Note 11 - Capital Stock

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

11. Capital stock

The authorized capital stock of the Company is as follows:

An unlimited number of Preferred Shares;

An unlimited number of Subordinate Voting Shares having

one

vote per share; and

An unlimited number of Multiple Voting Shares having

20

votes per share, convertible at any time into Subordinate Voting Shares at a rate of

one

Subordinate Voting Share for each Multiple Voting Share outstanding.

The following table provides a summary of total capital stock issued and outstanding:

	Subordinate Voting Shares				Multiple Voting Shares				Total Common Shares
	Number		Amount		Number		Amount		Number		Amount
Balance, December 31, 2018		34,654,353	$	148,559		1,325,694	$	148		35,980,047	$	148,707

Pursuant to the amended management services agreement with the Company dated and effective as of the

1st

day of

June, 2015,

the Company agreed to make payments to a company (“FC Co”) indirectly owned by its Founder and Chairman that are contingent upon an arm’s length sale of control of the Company or upon a distribution of the Company’s assets to its shareholders. The payment amounts will be determined with reference to the consideration per Subordinate Voting Share received or deemed received by shareholders upon an arm’s length sale or upon a distribution of assets. The right to receive the payments

may

be transferred to person(s) who are

not

at arm’s length to FC Co. The agreement provides for FC Co to receive the following

two

payments. The

first

payment is an amount equal to

5%

of the product of: (i) the total number of Subordinate and Multiple Voting Shares outstanding on a fully diluted basis at the time of the sale or distribution; and (ii) the per share consideration received or deemed received by holders of Subordinate Voting Shares minus a base price of

C$2.351.

The

second

payment is an amount equal to

5%

of the product of: (i) the total number of Subordinate and Multiple Voting Shares outstanding on a fully diluted basis at the time of the sale or distribution; and (ii) the per share consideration received or deemed received by holders of Subordinate Voting Shares minus a base price of

C$4.578.

Assuming an arm’s length sale of control of the Company had occurred on

December 31, 2018,

the aggregate amount required to be paid to FC Co, based on a market price of

C$93.69

(being the closing price per Subordinate Voting Share on the Toronto Stock Exchange on

December 31, 2018),

would have been

US$248,756.