SHAREHOLDERS’ EQUITY

12 Months Ended

Dec. 31, 2017

Disclosure of Shareholder's Equity [Abstract]

Disclosure of share-based payment arrangements [text block]

13.

SHAREHOLDERS’ EQUITY

Authorized share capital

Unlimited common shares, without par value.

There is no other class of shares in the Company.

ii.

Share capital

The number of common shares issued and fully paid as at December 31, 2017 is 160,253,501. There are no shares issued but not fully paid.

iii.

Stock options, RSUs, DSUs and share-based payments reserve

On June 21, 2016, the Company, through its Board of Directors and shareholders, adopted a long-term equity incentive plan (the “Plan”) which, among other things, allows for the maximum number of shares that may be reserved for issuance under the Plan to be 10% of the Company’s issued and outstanding shares at the time of the grant. The Board of Directors has the authority and discretion to grant stock option, RSU and DSU awards within the limits identified in the Plan, which includes provisions limiting the issuance of options to qualified persons and employees of the Company to maximums identified in the Plan. As at December 31, 2017, the aggregate maximum number of shares pursuant to options granted under the Plan will not exceed 16,025,350 shares, and there were 11,896,685 shares available to be issued under the Plan. All stock options are settled by the issuance of common shares.

The following table summarizes information about the stock options outstanding and exercisable:

	December 31, 2017				December 31, 2016
	Number of options		Weighted average exercise price		Number of options		Weighted average exercise price
Balance at beginning of year		3,020,000	$	4.68		3,100,000	$	4.58
Granted during the year		1,110,000		3.69		200,000		6.66
Exercised during the year		(355,000)		4.44		(130,000)		3.72
Expired during the year		(135,000)		4.84		(150,000)		6.13
Balance at end of the year		3,640,000	$	4.40		3,020,000	$	4.68
Options exercisable at the end of the year		2,530,000	$	4.70		2,920,000	$	4.65

The fair values of the stock options granted have been estimated on the date of grant using the Black-Scholes option pricing model. The assumptions are presented below. Expected volatility is calculated by reference to the weekly closing share price for a period that reflects the expected life of the options. The 100,000 stock options issued on February 6, 2017 vested 1/3 immediately. The remaining 1/3 vest on February 6, 2018 and 1/3 on February 6, 2019. The 1,010,000 stock options issued on December 22, 2017 vest 1/3 on December 22, 2018, 1/3 on December 22, 2019, and 1/3 on December 22, 2020.

	December 31,	December 31,
	2017	2016
Exercise price	$3.48 - $5.86	$6.35 - $6.96
Expected volatility	31.03% - 31.14%	29.27% - 34.06%
Expected option life	5 years	2.5 - 5 years
Contractual option life	5 years	5 years
Expected forfeiture	none	none
Expected dividend yield	0%	0%
Risk-free interest rate	1.11% - 1.82%	0.58% - 0.66%

During the year ended December 31, 2017, 355,000 (2016 – 130,000) stock options were exercised for proceeds of $1,577 (2016 - $483). The aggregate market price of the common shares on the exercise dates was $2,316 (2016 - $837).

The following tables reflect the number of stock options outstanding, the weighted average of options outstanding, and the exercise price of stock options outstanding at December 31, 2017. The Black-Scholes values are measured at the grant date.

At December 31, 2017
	Black-Scholes		Number of		Number of		Exercise
Expiry Date	Value		Options		Exercisable Options		Price
March 10, 2018	$	129		100,000		100,000		4.06
March 17, 2018		64		50,000		50,000		4.11
May 13, 2018		157		100,000		100,000		5.00
July 2, 2018		803		500,000		500,000		5.28
February 13, 2019		206		150,000		150,000		5.29
April 13, 2020		1,242		785,000		785,000		4.66
October 14, 2020		133		100,000		100,000		4.21
December 10, 2020		614		545,000		545,000		3.57
June 30, 2021		120		100,000		66,667		6.35
November 3, 2021		214		100,000		100,000		6.96
February 5, 2022		171		100,000		33,333		5.86
December 21, 2022		1,075		1,010,000		-		3.48
	$	4,928		3,640,000		2,530,000	$	4.40

The weighted average remaining contractual life of the options outstanding at December 31, 2017 is 2.85 years (2016 – 2.73 years).

The restricted and deferred share unit plans are full value phantom shares that mirror the value of the Company’s publicly traded common shares. Grants under the RSU and DSU plan are made on a discretionary basis to qualified persons and employees of the Company subject to the Board of Directors’ approval. Under the RSU and DSU plan, RSUs vest according to the terms set out in the award agreement which are determined on an individual basis at the discretion of the Board of Directors. Vesting under the RSU and DSU plan is subject to special rules for death, disability and change in control. The awards can be settled through issuance of common shares or paid in cash, at the discretion of the Board of Directors. These awards are accounted for as equity settled RSUs.

The fair value of each RSU issued is determined at the closing share price on the grant date.

The following table shows the RSU awards which have been granted and settled during the year:

	December 31, 2017				December 31, 2016
RSU	Number of units		Weighted average value		Number of units		Weighted average value
Balance at beginning of year		320,000	$	6.48		-	$	-
Awards and payouts during the year (net):
RSUs awarded		265,000		3.52		330,000		6.47
RSUs vested and common shares issued		(79,668)		6.45		(10,000)		6.17
RSUs forfeited		(16,667)		6.49		-		-
Balance at end of the year		488,665	$	4.88		320,000	$	6.48

As at December 31, 2017, no DSU awards have been granted.

The share-based payments recognized as an expense for the years ended December 31, 2017 and 2016 are as follows:

	Year ended		Year ended
	December 31, 2017		December 31, 2016
Expense recognized in the year for share-based payments	$	1,582	$	469

The share-based payment expense for the years ended December 31, 2017 and 2016 is included in selling, general and administrative expenses.

iv.	Earnings per share

The following table sets forth the computation of basic and diluted earnings per share:

	Year ended		Year ended
	December 31, 2017		December 31, 2016
Numerator
Net income for the year	$	17,152	$	4,798

Denominator
For basic - weighted average number of shares outstanding		160,189,858		159,743,601
Effect of dilutive securities		834,496		630,697
For diluted - adjusted weighted average number of shares outstanding		161,024,354		160,374,298

Earnings Per Share
Basic	$	0.11	$	0.03
Diluted	$	0.11	$	0.03

For the year ended December 31, 2017, 2,805,504 stock options were not included in the calculation of diluted earnings per share since to include them would be anti-dilutive (2016 – 2,389,303 stock options).