On December 9^th, 2019, January 08^th, 2020 and January 17, 2020, the Company issued warrants to EMA Financial, Peak One Opportunity, and Crown Bridge in conjunction with their convertible notes (see Note 8). Classified as equity, these detachable warrants issued in a bundled transaction with convertible notes are accounted for separately as additional paid-in capital for the portion of the proceeds allocated to them. The allocation of the sales proceeds between the base instrument of convertible notes and the warrants are allocated based on the relative fair values of the base instrument of convertible notes and the warrants following the guidance in ASC 470-20-25-2.

The fair value of the stock warrants granted to EMA Financial was estimated at $106,540 on the date granted using the Black-Scholes pricing model, with the following assumption used for the valuation: exercise price of $12 per share, average risk-free interest rate of 0.89%, expected dividend yield of zero, remaining contractual life of 4.89 years, and an average expected volatility of 58.11%.

The fair value of the stock warrants granted to Peak One was estimated at $39,515 on the date granted using the Black-Scholes pricing model, with the following assumption used for the valuation: exercise price of $10 per share, average risk-free interest rate of 0.89%, expected dividend yield of zero, remaining contractual life of 4.78 years, and an average expected volatility of 57.51%.

The fair value of the stock warrants granted to Crown Bridge was estimated at $17,443 on the date granted using the Black-Scholes pricing model, with the following assumption used for the valuation: exercise price of $12.5 per share, average risk-free interest rate of 0.89%, expected dividend yield of zero, remaining contractual life of 4.86, and an average expected volatility of 57.97%.

A summary of the status of the Company’s warrants as of February 29,2020 is presented below:

	Number of warrants
Warrants as at August 31,2019		—
Warrants granted		44,680
Exercised, forfeited or expired		—
Outstanding at February 29,2020		44,680
Exercisable at February 29,2020		10,000

The following table summarizes information about the Company’s warrants as of February 29,2020:

Warrants outstanding							Warrants exercisable

		Exercise price	Number outstanding	Weighted average remaining contractual life (in years)		Weighted average exercise price	Number exercisable		Weighted average exercise price

EMA Financial	$	12.50	30,000	3.28	$	8.39	—	$	—
Peak One	$	10.00	10,000	1.07	$	2.24	10,000	$	10.00
Crown Bridge	$	12.50	4,680	0.51	$	1.31	—	$	—
Total			44,680	4.86	$	11.94	10,000	$	10.00