20, 2019 7.56 11,970 November 1, 2019 7.56 69,240 November 14, 2019 7.56 52,532 November 21, 2019 7.56 10,263 December 12, 2019 7.56 1,084 December 29, 2019 7.56 1,072 January 5, 2020 6.03 37,313 May 24, 2022 18.09 163,733 9.47 546,212 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Disclosure of stock options granted | Number of options Weighted average exercise price # $ Outstanding as at December 31, 2017 206,219 4.44 Granted 593,781 65.80 Exercised (240,214 ) 11.31 Cancelled (74,627 ) 10.05 Outstanding as at December 31, 2018 485,159 74.53 Granted 1,363,322 20.68 Exercised (82,094 ) 10.02 Forfeited (12,438 ) 56.28 Cancelled (299,006 ) 115.80 Outstanding as at December 31, 2019 1,454,943 21.96 Exercisable as at December 31, 2019 1,200,242 21.24 |
Disclosure of fair values of options granted using the Black-Scholes option pricing model | 2019 2018 Grant date share price $6.45 — $75.38 $10.05 — $142.71 Exercise price $7.17 — $75.38 $10.05 — $148.74 Expected dividend yield — — Risk free interest rate 1.24% — 1.90% 1.97% — 2.41% Expected life 5 years 5 years Expected volatiity 100% 100% |
Disclosure of number and weighted average remaining contractual life of outstanding and exercisable share options | The following table is a summary of the Company’s share options outstanding as at December 31, 2019: Options outstanding Options exercisable Weighted average remaining contractual Exercise price Number outstanding life [years] Exercise price Number exercisable $ # # $ # 2.61 35,065 3.49 2.61 35,065 4.42 99,502 2.71 4.42 99,502 5.43 16,264 3.49 5.43 16,264 10.65 3,730 3.49 10.65 3,730 13.07 10,855 3.49 13.07 10,855 13.47 1,418 3.49 13.47 1,418 16.08 18,409 3.49 16.08 18,409 17.89 4,178 3.49 17.89 4,178 18.09 37,313 3.34 18.09 37,313 20.10 493,363 4.72 20.10 493,363 21.11 12,438 4.67 21.11 12,438 24.12 9,950 4.59 24.12 6,219 26.13 14,925 3.62 26.13 14,925 40.20 29,851 4.45 40.20 22,388 44.22 2,488 3.41 44.22 2,488 47.24 1,493 4.37 47.24 1,493 50.25 227,861 5.09 50.25 129,353 52.26 498 4.21 52.26 498 55.28 498 4.12 55.28 498 59.30 498 3.96 59.30 498 7.17 199,005 4.83 7.17 199,005 7.50 — — 7.50 — 75.38 498 4.04 75.38 498 7.63 203,750 5.34 7.63 58,750 86.43 1,244 3.88 86.43 1,244 88.44 14,925 3.87 88.44 14,925 120.60 9,950 3.71 120.60 9,950 142.71 4,974 3.74 142.71 4,975 21.96 1,454,943 4.59 21.24 1,200,242 The following table is a summary of the Company's share options outstanding as at December 31, 2018: Options outstanding Options exercisable Weighted average remaining contractual Exercise price Number outstanding life [years] Exercise price Number exercisable $ # # $ # 4.42 149,254 3.71 4.42 149,254 5.03 2,488 0.98 5.03 2,488 18.09 42,289 4.35 18.09 42,289 20.10 33,169 4.27 20.10 16,584 26.13 14,925 4.62 26.13 14,925 56.28 12,438 4.91 56.28 — 59.30 498 4.96 59.30 498 86.43 1,244 4.88 86.43 1,244 88.44 14,925 4.87 88.44 14,925 120.60 9,950 4.71 120.60 9,950 142.71 4,975 4.74 142.71 1,658 148.74 199,004 4.70 148.74 — 74.53 485,159 4.32 19.91 253,815 |
Loss per share (Tables)
Loss per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
Schedule of loss per share | 2019 2018 # # Warrants 467,451 546,212 Share Options 1,454,943 485,159 1,922,394 1,031,371 |
General and administrative (Tab
General and administrative (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Selling, general and administrative expense [abstract] | |
Schedule of general and administrative expense | 18. General and administrative Components of general and administrative expenses for the years ended December 31, 2019 and 2018 were as follows: 2019 2018 $ $ Professional fees 3,730,556 1,955,253 Stock promotion 2,902,453 2,803,588 Salaries, wages and benefits 2,267,308 1,740,720 Consulting fees 2,288,129 2,037,049 General office, travel and adminsitration expenditures 2,172,824 726,509 Repairs, maintenance and utilities 924,945 1,360,477 Shareholder and public company costs 440,746 124,973 Listing expense — 7,991,791 Foreign exchange loss 84,568 — 14,811,529 18,740,360 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income taxes paid (refund) [abstract] | |
Schedule of provision for income taxes | 2019 2018 $ $ Loss before income taxes (52,013,186 ) (22,710,624 ) Statutory federal and provincial tax rate 26.50% 26.50% Income tax recovery at the statutory tax rate (13,783,494 ) (6,018,315 ) Permanent differences 7,797,290 2,706,000 Other adjustment 6,334,913 — Change in tax benefits not recognized (348,709 ) 3,312,315 — — |
Schedule of deferred tax assets (liabilities) | 2019 2018 Deferred tax liabilities $ $ Other investments (168,092 ) (1,334,000 ) Capital losses carried forward 168,092 1,334,000 Deferred tax liabilities not recognized — — |
Schedule of temporary differences for which no deferred tax asset is recognised | 2019 2018 $ $ Property, plant and equipment 1,054,843 — Other investments 1,287,743 — Share issuance costs 1,169,642 3,772,000 Non-capital losses carried forward - Canada 27,518,609 29,272,000 Net operating losses carried forward - US 274,454 — Capital losses carried forward 350,465 — Unrealized fair value on biological assets and inventory 1,098,497 — 32,754,253 33,044,000 |
Schedule of non-capital loss carryforwards | $ 2038 12,492,296 2039 15,026,313 27,518,609 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Commitments And Contingent Liabilities [abstract] | |
Disclosure of quantities available to supply by fiscal period | Year Commitment 2020 350 kilograms 2021 650 kilograms 2022 1,000 kilograms 2023 1,000 kilograms 2024 1,000 kilograms |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |
Schedule of key management personnel compensation | 2019 2018 $ $ Salaries, benefits, bonuses and consulting fees 4,836,192 1,814,115 Share-based payments 12,476,385 3,215,401 Total 17,312,577 5,029,516 |
Nature of business (Narrative)
Nature of business (Narrative) (Details) - CAD ($) | 1 Months Ended | 12 Months Ended | |
Oct. 16, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of nature of business [Line Items] | |||
Accumulated deficit | $ (78,518,005) | $ (26,504,819) | |
Net loss | (52,013,186) | $ (22,710,624) | |
Working capital surplus | $ 2,300,000 | ||
Class B shares | |||
Disclosure of nature of business [Line Items] | |||
Description of reverse share split | October 16, 2019, the Company completed a reverse share split of 201 to 1 Class B Shares. |
Significant accounting polici_4
Significant accounting policies (Narrative) (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Summary Of Significant Accounting Policies [Abstract] | ||
Incremental borrowing rate to discount lease liabilities | 7.73% | |
Lease liabilities | $ 202,869 | $ 243,818 |
Acquisition of Prismic Pharma_3
Acquisition of Prismic Pharmaceutical (Narrative) (Details) | 1 Months Ended | 12 Months Ended | |
Jun. 28, 2019CAD ($)Share$ / sharesshares | Dec. 31, 2019CAD ($)shares | Dec. 31, 2018CAD ($)shares | |
Disclosure of detailed information about business combination [line items] | |||
Shares issued | $ 11,539,417 | $ 47,853,745 | |
Number of warrants issued | shares | 67,598 | 236,148 | |
Prismic Pharmaceuticals Inc. ("Prismic") | |||
Disclosure of detailed information about business combination [line items] | |||
Consideration transferred, acquisition-date fair value | $ 20,887,209 | ||
Prismic Pharmaceuticals Inc. ("Prismic") | Class B subordinate voting shares | |||
Disclosure of detailed information about business combination [line items] | |||
Consideration transferred, acquisition-date fair value | $ 16,431,818 | ||
Issued on acquisition of net assets of Prismic Pharmaceuticals, Inc (shares) | shares | 510,940 | ||
Share issue price per share | $ / shares | $ 32.16 | ||
Prismic Pharmaceuticals Inc. ("Prismic") | Stock options | |||
Disclosure of detailed information about business combination [line items] | |||
Consideration transferred, acquisition-date fair value | $ 2,567,305 | ||
Number of instruments or interests issued or issuable | Share | 89,898 | ||
Prismic Pharmaceuticals Inc. ("Prismic") | Warrants | |||
Disclosure of detailed information about business combination [line items] | |||
Consideration transferred, acquisition-date fair value | $ 1,888,086 | ||
Number of instruments or interests issued or issuable | Share | 67,598 |
Inventory (Narrative) (Details)
Inventory (Narrative) (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Classes of current inventories [abstract] | ||
Cost of inventory impairment charges | $ 1,315,941 |
Biological assets (Narrative) (
Biological assets (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019g | |
Disclosure of detailed information about biological assets [abstract] | |
Expected yield of dry flower | 19,532 |
Expected yield of dry trim | 25,002 |
Expected growth cycle completed | 73.00% |
Expected growth cycle | 84 days |
Other investments (Narrative) (
Other investments (Narrative) (Details) - CAD ($) | Feb. 05, 2020 | Feb. 04, 2020 | Nov. 04, 2019 | May 07, 2019 | Sep. 06, 2018 | Nov. 22, 2019 | Sep. 20, 2019 | Apr. 24, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2018 | May 31, 2018 |
Disclosure Of Other Investments [Line Items] | ||||||||||||
Loss on change in fair value of derivative liability | $ 3,568,305 | |||||||||||
Proceeds from issuing shares | 4,593,777 | $ 44,987,422 | ||||||||||
Derivative liability | $ 2,646,269 | |||||||||||
Class B shares | ||||||||||||
Disclosure Of Other Investments [Line Items] | ||||||||||||
Share issue price per share | $ 20.10 | |||||||||||
Proceeds from issuing shares | $ 4,593,777 | |||||||||||
Pharmadrug Inc. | Share Exchange Agreement | ||||||||||||
Disclosure Of Other Investments [Line Items] | ||||||||||||
Number of shares acquired | 13,562,386 | |||||||||||
Share price per share | $ 0.2212 | |||||||||||
Pharmadrug Inc. | Share Exchange Agreement | Class B shares | ||||||||||||
Disclosure Of Other Investments [Line Items] | ||||||||||||
Number of shares issued in share exchange | 61,892 | 65,577 | ||||||||||
Share issue price per share | $ 45.75 | |||||||||||
Value of shares issued in share exchange | $ 3,000,000 | |||||||||||
Loss on change in fair value of derivative liability | $ 1,422,036 | |||||||||||
Pharmadrug Inc. | Share Exchange Agreement | Class B shares | ||||||||||||
Disclosure Of Other Investments [Line Items] | ||||||||||||
Number of shares issued in share exchange | 61,892 | 65,577 | ||||||||||
Share issue price per share | $ 45.75 | |||||||||||
Value of shares issued in share exchange | $ 3,000,000 | |||||||||||
Loss on change in fair value of derivative liability | $ 1,422,036 | |||||||||||
Cannara Biotech Inc. | Class B shares | ||||||||||||
Disclosure Of Other Investments [Line Items] | ||||||||||||
Number of shares held subject to escrow arrangement | 85,003,750 | |||||||||||
Quoted market price of investments | $ 0.125 | |||||||||||
Percentage of aggregate discount for escrow | 19.53% | |||||||||||
Aggregate discount for shares in escrow | $ 1,556,431 | |||||||||||
Cannara Biotech Inc. | Class B shares | Subsequent events | ||||||||||||
Disclosure Of Other Investments [Line Items] | ||||||||||||
Proceeds from issuing shares | $ 7,743,492 | |||||||||||
Cannara Biotech Inc. | Unrestricted Class B shares | Level 1 | ||||||||||||
Disclosure Of Other Investments [Line Items] | ||||||||||||
Number of shares held subject to escrow arrangement | 21,250,935 | |||||||||||
Cannara Biotech Inc. | Class B shares held in escrow | Level 2 | ||||||||||||
Disclosure Of Other Investments [Line Items] | ||||||||||||
Number of shares held subject to escrow arrangement | 63,752,815 | |||||||||||
Clover Cannastrip Thin Film Technologies Corp. | ||||||||||||
Disclosure Of Other Investments [Line Items] | ||||||||||||
Value of subscribed equity units in brokered private placement | $ 1,500,000 | |||||||||||
High Tide Inc. | ||||||||||||
Disclosure Of Other Investments [Line Items] | ||||||||||||
Number of shares held | 4,551,999 | |||||||||||
Number of warrants held | 2,000,000 | |||||||||||
Proceeds from sale of shares and warrants | $ 614,520 | |||||||||||
HUGE Shops | ||||||||||||
Disclosure Of Other Investments [Line Items] | ||||||||||||
Number of shares held | 17,333,333 | |||||||||||
Subscription price per share | $ 0.075 | |||||||||||
Percentage of decline in fair value of investment | 41.50% | |||||||||||
Change in fair value of investment | $ 54,000 | |||||||||||
SciCann Therapeutics Inc. | ||||||||||||
Disclosure Of Other Investments [Line Items] | ||||||||||||
Number of shares held | 117,648 | |||||||||||
Subscription price per share | $ 17 | $ 17 | ||||||||||
Percentage of decline in fair value of investment | 64.40% | |||||||||||
Change in fair value of investment | $ 129,000 | |||||||||||
Solarvest BioEnergy Inc. | ||||||||||||
Disclosure Of Other Investments [Line Items] | ||||||||||||
Share price per share | $ 0.145 | |||||||||||
Loss on change in fair value of derivative liability | $ 2,146,269 | |||||||||||
Number of shares held | 3,000,000 | |||||||||||
Number of warrants held | 3,000,000 | |||||||||||
Principal amount of convertible debenture | $ 2,400,000 | $ 2,400,000 | ||||||||||
Fair value of shares and warrants acquired | 3,000,000 | |||||||||||
Exercise price of warrants | $ 0.25 | |||||||||||
Quoted market price of investments | $ 0.145 | |||||||||||
Risk free rate of warrants | 1.71% | |||||||||||
Expected volatility of warrants | 94.00% | |||||||||||
Expected term of warrants | 1 year 4 months 6 days | |||||||||||
Expected dividend yield | 0.00% | |||||||||||
Debt conversion ratio | 1 | |||||||||||
Solarvest BioEnergy Inc. | Subsequent events | Class B shares | ||||||||||||
Disclosure Of Other Investments [Line Items] | ||||||||||||
Number of additional shares issued to settle derivative liability | 225,371 | |||||||||||
Solarvest BioEnergy Inc. | Share Exchange Agreement | ||||||||||||
Disclosure Of Other Investments [Line Items] | ||||||||||||
Derivative financial liabilities | 500,000 | |||||||||||
Guaranteed minimum liquidation value of shares | $ 3,000,000 | $ 3,000,000 | ||||||||||
Solarvest BioEnergy Inc. | Share Exchange Agreement | Class B shares | ||||||||||||
Disclosure Of Other Investments [Line Items] | ||||||||||||
Number of shares issued in share exchange | 49,751 | |||||||||||
Solarvest BioEnergy Inc. | Share Exchange Agreement | Class B shares | ||||||||||||
Disclosure Of Other Investments [Line Items] | ||||||||||||
Number of shares issued in share exchange | 49,751 | |||||||||||
Share issue price per share | $ 50.25 | |||||||||||
Value of shares issued in share exchange | $ 2,500,000 |
Property, plant and equipment_2
Property, plant and equipment (Narrative) (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, plant and equipment [abstract] | ||
Depreciation on production of biological assets and inventory | $ 131,955 | |
Impairment loss recognised in profit or loss, property, plant and equipment | $ 175,824 |
Intangible assets (Narrative) (
Intangible assets (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Changes in intangible assets other than goodwill [abstract] | |
Useful life of intellectual property | 5 years |
Notes Payable (Narrative) (Deta
Notes Payable (Narrative) (Details) | Dec. 31, 2019 |
Short-term notes | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |
Notes payable, interest rate | 10.00% |
Notes payable | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |
Notes payable, interest rate | 20.00% |
Share capital (Narrative) (Deta
Share capital (Narrative) (Details) - CAD ($) | Nov. 04, 2019 | Oct. 04, 2019 | May 07, 2019 | Oct. 16, 2019 | Sep. 20, 2019 | Apr. 24, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of classes of share capital [line items] | ||||||||
Loss on change in fair value of derivative liability | $ 3,568,305 | |||||||
Proceeds from issuance of shares | 4,593,777 | $ 44,987,422 | ||||||
Share issue costs | $ 32,705 | $ 3,768,381 | ||||||
Solarvest BioEnergy Inc. | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Share price per share | $ 0.145 | |||||||
Loss on change in fair value of derivative liability | $ 2,146,269 | |||||||
Share Exchange Agreement | Pharmadrug Inc. | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of shares acquired | 13,562,386 | |||||||
Share price per share | $ 0.2212 | |||||||
Class A shares | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Description of voting rights | The holders of Class A shares are entitled to 276,660 votes per class A share held. | |||||||
Class B shares | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of shares issued for debt settlement | 3,735 | |||||||
Value of shares issued for debt settlement | $ 25,000 | |||||||
Description of reverse share split | October 16, 2019, the Company completed a reverse share split of 201 to 1 Class B Shares. | |||||||
Number of shares issued in private placement | 228,670 | |||||||
Share issue price per share | $ 20.10 | |||||||
Proceeds from issuance of shares | $ 4,593,777 | |||||||
Share issue costs | $ 32,705 | |||||||
Recognition of loss on change in fair value of derivative liability | ||||||||
Issued on acquisition of net assets of Prismic Pharmaceuticals, Inc (shares) | 510,940 | |||||||
Class B shares | Share Exchange Agreement | Pharmadrug Inc. | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of shares issued in share exchange | 61,892 | 65,577 | ||||||
Value of shares issued in share exchange | $ 3,000,000 | |||||||
Share issue price per share | $ 45.75 | |||||||
Loss on change in fair value of derivative liability | $ 1,422,036 | |||||||
Class B shares | Share Exchange Agreement | Solarvest BioEnergy Inc. | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of shares issued in share exchange | 49,751 |
Share-based compensation (Narra
Share-based compensation (Narrative) (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | ||
Share-based compensation expenses | $ 16,061,319 | $ 6,440,406 |
Bonus expense to be paid in subsequent period | $ 1,730,794 |
Commitments and contingencies_2
Commitments and contingencies (Narrative) (Details) | Feb. 12, 2019CAD ($) | Dec. 31, 2019CAD ($)shares | Dec. 31, 2019USD ($) |
Disclosure of contingent liabilities [line items] | |||
Inventory | $ 942,939 | ||
Employee Related Liability | 97,320 | ||
Supply agreement | Canntab Therapeutics Ltd ("Canntab") World Class Extractions Inc ("World Class") | |||
Disclosure of contingent liabilities [line items] | |||
Inventory | $ 100,000 | ||
Anticipated purchase price plus applicable taxes value | 1,000,000 | ||
Amount of deposit paid to supplier | 166,667 | ||
Outstanding commitment to purchase additional product | 166,667 | ||
Collective commitment to purchase product | $ 1,000,000 | ||
Supply agreement, option to purchase amount | $ 5,000,000 | ||
Supply agreement, option purchase period | 5 years | ||
Purchase price per kg per 1% of CBD extracted | $ 100 | ||
Epitech License Agreement | |||
Disclosure of contingent liabilities [line items] | |||
Non refundable sum due and payable upon first notification of FDA | $ 700,000 | ||
Non refundable sum payable within ten business days of first notification FDA | $ 1,000,000 | ||
Percentage of lump sum payment received to pay for non prescription drug rights | 25.00% | 25.00% | |
Percentage of one off lump sum payment to pay for prescription drug rights | 5.00% | 5.00% | |
Percentage of net sales of Licensed Product as first payment condition | 7.00% | ||
Percentage of net receipts from commercial partners as second payment condition | 25.00% | ||
Percentage of net sales or net receipts of licensed products as third payment condition | 5.00% | ||
Heritage Building Restoration Commitment | |||
Disclosure of contingent liabilities [line items] | |||
Estimated cost of restoration in commitment | $ 517,000 | ||
Legal proceedings contingent liability | |||
Disclosure of contingent liabilities [line items] | |||
Claim issued by contractor for various purported damages | 1,700,000 | ||
Claim for lien component | 188,309 | ||
Security deposit in respect of amount claimed and estimated legal fees | $ 235,387 | ||
Contingent liability for construction and development costs | Auxly Cannabis Group Inc. | Definitive Strategic Alliance and Streaming Agreement | |||
Disclosure of contingent liabilities [line items] | |||
Number of Class B shares issued from treasury under private placement | shares | 37,313 | ||
Amount of Class B shares issued from treasury under private placement | $ 7,500,000 |
Related party transactions (Nar
Related party transactions (Narrative) (Details) | Nov. 04, 2019CAD ($)$ / sharesshares | Dec. 31, 2019CAD ($)Share | Dec. 31, 2018CAD ($) |
Disclosure of transactions between related parties [line items] | |||
Key management personnel compensation | $ 17,312,577 | $ 5,029,516 | |
Amount of bonus | 4,836,192 | 1,814,115 | |
Consulting fees expenses | 2,288,129 | 2,037,049 | |
Directors' remuneration expense | 203,521 | 66,667 | |
Director's remuneration payable | 98,521 | ||
Share-based payments expense | 12,476,385 | $ 3,215,401 | |
Class B shares | |||
Disclosure of transactions between related parties [line items] | |||
Number of shares issued in private placement | shares | 228,670 | ||
Share issue price per share | $ / shares | $ 20.10 | ||
Value of shares issued in private placement | $ 4,598,618 | ||
Former President and CEO | |||
Disclosure of transactions between related parties [line items] | |||
Key management personnel compensation | 96,250 | ||
Former CEO | |||
Disclosure of transactions between related parties [line items] | |||
Other allowances | 4,500 | ||
Chief Executive Officer | |||
Disclosure of transactions between related parties [line items] | |||
Payment of expenses | 754,311 | ||
Trade and other payables | 95,708 | ||
Chief Executive Officer | Class B shares | |||
Disclosure of transactions between related parties [line items] | |||
Amount of bonus | $ 1,428,591 | ||
Number of share issued for share-based bonus expense | Share | 200,927 | ||
President | |||
Disclosure of transactions between related parties [line items] | |||
Share-based payments expense | $ 132,178 | ||
President of FSD | Class B shares | |||
Disclosure of transactions between related parties [line items] | |||
Amount of bonus | $ 109,892 | ||
Number of share issued for share-based bonus expense | Share | 15,456 | ||
Chief Financial Officer | |||
Disclosure of transactions between related parties [line items] | |||
Management fees | $ 196,870 | ||
Chief Operating Consultant | |||
Disclosure of transactions between related parties [line items] | |||
Consulting fees expenses | 90,000 | ||
Former Chief Operating Officer | |||
Disclosure of transactions between related parties [line items] | |||
Consulting fees expenses | 16,667 | ||
Independent directors | |||
Disclosure of transactions between related parties [line items] | |||
Directors' remuneration expense | 40,000 | ||
Additional remuneration as Chairman | 10,000 | ||
Officers and Directors | Class B shares | |||
Disclosure of transactions between related parties [line items] | |||
Number of shares subscribed | shares | 164,755 | ||
FV Pharma Inc | Former President and CEO | |||
Disclosure of transactions between related parties [line items] | |||
Key management personnel compensation, retirement benefits | 770,000 | ||
Key management personnel compensation | 54,958 | ||
FV Pharma Inc | President | Class B shares | |||
Disclosure of transactions between related parties [line items] | |||
Amount of bonus | $ 54,946 | ||
Number of share issued for share-based bonus expense | Share | 7,728 | ||
FSD Biosciences | President | |||
Disclosure of transactions between related parties [line items] | |||
Consulting fees expenses | $ 330,436 | ||
FSD Biosciences | President | Class B shares | |||
Disclosure of transactions between related parties [line items] | |||
Amount of bonus | $ 109,892 | ||
Number of share issued for share-based bonus expense | Share | 15,456 |
Capital management (Narrative)
Capital management (Narrative) (Details) - CAD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Capital Management [Abstract] | ||
Share capital | $ 98,016,649 | $ 68,117,802 |
Subsequent events (Narrative) (
Subsequent events (Narrative) (Details) - Class B shares - Subsequent events | Feb. 05, 2020CAD ($)shares | Feb. 04, 2020CAD ($)shares | Jan. 02, 2020Share |
Disclosure of non-adjusting events after reporting period [line items] | |||
Number of instruments granted in share-based payment arrangement | Share | 27,580 | ||
Solarvest BioEnergy Inc. | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Number of additional shares issued to settle derivative liability | shares | 225,371 | ||
Derivative liabilities settled through issuance of shares | $ | $ 2,646,269 | ||
Cannara Biotech Inc. | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Number of shares sold for investment in Cannara | shares | 85,003,750 | ||
Gross proceeds of common stock | $ | $ 7,743,492 |
Nature of business - Schedule o
Nature of business - Schedule of ownership percentage in subsidiaries (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
FV Pharma Inc. | ||
Disclosure of subsidiaries [line items] | ||
Country | Canada | |
Ownership percentage | 100.00% | 100.00% |
Prismic Pharmaceuticals Inc. | ||
Disclosure of subsidiaries [line items] | ||
Country | USA | |
Ownership percentage | 100.00% |
Significant accounting polici_5
Significant accounting policies - Schedule of estimated useful lives of assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Computer hardware and equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 30% |
Method of amortized | declining balance |
Production equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 20% |
Method of amortized | declining balance |
Furniture and fixtures | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 20% |
Method of amortized | declining balance |
Facility | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 20 years |
Method of amortized | straight-line |
Land | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Method of amortized | Not amortized |
Intellectual Property | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives for intangible assets | 5 years |
Significant accounting polici_6
Significant accounting policies - Schedule of applied the definition of a lease under IFRS 16 to contracts (Details) - CAD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Summary Of Significant Accounting Policies [Abstract] | ||
Aggregate lease commitments as disclosed at December 31, 2018 | $ 315,528 | |
Less: Adjustment to lease commitments | (24,528) | |
Less: Impact of present value | (47,182) | |
Lease obligation | $ 202,869 | $ 243,818 |
Acquisition of Prismic Pharma_4
Acquisition of Prismic Pharmaceutical - Schedule of black scholes options pricing model (Details) | 1 Months Ended | 12 Months Ended | |
Jun. 28, 2019Year$ / shares | Dec. 31, 2019$ / shares | Dec. 31, 2018$ / shares | |
Warrants [Abstract] | |||
Grant date share price | $ 32.16 | ||
Expected dividend yield | 0.00% | 0.00% | |
Expected life (years) | 2 years | ||
Annualized volatility | 100.00% | 100.00% | |
Bottom of range | |||
Warrants [Abstract] | |||
Grant date share price | $ 4.42 | ||
Exercise price | $ 2.61 | $ 4.42 | |
Risk free interest rate | 1.41% | 1.70% | |
Expected life (years) | 1 year 4 months 20 days | ||
Top of range | |||
Warrants [Abstract] | |||
Grant date share price | $ 18.09 | ||
Exercise price | $ 26.73 | $ 26.13 | |
Risk free interest rate | 1.52% | 2.17% | |
Expected life (years) | 6 years 6 months 18 days | ||
Prismic Pharmaceuticals Inc. ("Prismic") | |||
Share Options [Abstract] | |||
Grant date share price | $ 32.16 | ||
Expected dividend yield | 0.00% | ||
Annualized volatility | 100.00% | ||
Warrants [Abstract] | |||
Grant date share price | $ 32.16 | ||
Expected dividend yield | 0.00% | ||
Annualized volatility | 100.00% | ||
Prismic Pharmaceuticals Inc. ("Prismic") | Bottom of range | |||
Share Options [Abstract] | |||
Exercise price | $ 2.61 | ||
Risk free interest rate | 1.39% | ||
Expected life | Year | 0.98 | ||
Warrants [Abstract] | |||
Exercise price | $ 2.61 | ||
Risk free interest rate | 1.41% | ||
Expected life (years) | 1 year 4 months 20 days | ||
Prismic Pharmaceuticals Inc. ("Prismic") | Top of range | |||
Share Options [Abstract] | |||
Exercise price | $ 17.89 | ||
Risk free interest rate | 1.66% | ||
Expected life | Year | 16.21 | ||
Warrants [Abstract] | |||
Exercise price | $ 26.73 | ||
Risk free interest rate | 1.52% | ||
Expected life (years) | 6 years 6 months 18 days |
Acquisition of Prismic Pharma_5
Acquisition of Prismic Pharmaceutical - Schedule of identifiable assets acquired and liabilities assumed (Details) - Prismic Pharmaceuticals Inc. ("Prismic") | Jun. 28, 2019CAD ($) |
Disclosure of detailed information about business combination [line items] | |
Cash | $ 2,329 |
Prepaids | 26,174 |
Intellectual Property | 24,648,915 |
Trade and other payables | (1,867,250) |
Short-term notes | (195,475) |
Notes payable | (1,727,484) |
Total consideration transferred, acquisition-date fair value | $ 20,887,209 |
Trade and other receivables- Sc
Trade and other receivables- Schedule of trade and other receivables (Details) - CAD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and other current payables [abstract] | ||
Sales tax recoverable | $ 2,033,535 | $ 982,663 |
Rent receivable | 12,990 | 8,325 |
Other | 23,530 | 0 |
Total trade and other receivables | $ 2,070,055 | $ 990,988 |
Inventory - Schedule of invento
Inventory - Schedule of inventories (Details) | Dec. 31, 2019CAD ($) |
Classes Of Inventories [Line Items] | |
Inventory | $ 942,939 |
Capitalized Cost | |
Classes Of Inventories [Line Items] | |
Inventory | 2,041,436 |
Biological asset fair value adjustment | |
Classes Of Inventories [Line Items] | |
Inventory | (415,920) |
Impairment | |
Classes Of Inventories [Line Items] | |
Inventory | (682,577) |
Harvested cannabis | |
Classes Of Inventories [Line Items] | |
Work in process | 539,331 |
Finished good | 21,191 |
Inventory | 560,522 |
Harvested cannabis | Capitalized Cost | |
Classes Of Inventories [Line Items] | |
Work in process | 1,576,556 |
Finished good | 82,463 |
Inventory | 1,659,019 |
Harvested cannabis | Biological asset fair value adjustment | |
Classes Of Inventories [Line Items] | |
Work in process | (431,627) |
Finished good | 15,707 |
Inventory | (415,920) |
Harvested cannabis | Impairment | |
Classes Of Inventories [Line Items] | |
Work in process | (605,598) |
Finished good | (76,979) |
Inventory | (682,577) |
Hemp products | |
Classes Of Inventories [Line Items] | |
Raw materials | 100,000 |
Inventory | 100,000 |
Hemp products | Capitalized Cost | |
Classes Of Inventories [Line Items] | |
Raw materials | 100,000 |
Inventory | 100,000 |
Hemp products | Biological asset fair value adjustment | |
Classes Of Inventories [Line Items] | |
Raw materials | 0 |
Inventory | 0 |
Hemp products | Impairment | |
Classes Of Inventories [Line Items] | |
Raw materials | 0 |
Inventory | 0 |
Other inventory | |
Classes Of Inventories [Line Items] | |
Supplies | 282,417 |
Inventory | 282,417 |
Other inventory | Capitalized Cost | |
Classes Of Inventories [Line Items] | |
Supplies | 282,417 |
Inventory | 282,417 |
Other inventory | Biological asset fair value adjustment | |
Classes Of Inventories [Line Items] | |
Inventory | 0 |
Other inventory | Impairment | |
Classes Of Inventories [Line Items] | |
Inventory | $ 0 |
Biological assets - Schedule of
Biological assets - Schedule of biological assets (Details) | 12 Months Ended |
Dec. 31, 2019CAD ($) | |
Disclosure of detailed information about biological assets [abstract] | |
Biological assets at beginning of period | $ 0 |
Capitalized costs | 1,297,734 |
Change in fair value less costs to sell due to biological transformation | (682,739) |
Transferred to inventory upon harvest | (614,995) |
Biological assets at end of period | $ 0 |
Biological assets - Schedule _2
Biological assets - Schedule of unobservable input used to estimate fair value of biological assets (Details) | 12 Months Ended |
Dec. 31, 2019CAD ($)g | |
Disclosure of detailed information about biological assets [abstract] | |
Expected yield for cannabis plants of dry flower, per plant | g | 13 |
Expected yield for cannabis plants of dry trim, per plant | g | 16 |
Expected growth cycle completed | 73.00% |
Expected selling price per gram of dried flower | $ 1 |
Expected selling price per gram of trim | 0.50 |
After harvest cost to complete and sell per gram for dry flower | 1.91 |
After harvest cost to complete and sell per gram for dry trim | $ 1.25 |
Other investments - Schedule of
Other investments - Schedule of Other investments (Details) | 12 Months Ended |
Dec. 31, 2019CAD ($) | |
Disclosure Of Other Investments [Line Items] | |
Balance at December 31, 2018 | $ 18,064,541 |
Additions | 6,000,000 |
Proceeds from sale | 614,520 |
Change in fair value through profit or loss | (11,669,157) |
Balance at December 31, 2019 | 11,780,864 |
Pharmadrug Inc. | Shares | |
Disclosure Of Other Investments [Line Items] | |
Balance at December 31, 2018 | 0 |
Additions | 3,000,000 |
Proceeds from sale | 0 |
Change in fair value through profit or loss | (2,660,940) |
Balance at December 31, 2019 | 339,060 |
Cannara Biotech Inc. | Shares | |
Disclosure Of Other Investments [Line Items] | |
Balance at December 31, 2018 | 11,215,395 |
Additions | 0 |
Proceeds from sale | 0 |
Change in fair value through profit or loss | (2,146,357) |
Balance at December 31, 2019 | 9,069,038 |
Clover Cannastrip | Shares | |
Disclosure Of Other Investments [Line Items] | |
Balance at December 31, 2018 | 1,500,000 |
Additions | 0 |
Proceeds from sale | 0 |
Change in fair value through profit or loss | (1,500,000) |
Balance at December 31, 2019 | 0 |
High Tide Inc. | Shares | |
Disclosure Of Other Investments [Line Items] | |
Balance at December 31, 2018 | 1,798,040 |
Additions | 0 |
Proceeds from sale | 614,520 |
Change in fair value through profit or loss | (1,183,520) |
Balance at December 31, 2019 | 0 |
High Tide Inc. | Warrants | |
Disclosure Of Other Investments [Line Items] | |
Balance at December 31, 2018 | 251,115 |
Additions | 0 |
Proceeds from sale | 0 |
Change in fair value through profit or loss | (251,115) |
Balance at December 31, 2019 | 0 |
HUGE Shops | Shares | |
Disclosure Of Other Investments [Line Items] | |
Balance at December 31, 2018 | 1,300,000 |
Additions | 0 |
Proceeds from sale | 0 |
Change in fair value through profit or loss | (539,132) |
Balance at December 31, 2019 | 760,868 |
SciCann Therapeutics Inc. | Shares | |
Disclosure Of Other Investments [Line Items] | |
Balance at December 31, 2018 | 1,999,991 |
Additions | 0 |
Proceeds from sale | 0 |
Change in fair value through profit or loss | (1,287,743) |
Balance at December 31, 2019 | 712,248 |
Solarvest BioEnergy Inc. | Shares | |
Disclosure Of Other Investments [Line Items] | |
Balance at December 31, 2018 | 0 |
Additions | 690,000 |
Proceeds from sale | 0 |
Change in fair value through profit or loss | (255,000) |
Balance at December 31, 2019 | 435,000 |
Solarvest BioEnergy Inc. | Warrants | |
Disclosure Of Other Investments [Line Items] | |
Balance at December 31, 2018 | 0 |
Additions | 385,784 |
Proceeds from sale | 0 |
Change in fair value through profit or loss | (269,134) |
Balance at December 31, 2019 | 116,650 |
Solarvest BioEnergy Inc. | Convertible debenture | |
Disclosure Of Other Investments [Line Items] | |
Balance at December 31, 2018 | 0 |
Additions | 1,924,216 |
Proceeds from sale | 0 |
Change in fair value through profit or loss | (1,576,216) |
Balance at December 31, 2019 | $ 348,000 |
Right-of-use asset - Schedule o
Right-of-use asset - Schedule of right-of-use asset (Details) | 12 Months Ended |
Dec. 31, 2019CAD ($) | |
Disclosure of quantitative information about right-of-use assets [abstract] | |
Beginning balance | $ 243,818 |
Depreciation | (48,764) |
Impairment | (67,644) |
Ending balance | $ 127,410 |
Property, plant and equipment -
Property, plant and equipment - Schedule of property, plant and equipment (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | $ 12,141,676 | |
Impairment | (175,824) | |
Ending balance | 11,804,145 | $ 12,141,676 |
Cost: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 12,324,870 | 8,292,038 |
Additions | 534,118 | 4,032,832 |
Impairment | (215,056) | |
Ending balance | 12,643,932 | 12,324,870 |
Accumulated depreciation: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 183,194 | 0 |
Depreciation | 695,825 | 183,194 |
Impairment | (39,232) | |
Ending balance | 839,787 | 183,194 |
Furniture and fixtures | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 256,834 | |
Ending balance | 223,631 | 256,834 |
Furniture and fixtures | Cost: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 333,013 | 123,218 |
Additions | 126,425 | 209,795 |
Impairment | (86,730) | |
Ending balance | 372,708 | 333,013 |
Furniture and fixtures | Accumulated depreciation: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 76,179 | 0 |
Depreciation | 100,652 | 76,179 |
Impairment | (27,754) | |
Ending balance | 149,077 | 76,179 |
Computer equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 154,105 | |
Ending balance | 159,102 | 154,105 |
Computer equipment | Cost: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 220,150 | 0 |
Additions | 73,183 | 220,150 |
Impairment | 0 | |
Ending balance | 293,333 | 220,150 |
Computer equipment | Accumulated depreciation: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 66,045 | 0 |
Depreciation | 68,186 | 66,045 |
Impairment | 0 | |
Ending balance | 134,231 | 66,045 |
Facility and related | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 10,418,976 | |
Ending balance | 10,025,298 | 10,418,976 |
Facility and related | Cost: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 10,418,976 | 7,068,820 |
Additions | 142,824 | 3,350,156 |
Impairment | (101,683) | |
Ending balance | 10,460,117 | 10,418,976 |
Facility and related | Accumulated depreciation: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 0 | 0 |
Depreciation | 439,903 | 0 |
Impairment | (5,084) | |
Ending balance | 434,819 | 0 |
Production equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 211,761 | |
Ending balance | 296,114 | 211,761 |
Production equipment | Cost: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 252,731 | 0 |
Additions | 191,686 | 252,731 |
Impairment | (26,643) | |
Ending balance | 417,774 | 252,731 |
Production equipment | Accumulated depreciation: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 40,970 | 0 |
Depreciation | 87,084 | 40,970 |
Impairment | (6,394) | |
Ending balance | 121,660 | 40,970 |
Land | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,100,000 | |
Ending balance | 1,100,000 | 1,100,000 |
Land | Cost: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,100,000 | 1,100,000 |
Additions | 0 | 0 |
Impairment | 0 | |
Ending balance | 1,100,000 | 1,100,000 |
Land | Accumulated depreciation: | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 0 | 0 |
Depreciation | 0 | 0 |
Impairment | 0 | |
Ending balance | $ 0 | $ 0 |
Intangible assets - Schedule of
Intangible assets - Schedule of intangible assets (Details) | 12 Months Ended |
Dec. 31, 2019CAD ($) | |
Disclosure of detailed information about intangible assets [line items] | |
Beginning balance | $ 0 |
Ending balance | 22,358,932 |
Cost | |
Disclosure of detailed information about intangible assets [line items] | |
Beginning balance | 0 |
Acquisition of Prismic Pharmaceuticals Inc | 24,648,915 |
Additions | 389,640 |
Effects of foreign exchange | (186,463) |
Ending balance | 24,852,092 |
Accumulated amortization | |
Disclosure of detailed information about intangible assets [line items] | |
Beginning balance | 0 |
Amortization | 2,534,047 |
Effects of foreign exchange | (40,887) |
Ending balance | $ 2,493,160 |
Lease obligations - Schedule of
Lease obligations - Schedule of lease obligations (Details) | 12 Months Ended |
Dec. 31, 2019CAD ($) | |
Lease liabilities [abstract] | |
Balance - January 1, 2019 | $ 243,818 |
Add: Interest Expense | 15,258 |
Less: Lease Payments | (56,207) |
Balance - December 31, 2019 | 202,869 |
Current | 56,207 |
Non-current | $ 146,662 |
Lease obligations - Schedule _2
Lease obligations - Schedule of maturity analysis of operating lease payments (Details) - CAD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of maturity analysis of operating lease payments [line items] | ||
Total undiscounted lease payments payable | $ 235,756 | |
Less: impact of present value | (32,887) | |
Balance - December 31, 2019 | 202,869 | $ 243,818 |
Less than one year | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Total undiscounted lease payments payable | 56,206 | |
One to two years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Total undiscounted lease payments payable | 59,642 | |
Two to three years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Total undiscounted lease payments payable | 59,954 | |
Three to four years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Total undiscounted lease payments payable | 59,954 | |
Therafter | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Total undiscounted lease payments payable | $ 0 |
Notes Payable - Schedule of not
Notes Payable - Schedule of notes payable (Details) | Dec. 31, 2019CAD ($) |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |
Notes payable | $ 1,908,412 |
Short-term notes | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |
Notes payable | 193,996 |
Notes payable | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |
Notes payable | $ 1,714,416 |
Share capital - Schedule of rec
Share capital - Schedule of reconciliation of the share capital (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of classes of share capital [line items] | ||
Beginning balance | $ 51,032,428 | $ 12,413,399 |
Shares issued | 11,539,417 | 47,853,745 |
Share issuance costs | (6,634,405) | |
Reverse acquisition | 10,012,779 | |
Share based payments | 16,061,319 | 6,440,406 |
Share options exercised | 732,598 | 2,857,050 |
Warrants exercised | 94,991 | 800,078 |
Ending balance | 48,222,087 | 51,032,428 |
Class A shares | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance | $ 201,500 | $ 201,500 |
Beginning balance (shares) | 72 | 72 |
Ending balance | $ 201,500 | $ 201,500 |
Ending balance (shares) | 72 | 72 |
Class B shares | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance | $ 67,916,302 | $ 12,794,963 |
Beginning balance (shares) | 6,843,780 | 3,794,846 |
Shares issued | $ 11,539,417 | $ 47,853,745 |
Shares issued (shares) | 408,651 | 2,268,035 |
Issued on acquisition of net assets of Prismic Pharmaceuticals, Inc | $ 16,431,818 | |
Issued on acquisition of net assets of Prismic Pharmaceuticals, Inc (shares) | 510,940 | |
Share issuance costs | $ (6,634,405) | |
Reverse acquisition | $ 9,868,179 | |
Reverse acquisition (shares) | 545,505 | |
Warrant valuations | $ (2,366,670) | |
Share options exercised | $ 1,782,438 | $ 5,145,825 |
Share options exercised (shares) | 130,189 | 190,463 |
Warrants exercised | $ 145,174 | $ 1,254,665 |
Warrants exercised (shares) | 12,167 | 44,931 |
Ending balance | $ 97,815,149 | $ 67,916,302 |
Ending balance (shares) | 7,905,727 | 6,843,780 |
Warrants | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance | $ 4,442,145 | $ 2,116,900 |
Beginning balance (shares) | 546,212 | 354,996 |
Issued on acquisition of net assets of Prismic Pharmaceuticals, Inc | $ 1,888,086 | |
Issued on acquisition of net assets of Prismic Pharmaceuticals, Inc (shares) | 67,598 | |
Reverse acquisition | $ 118,875 | |
Reverse acquisition (shares) | 37,313 | |
Warrant valuations | $ 2,366,670 | |
Warrant valuations (shares) | 198,835 | |
Share based payments | $ 294,287 | |
Warrants exercised | $ (50,183) | $ (454,587) |
Warrants exercised (shares) | (12,167) | (44,932) |
Warrants expired | $ (535,014) | |
Warrants expired (shares) | (134,192) | |
Ending balance | $ 5,745,034 | $ 4,442,145 |
Ending balance (shares) | 467,451 | 546,212 |
Share capital - Schedule of cha
Share capital - Schedule of changes in number of warrants outstanding (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Share based compensation and warrant reserve [Abstract] | ||
Warrants outstanding, Opening balance | 546,212 | 354,996 |
Warrants, Granted | 67,598 | 236,148 |
Warrants, Exercised | (12,167) | (44,932) |
Warrants, Expired | (134,192) | |
Warrants outstanding, Closing Balance | 467,451 | 546,212 |
Weighted average exercise price, Warrants outstanding opening balance | $ 9.47 | $ 5.80 |
Weighted average exercise price warrants granted | 10.45 | 16.57 |
Weighted average exercise price warrants exercised | 7.81 | 17.79 |
Weighted average exercise price warrants expired | 7.64 | |
Weighted average exercise price, Warrants outstanding closing balance | $ 10.20 | $ 9.47 |
Share capital - Schedule of fai
Share capital - Schedule of fair value assumptions of warrants (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of warrants [Line Items] | ||
Weighted average share price of warrants | $ 32.16 | |
Expected dividend yield of warrants granted | 0.00% | 0.00% |
Expected life of warrants | 2 years | |
Expected volatility of warrants granted | 100.00% | 100.00% |
Bottom of range | ||
Disclosure of warrants [Line Items] | ||
Weighted average share price of warrants | $ 4.42 | |
Exercise price of warrants granted | $ 2.61 | $ 4.42 |
Risk free interest rate of warrants granted | 1.41% | 1.70% |
Expected life of warrants | 1 year 4 months 20 days | |
Top of range | ||
Disclosure of warrants [Line Items] | ||
Weighted average share price of warrants | $ 18.09 | |
Exercise price of warrants granted | $ 26.73 | $ 26.13 |
Risk free interest rate of warrants granted | 1.52% | 2.17% |
Expected life of warrants | 6 years 6 months 18 days |
Share capital - Schedule of war
Share capital - Schedule of warrants outstanding and exercise price (Details) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 10.20 | $ 9.47 | $ 5.80 |
Number of warrants outstanding | 467,451 | 546,212 | 354,996 |
Warrants by expiry date at November 30, 2020 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 2.61 | ||
Number of warrants outstanding | 16,787 | ||
Warrants by expiry date at September 15, 2022 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 4.42 | $ 4.42 | |
Number of warrants outstanding | 199,005 | 199,005 | |
Warrants by expiry date at August 1, 2021 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 5.43 | ||
Number of warrants outstanding | 4,476 | ||
Warrants by expiry date at September 11, 2023 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 5.43 | ||
Number of warrants outstanding | 22,382 | ||
Warrants by expiry date at January 5, 2020 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 6.03 | $ 6.03 | |
Number of warrants outstanding | 37,313 | 37,313 | |
Warrants by expiry date at July 24, 2023 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 13.07 | ||
Number of warrants outstanding | 3,357 | ||
Warrants by expiry date at May 20, 2023 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 16.08 | ||
Number of warrants outstanding | 7,311 | ||
Warrants by expiry date at May 24, 2022 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 18.09 | $ 18.09 | |
Number of warrants outstanding | 163,535 | 163,733 | |
Warrants by expiry date at May 4, 2025 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 26.73 | ||
Number of warrants outstanding | 3,730 | ||
Warrants by expiry date at May 10, 2025 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 26.73 | ||
Number of warrants outstanding | 1,865 | ||
Warrants by expiry date at May 17, 2025 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 26.73 | ||
Number of warrants outstanding | 3,730 | ||
Warrants by expiry date at May 31, 2025 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 26.73 | ||
Number of warrants outstanding | 1,865 | ||
Warrants by expiry date at January 16, 2026 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 26.73 | ||
Number of warrants outstanding | 1,722 | ||
Warrants by expiry date at January 20, 2026 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 26.73 | ||
Number of warrants outstanding | 373 | ||
Warrants by expiry date at October 20, 2019 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 7.56 | ||
Number of warrants outstanding | 11,970 | ||
Warrants by expiry date at November 1, 2019 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 7.56 | ||
Number of warrants outstanding | 69,240 | ||
Warrants by expiry date at November 14, 2019 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 7.56 | ||
Number of warrants outstanding | 52,532 | ||
Warrants by expiry date at November 21, 2019 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 7.56 | ||
Number of warrants outstanding | 10,263 | ||
Warrants by expiry date at December 12, 2019 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 7.56 | ||
Number of warrants outstanding | 1,084 | ||
Warrants by expiry date at December 29, 2019 | |||
Disclosure of warrants [Line Items] | |||
Exercise price of warrants outstanding | $ 7.56 | ||
Number of warrants outstanding | 1,072 |
Share-based compensation - Sche
Share-based compensation - Schedule of changes in number of share options (Details) - Stock options | 12 Months Ended | |
Dec. 31, 2019Share$ / shares | Dec. 31, 2018Share$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Opening Balance | Share | 485,159 | 206,219 |
Granted | Share | 1,363,322 | 593,781 |
Exercised | Share | (82,094) | (240,214) |
Forfeited | Share | (12,438) | |
Cancelled | Share | (299,006) | (74,627) |
Closing Balance | Share | 1,454,943 | 485,159 |
Exercisable | Share | 1,200,242 | 253,815 |
Weighted average exercise price of share options outstanding in share-based payment arrangement at beginning of period | $ / shares | $ 74.53 | $ 4.44 |
Weighted average exercise price, Granted | $ / shares | 20.68 | 65.80 |
Weighted average exercise price, Exercised | $ / shares | 10.02 | 11.31 |
Weighted average exercise price, Forfeited | $ / shares | 56.28 | |
Weighted average exercise price, Cancelled | $ / shares | 115.80 | 10.05 |
Weighted average exercise price of share options outstanding in share-based payment arrangement at end of period | $ / shares | 21.96 | 74.53 |
Weighted average exercise price, Exercisable | $ / shares | $ 21.24 | $ 19.91 |
Share-based compensation - Sc_2
Share-based compensation - Schedule of fair value assumptions of share options granted (Details) - Stock options | 12 Months Ended | |
Dec. 31, 2019Year$ / shares | Dec. 31, 2018Year$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Expected dividend yield | 0.00% | 0.00% |
Expected life | Year | 5 | 5 |
Annualized volatility | 100.00% | 100.00% |
Bottom of range | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date share price | $ 6.45 | $ 10.05 |
Exercise price | $ 7.17 | $ 10.05 |
Risk free interest rate | 1.24% | 1.97% |
Top of range | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date share price | $ 75.38 | $ 142.71 |
Exercise price | $ 75.38 | $ 148.74 |
Risk free interest rate | 1.90% | 2.41% |
Share-based compensation - Sc_3
Share-based compensation - Schedule of exercise price and weighted average contractual term of share options outstanding and exercisable (Details) - Stock options | 12 Months Ended | ||
Dec. 31, 2019Share$ / shares | Dec. 31, 2018Share$ / shares | Dec. 31, 2017Share$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 21.96 | $ 74.53 | $ 4.44 |
Number of share options outstanding in share-based payment arrangement | Share | 1,454,943 | 485,159 | 206,219 |
Weighted average remaining contractual life of outstanding share options | 4 years 7 months 2 days | 4 years 3 months 25 days | |
Exercise price of exercisable Share options | $ / shares | $ 21.24 | $ 19.91 | |
Number of share options exercisable in share-based payment arrangement | Share | 1,200,242 | 253,815 | |
2.61 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 2.61 | ||
Number of share options outstanding in share-based payment arrangement | Share | 35,065 | ||
Weighted average remaining contractual life of outstanding share options | 3 years 5 months 26 days | ||
Exercise price of exercisable Share options | $ / shares | $ 2.61 | ||
Number of share options exercisable in share-based payment arrangement | Share | 35,065 | ||
4.42 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 4.42 | $ 4.42 | |
Number of share options outstanding in share-based payment arrangement | Share | 99,502 | 149,254 | |
Weighted average remaining contractual life of outstanding share options | 2 years 8 months 15 days | 3 years 8 months 15 days | |
Exercise price of exercisable Share options | $ / shares | $ 4.42 | $ 4.42 | |
Number of share options exercisable in share-based payment arrangement | Share | 99,502 | 149,254 | |
5.03 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 5.03 | ||
Number of share options outstanding in share-based payment arrangement | Share | 2,488 | ||
Weighted average remaining contractual life of outstanding share options | 11 months 23 days | ||
Exercise price of exercisable Share options | $ / shares | $ 5.03 | ||
Number of share options exercisable in share-based payment arrangement | Share | 2,488 | ||
5.43 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 5.43 | ||
Number of share options outstanding in share-based payment arrangement | Share | 16,264 | ||
Weighted average remaining contractual life of outstanding share options | 3 years 5 months 26 days | ||
Exercise price of exercisable Share options | $ / shares | $ 5.43 | ||
Number of share options exercisable in share-based payment arrangement | Share | 16,264 | ||
10.65 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 10.65 | ||
Number of share options outstanding in share-based payment arrangement | Share | 3,730 | ||
Weighted average remaining contractual life of outstanding share options | 3 years 5 months 26 days | ||
Exercise price of exercisable Share options | $ / shares | $ 10.65 | ||
Number of share options exercisable in share-based payment arrangement | Share | 3,730 | ||
13.07 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 13.07 | ||
Number of share options outstanding in share-based payment arrangement | Share | 10,855 | ||
Weighted average remaining contractual life of outstanding share options | 3 years 5 months 26 days | ||
Exercise price of exercisable Share options | $ / shares | $ 13.07 | ||
Number of share options exercisable in share-based payment arrangement | Share | 10,855 | ||
13.47 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 13.47 | ||
Number of share options outstanding in share-based payment arrangement | Share | 1,418 | ||
Weighted average remaining contractual life of outstanding share options | 3 years 5 months 26 days | ||
Exercise price of exercisable Share options | $ / shares | $ 13.47 | ||
Number of share options exercisable in share-based payment arrangement | Share | 1,418 | ||
16.08 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 16.08 | ||
Number of share options outstanding in share-based payment arrangement | Share | 18,409 | ||
Weighted average remaining contractual life of outstanding share options | 3 years 5 months 26 days | ||
Exercise price of exercisable Share options | $ / shares | $ 16.08 | ||
Number of share options exercisable in share-based payment arrangement | Share | 18,409 | ||
17.89 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 17.89 | ||
Number of share options outstanding in share-based payment arrangement | Share | 4,178 | ||
Weighted average remaining contractual life of outstanding share options | 3 years 5 months 26 days | ||
Exercise price of exercisable Share options | $ / shares | $ 17.89 | ||
Number of share options exercisable in share-based payment arrangement | Share | 4,178 | ||
18.09 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 18.09 | $ 18.09 | |
Number of share options outstanding in share-based payment arrangement | Share | 37,313 | 42,289 | |
Weighted average remaining contractual life of outstanding share options | 3 years 4 months 2 days | 4 years 4 months 6 days | |
Exercise price of exercisable Share options | $ / shares | $ 18.09 | $ 18.09 | |
Number of share options exercisable in share-based payment arrangement | Share | 37,313 | 42,289 | |
20.10 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 20.10 | $ 20.10 | |
Number of share options outstanding in share-based payment arrangement | Share | 493,363 | 33,169 | |
Weighted average remaining contractual life of outstanding share options | 4 years 8 months 19 days | 4 years 3 months 7 days | |
Exercise price of exercisable Share options | $ / shares | $ 20.10 | $ 20.10 | |
Number of share options exercisable in share-based payment arrangement | Share | 493,363 | 16,584 | |
21.11 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 21.11 | ||
Number of share options outstanding in share-based payment arrangement | Share | 12,438 | ||
Weighted average remaining contractual life of outstanding share options | 4 years 8 months 1 day | ||
Exercise price of exercisable Share options | $ / shares | $ 21.11 | ||
Number of share options exercisable in share-based payment arrangement | Share | 12,438 | ||
24.12 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 24.12 | ||
Number of share options outstanding in share-based payment arrangement | Share | 9,950 | ||
Weighted average remaining contractual life of outstanding share options | 4 years 7 months 2 days | ||
Exercise price of exercisable Share options | $ / shares | $ 24.12 | ||
Number of share options exercisable in share-based payment arrangement | Share | 6,219 | ||
26.13 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 26.13 | $ 26.13 | |
Number of share options outstanding in share-based payment arrangement | Share | 14,925 | 14,925 | |
Weighted average remaining contractual life of outstanding share options | 3 years 7 months 13 days | 4 years 7 months 13 days | |
Exercise price of exercisable Share options | $ / shares | $ 26.13 | $ 26.13 | |
Number of share options exercisable in share-based payment arrangement | Share | 14,925 | 14,925 | |
40.20 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 40.20 | ||
Number of share options outstanding in share-based payment arrangement | Share | 29,851 | ||
Weighted average remaining contractual life of outstanding share options | 4 years 5 months 12 days | ||
Exercise price of exercisable Share options | $ / shares | $ 40.20 | ||
Number of share options exercisable in share-based payment arrangement | Share | 22,388 | ||
44.22 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 44.22 | ||
Number of share options outstanding in share-based payment arrangement | Share | 2,488 | ||
Weighted average remaining contractual life of outstanding share options | 3 years 4 months 28 days | ||
Exercise price of exercisable Share options | $ / shares | $ 44.22 | ||
Number of share options exercisable in share-based payment arrangement | Share | 2,488 | ||
47.24 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 47.24 | ||
Number of share options outstanding in share-based payment arrangement | Share | 1,493 | ||
Weighted average remaining contractual life of outstanding share options | 4 years 4 months 13 days | ||
Exercise price of exercisable Share options | $ / shares | $ 47.24 | ||
Number of share options exercisable in share-based payment arrangement | Share | 1,493 | ||
50.25 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 50.25 | ||
Number of share options outstanding in share-based payment arrangement | Share | 227,861 | ||
Weighted average remaining contractual life of outstanding share options | 5 years 1 month 2 days | ||
Exercise price of exercisable Share options | $ / shares | $ 50.25 | ||
Number of share options exercisable in share-based payment arrangement | Share | 129,353 | ||
52.26 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 52.26 | ||
Number of share options outstanding in share-based payment arrangement | Share | 498 | ||
Weighted average remaining contractual life of outstanding share options | 4 years 2 months 15 days | ||
Exercise price of exercisable Share options | $ / shares | $ 52.26 | ||
Number of share options exercisable in share-based payment arrangement | Share | 498 | ||
55.28 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 55.28 | ||
Number of share options outstanding in share-based payment arrangement | Share | 498 | ||
Weighted average remaining contractual life of outstanding share options | 4 years 1 month 13 days | ||
Exercise price of exercisable Share options | $ / shares | $ 55.28 | ||
Number of share options exercisable in share-based payment arrangement | Share | 498 | ||
56.28 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 56.28 | ||
Number of share options outstanding in share-based payment arrangement | Share | 12,438 | ||
Weighted average remaining contractual life of outstanding share options | 4 years 10 months 28 days | ||
Exercise price of exercisable Share options | $ / shares | $ 56.28 | ||
Number of share options exercisable in share-based payment arrangement | Share | 0 | ||
59.30 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 59.30 | $ 59.30 | |
Number of share options outstanding in share-based payment arrangement | Share | 498 | 498 | |
Weighted average remaining contractual life of outstanding share options | 3 years 11 months 15 days | 4 years 11 months 15 days | |
Exercise price of exercisable Share options | $ / shares | $ 59.30 | $ 59.30 | |
Number of share options exercisable in share-based payment arrangement | Share | 498 | 498 | |
7.17 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 7.17 | ||
Number of share options outstanding in share-based payment arrangement | Share | 199,005 | ||
Weighted average remaining contractual life of outstanding share options | 4 years 9 months 29 days | ||
Exercise price of exercisable Share options | $ / shares | $ 7.17 | ||
Number of share options exercisable in share-based payment arrangement | Share | 199,005 | ||
7.50 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 7.50 | ||
Number of share options outstanding in share-based payment arrangement | Share | 0 | ||
Exercise price of exercisable Share options | $ / shares | $ 7.50 | ||
Number of share options exercisable in share-based payment arrangement | Share | 0 | ||
75.38 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 75.38 | ||
Number of share options outstanding in share-based payment arrangement | Share | 498 | ||
Weighted average remaining contractual life of outstanding share options | 4 years 14 days | ||
Exercise price of exercisable Share options | $ / shares | $ 75.38 | ||
Number of share options exercisable in share-based payment arrangement | Share | 498 | ||
7.63 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 7.63 | ||
Number of share options outstanding in share-based payment arrangement | Share | 203,750 | ||
Weighted average remaining contractual life of outstanding share options | 5 years 4 months 2 days | ||
Exercise price of exercisable Share options | $ / shares | $ 7.63 | ||
Number of share options exercisable in share-based payment arrangement | Share | 58,750 | ||
86.43 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 86.43 | $ 86.43 | |
Number of share options outstanding in share-based payment arrangement | Share | 1,244 | 1,244 | |
Weighted average remaining contractual life of outstanding share options | 3 years 10 months 17 days | 4 years 10 months 17 days | |
Exercise price of exercisable Share options | $ / shares | $ 86.43 | $ 86.43 | |
Number of share options exercisable in share-based payment arrangement | Share | 1,244 | 1,244 | |
88.44 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 88.44 | $ 88.44 | |
Number of share options outstanding in share-based payment arrangement | Share | 14,925 | 14,925 | |
Weighted average remaining contractual life of outstanding share options | 3 years 10 months 13 days | 4 years 10 months 13 days | |
Exercise price of exercisable Share options | $ / shares | $ 88.44 | $ 88.44 | |
Number of share options exercisable in share-based payment arrangement | Share | 14,925 | 14,925 | |
120.60 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 120.60 | $ 120.60 | |
Number of share options outstanding in share-based payment arrangement | Share | 9,950 | 9,950 | |
Weighted average remaining contractual life of outstanding share options | 3 years 8 months 15 days | 4 years 8 months 15 days | |
Exercise price of exercisable Share options | $ / shares | $ 120.60 | $ 120.60 | |
Number of share options exercisable in share-based payment arrangement | Share | 9,950 | 9,950 | |
142.71 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 142.71 | $ 142.71 | |
Number of share options outstanding in share-based payment arrangement | Share | 4,974 | 4,975 | |
Weighted average remaining contractual life of outstanding share options | 3 years 8 months 26 days | 4 years 8 months 26 days | |
Exercise price of exercisable Share options | $ / shares | $ 142.71 | $ 142.71 | |
Number of share options exercisable in share-based payment arrangement | Share | 4,975 | 1,658 | |
148.74 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price of options outstanding | $ / shares | $ 148.74 | ||
Number of share options outstanding in share-based payment arrangement | Share | 199,004 | ||
Weighted average remaining contractual life of outstanding share options | 4 years 8 months 12 days | ||
Exercise price of exercisable Share options | $ / shares | $ 148.74 | ||
Number of share options exercisable in share-based payment arrangement | Share | 0 |
Loss per share (Details)
Loss per share (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per share [line items] | ||
Dilutive effect of convertible instruments on number of ordinary shares | 1,922,394 | 1,031,371 |
Warrants | ||
Earnings per share [line items] | ||
Dilutive effect of convertible instruments on number of ordinary shares | 467,451 | 546,212 |
Stock options | ||
Earnings per share [line items] | ||
Dilutive effect of share options on number of ordinary shares | 1,454,943 | 485,159 |
General and administrative (Det
General and administrative (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Selling, general and administrative expense [abstract] | ||
Professional fees | $ 3,730,556 | $ 1,955,253 |
Stock promotion | 2,902,453 | 2,803,588 |
Salaries, wages and benefits | 2,267,308 | 1,740,720 |
Consulting fees | 2,288,129 | 2,037,049 |
General office, travel and adminsitration expenditures | 2,172,824 | 726,509 |
Repairs, maintenance and utilities | 924,945 | 1,360,477 |
Shareholder and public company costs | 440,746 | 124,973 |
Listing expense | 0 | 7,991,791 |
Foreign exchange loss | 84,568 | 0 |
General and administrative | $ 14,811,529 | $ 18,740,360 |
Income taxes - Schedule of prov
Income taxes - Schedule of provision for income taxes (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income taxes paid (refund) [abstract] | ||
Loss before income taxes | $ (52,013,186) | $ (22,710,624) |
Statutory federal and provincial tax rate | 26.50% | 26.50% |
Income tax recovery at the statutory tax rate | $ (13,783,494) | $ (6,018,315) |
Permanent differences | 7,797,290 | 2,706,000 |
Other adjustments | 6,334,913 | 0 |
Change in tax benefits not recognized | (348,709) | 3,312,315 |
Total Income tax expense | $ 0 | $ 0 |
Income taxes - Schedule of defe
Income taxes - Schedule of deferred tax assets (liabilities) (Details) - CAD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Income taxes paid (refund) [abstract] | ||
Other investments | $ (168,092) | $ (1,334,000) |
Capital losses carried forward | 168,092 | 1,334,000 |
Deferred tax liabilities not recognized | $ 0 | $ 0 |
Income taxes - Schedule of temp
Income taxes - Schedule of temporary differences for which deferred tax assets not recognised (Details) - CAD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Income taxes paid (refund) [abstract] | ||
Property, plant and equipment | $ 1,054,843 | |
Other investments | 1,287,743 | |
Share issuance costs | 1,169,642 | $ 3,772,000 |
Non-capital losses carried forward - Canada | 27,518,609 | 29,272,000 |
Net operating losses carried forward - US | 274,454 | |
Capital losses carried forward | 350,465 | |
Unrealized fair value on biological assets and inventory | 1,098,497 | |
Deductible temporary differences for which no deferred tax asset is recognised | $ 32,754,253 | $ 33,044,000 |
Income taxes - Schedule of non-
Income taxes - Schedule of non-capital loss carryforwards (Details) | Dec. 31, 2019CAD ($) |
Income taxes paid (refund) [abstract] | |
2038 | $ 12,492,296 |
2039 | 15,026,313 |
Non-capital income tax losses expire | $ 27,518,609 |
Commitments and contingencies -
Commitments and contingencies - Schedule of quantities of cannabis available to supply by fiscal period (Details) - Pharmadrug Production GMBH - Supply agreement - FV Pharma Inc | 12 Months Ended |
Dec. 31, 2019kg | |
Disclosure of contingent liabilities [line items] | |
2020 | 350 |
2021 | 650 |
2022 | 1,000 |
2023 | 1,000 |
2024 | 1,000 |
Related party transactions - Sc
Related party transactions - Schedule of key management personnel compensation (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [abstract] | ||
Salaries, benefits, bonuses and consulting fees | $ 4,836,192 | $ 1,814,115 |
Share-based payments | 12,476,385 | 3,215,401 |
Total | $ 17,312,577 | $ 5,029,516 |