On July 12, 2017, the Company closed its previously announced prospectus offering (the "Offering") of convertible unsecured subordinated debentures of the Corporation (the "Debentures") for gross aggregate proceeds of CAD$6,838,000 ($5,472,000). Pursuant to the Offering, the Corporation issued an aggregate principal amount of CAD$6,838,000 ($5,472,000) of Debentures at a price of CAD$1,000 ($800) per Debenture. The Debentures had a maturity date of June 30, 2020 and interest at annual rate of 8% payable semi-annually on the last day of June and December of each year, commencing on December 31, 2017. The interest may be paid in common shares at the option of the Corporation. The Debentures were convertible at the option of the holders at any time prior to the close of business on the earlier of June 30, 2020 and the business day immediately preceding the date specified by the Corporation for redemption of Debentures. The conversion price was CAD$1.35 ($1.08) (the "Conversion Price") per common share of the Corporation ("Share"), being a conversion rate of approximately 740 Shares per CAD$1,000 ($800) principal amount of Debentures, subject to adjustment in certain events.

On August 8, 2017, the Company closed a second tranche of its prospectus Offering of convertible unsecured subordinated debentures of the Corporation for which a first closing took place on July 12, pursuant to which it had raised additional gross proceeds of CAD$762,000 ($610,000).

Together with the principal amount of CAD$6,838,000 ($5,472,000) of Debentures issued on July 12, 2017, the Corporation issued a total aggregate principal amount of CAD$7,600,000 ($6,082,000) of Debentures at a price of CAD$1,000 ($800) per Debenture.

On June 25, 2020, the debentureholders approved the extension of the maturity date of the convertible debentures from June 30, 2020 to June 30, 2022 and the conversion price was reduced from CAD$1.35 ($1.08) to CAD$0.50 ($0.40). This extension was accounted for as an extinguishment and the debentures were re-measured at fair value on June 30, 2020.

The components of the convertible debentures are as follows:

		March 31, 2022			December 31, 2021

Face value of the convertible debentures	$	4,003		$	3,977
Transaction costs		(75	)		(74	)
Accretion		399			344
Convertible debentures	$	4,327		$	4,247

The convertible debentures have been recorded as a liability. The accretion expense for the three-month period ended March 31, 2022 amounts to CAD$62,000 ($49,000), compared to CAD$73,000 ($58,000) for the comparative period in 2021.

During the three-month period ended March 31, 2022, CAD$40,000 ($32,000) of convertible debentures were converted into 80,000 common shares at the option of the holders, resulting in an increase in additional paid-in capital of $31 thousand.

During the three-month period ended March 31, 2021, CAD$240,000 ($191,000) of convertible debentures were converted into 480,000 common shares at the option of the holders, resulting in an increase in additional paid-in capital of $178 thousand.

The interest accrued on the convertible debentures for the three-month period ended March 31, 2022 amounts to CAD$110 thousand ($87 thousand) and is recorded in financing and interest expense. The interest on the convertible debentures amounted to CAD$146 thousand ($115 thousand) for the three-month period ended March 31, 2021.