Stockholders' Deficiency | 11. Stockholders’ Deficiency Authorized stock As at February 28, 2019, the Company was authorized to issue 500,000,000 (August 31, 2018 - 300,000,000) shares of common stock at a par value of US$0.001. On October 9, 2018, the Company’s shareholders and directors approved a change of the Company’s name from Tropic International Inc. to Notox Technologies Corp. and an increase in the Company’s authorized common stock to 500,000,000 shares. The name change and authorized common stock increase were effected on November 19, 2018. At February 28, 2019, the Company had 57,532,843 shares of common stock legally issued and outstanding (August 31, 2018 - 57,532,843). Share issuances During the six months ended February 28, 2018, the Company completed the following common stock transactions: ● On September 21, 2017, the Company closed a US dollar financing pursuant to which the Company issued 630,000 units at US$1.00 per unit for gross proceeds of $830,674, with each unit consisting of one share of the Company’s common stock and one warrant to purchase one share of common stock exercisable at a price of US$1.40 per share until September 7, 2019. $491,041 was allocated to common stock and $339,633 was allocated to stock purchase warrants. The Company paid cash finder’s fees of $6,435 and issued 5,000 finder’s stock purchase warrants exercisable at US$1.40 per warrant share until July 17, 2019, valued at $2,581 and credited to stock purchase warrants. ● On September 21, 2017, the Company issued 10,000 shares of common stock at $0.80 per share for gross proceeds of $8,000 pursuant to the exercise of warrants during the year ended August 31, 2017. $2,049 of the gross proceeds received that was allocated to these warrants has been deducted from additional paid-in capital. There were no share issuances during the six months ended February 28, 2019. Shares to be issued Common stock to be issued of 98,750 shares ($119,890) is comprised of 18,750 shares to be issued from the exercise of warrants (as explained below), and 80,000 shares to be issued from private placements as detailed below: ● On February 25, 2019, the Company has to issue 15,000 shares of common stock through a private placement with a fair value of $19,311 at a rate of U$1.29 per share. ● On February 28, 2019, the Company has to issue 65,000 shares of common stock through a private placement with a fair value of $85,579 at a rate of $1.32 per share. Warrant exercises During the six months ended February 28, 2019, the Company completed the following warrants transactions: ● On November 27, 2018, the Company issued 12,500 shares of common stock at $0.80 per share for gross proceeds of $10,000 pursuant to the exercise of warrants. ● As of February 28, 2019, the Company has to issue.6,250 shares of common stock at $0.80 per share for gross proceeds of $5,000 pursuant to the exercise of warrants during the period ended February 28, 2019. Stock Purchase Warrants The continuity of Canadian dollar denominated stock purchase warrants for the six months ended February 28, 2019 is as follows: Expiry Date Price August 31, 2017 Issued Expired August 31, 2018 Issued Expired February 28, 2019 October 31, 2018 $ 0.80 130,000 — (12,500 ) 117,500 — (117,500 ) — At February 28, 2019, the weighted-average remaining contractual life of Canadian dollar warrants outstanding was 0.00 years (August 31, 2018 - 0.17). The continuity of US dollar denominated stock purchase warrants for the six months ended February 28, 2019 is as follows: Expiry Date Price August 31, 2017 Issued August 31, 2018 Issued Expired February 28, 2019 September 30, 2018 – Finder US$1.40 15,000 — 15,000 — (15,000 ) — October 31, 2018 US$0.80 220,770 — 220,770 — (220,770 ) — November 2, 2018 US$1.40 400,000 — 400,000 — (400,000 ) — July 17, 2019 – Finder US$1.40 — 5,000 5,000 — — 5,000 September 7, 2019 US$1.40 — 630,000 630,000 — — 630,000 635,770 635,000 1,270,770 — (635,770 ) 635,000 At February 28, 2019, the weighted-average remaining contractual life of US dollar warrants outstanding was 0.52 years (August 31, 2018 – 0.59 years). The Company used the Black-Scholes Option Pricing Model to determine the fair values of unit warrants and finder’s warrants issued pursuant to private placements during the years ended August 31, 2018 and 2017 with the following assumptions: February 28, 2019 August 31, 2018 Expected dividend yield 0.00 % 0.00 % Risk-free interest rate 1.78 % 1.47% - 2.04 % Expected stock price volatility 100.00 % 100.00 % Expected life of warrants 0.63 – 0.77 years 0.08 – 2 years |