Note 5 - Capital Stock and Warrants

6 Months Ended

Dec. 31, 2015

Notes

Note 5 - Capital Stock and Warrants

Note 5 - Capital Stock and Warrants

Authorized

The total authorized capital is as follows:

• 300,000,000 common shares with a par value of $0.001 per common share; and

• 10,000,000 preferred shares with a par value of $0.001 per preferred share

Issued and outstanding

On June 30, 2014, the Company reached an agreement with arm’s-length creditors to settle indebtedness in the aggregate amount of $226,000 by issuing 48,800 common shares, including 25,466 common shares at a price of $7.50 per share and 23,334 common shares at a price of $1.50 per share.

On September 30, 2014, the Company issued 34,889 common shares to employees of the Company, at a price of $7.50 per share, in settlement of arrears compensation obligations of $261,665.

On October 17, 2014, the Company issued 6,659,487 common shares, at a price of $0.1875 per share, in settlement of a secured loan facility, which included any unpaid and accrued interest, totaling $1,248,654. In conjunction with the issuance of these common shares, the Company incurred $40,400 in share issuance costs.

On December 31, 2014, the Company issued 11,333 common shares to employees of the Company, at a price of $7.50 per share, in settlement of arrears compensation obligations of $85,000.

For the above share issuances, the shares were not registered under the Securities Act of 1933 in reliance upon the exemptions from registration contained in Regulation S of the Securities Act of 1933. No underwriters were used, nor were any brokerage commissions paid in connection with the above share issuances.

Warrants

As at December 31, 2015, the aggregate weighted average intrinsic value of 13,333 warrants outstanding was $0, and the weighted average grant date fair value of each warrant outstanding was CAD $11.25. The 13,333 warrants expire on August 4, 2016.

Stock Options

On November 14, 2014, the vested and non-vested portion of the 400,000 stock options granted to purchase common shares by directors, officers and employees were cancelled or forfeited.

On February 17, 2015, the Company granted a total of 1,182,667 stock options to purchase common shares to directors, officers and an employee of the Company, at an exercise price of $0.1875 per share and for a term of 5 years.

Stock based compensation expense, resulting from the vesting of stock options, for the three months ended December 31, 2015 was $ 15,240 (2014 - $ 69,672), which is included in operation and administration expense on the statement of operations and comprehensive loss.

Stock based compensation expense, resulting from the vesting of stock options, for the six months ended December 31, 2015 was $33,752 (2014 - $115,747), which is included in operation and administration expense on the statement of operations and comprehensive loss.

As at December 31, 2015 there were 1,229,334 stock options outstanding, exercisable at a weighted average exercise price of $0.61 per share, and expiring as follows: 46,667 options, exercisable at $11.25 per share, expiring on March 31, 2016; and, 1,182,667 options, exercisable at $0.1875 per share, expiring on February 17, 2020.