WARRANTS

12 Months Ended

Feb. 29, 2012

Notes to Financial Statements

NOTE 7 - WARRANTS

On November 14, 2011, the Company entered into consulting agreement with Burnham Hill Advisors and warrants were issued to purchase 220,000 shares of common stock at $0.68 per share. The fair value of these warrants was determined to be $149,999, as calculated using the Black-Scholes model. Assumption used in the Black-Scholes model included: (1) a discount rate of 0.91%; (2) an expected term of 5 years; (3) an expected volatility of 403%; and (4) zero expected dividends

During the year ended February 29, 2012, the Company granted 1,497,214 warrants together with shares of common stock issued on January 31, 2012 exercisable at $0.91 per share and expiring on January 31, 2017. The Company also granted 216,250 warrants on February 27, 2012 exercisable at $1.40 per share and expiring on February 27, 2016.

Immediately prior to the Share Exchange, PVSO issued 350,000 warrants exercisable at $1.40 per share.

The following table summarizes common stock warrants issued and outstanding:

	Warrants		Weighted average exercise price		Aggregate intrinsic value		Weighted average remaining contractual life (years)
Outstanding at February 28, 2011		-	$	-	$	-		-
Granted by MetaStat		1,933,372		0.94		1,933,372		4.80
Granted by PVSO		350,000		1.40		350,000		5.00
Outstanding at February 28, 2012		2,283,372	$	1.01	$	2,283,372		4.83

Warrants exercisable at February 29, 2012 are:

Exercise prices		Number of shares		Weighted average remaining life (years)		Exercisable number of shares
$	0.68		220,000		4.71		220,000
$	0.91		1,497,122		4.93		1,497,122
$	1.40		216,250		4.00		216,250
$	1.40		350,000		5.00		350,000