Warrants

6 Months Ended

Jun. 30, 2022

Warrants and Rights Note Disclosure [Abstract]

Warrants

9. WARRANTS

As part of the financing of the Company’s Notes, as well as other financing arrangements, the Company issued warrants to related parties, as well as unrelated third parties, which allow the holders to purchase Subordinate Voting Shares at an exercise price determined at the time of issuance.

The following table summarizes the number of warrants outstanding as of June 30, 2022 and December 31, 2021:

	Liability Classified							Equity Classified
	Number of Shares			Weighted Average Exercise Price (C$)		Weighted Average Remaining Contractual Life		Number of Shares			Weighted Average Exercise Price (USD)		Weighted Average Remaining Contractual Life
Balance as of December 31, 2021		2,097,931	C$		18.26		2.42		1,737,347	$		31.83		4.38
Balance as of June 30, 2022		2,097,931	C$		18.26		1.92		1,737,347	$		31.83		3.88

(a) Liability Classified Warrants Outstanding

The following table summarizes the fair value of the liability classified warrants at June 30, 2022 and December 31, 2021:

				Fair Value
Warrant Liability	Strike Price	Warrants Outstanding		June 30, 2022		December 31, 2021		Change
				(in thousands)
Bridge Financing Warrants Issued April 2019	C$22.90		100,723	$	1	$	676	$	(675	)
Private Placement Financing Warrants Issued May 2019	C$19.39		1,606,533		2,049		18,527		(16,478	)
Modification Warrants Issued November 2019	C$12.04		316,947		858		4,603		(3,745	)
Additional Modification Warrants Issued May 2020	C$14.03		73,728		197		1,071		(874	)
Totals			2,097,931	$	3,105	$	24,877	$	(21,772	)

During the three and six months ended June 30, 2022 and 2021, the Company recorded a gain of $13,843 thousand and $21,772 thousand, and a loss of $2,160 thousand and $8,011 thousand, respectively, on the change in the fair value of the warrant liability within other income (expense) on the unaudited interim condensed consolidated statements of operations.

The following table summarizes the significant assumptions used in determining the fair value of the warrant liability as of each reporting date (see Note 14 - Fair Value Measurements for additional details):

	June 30,	December 31,
Significant Assumptions	2022	2021
Volatility	62.23% - 68.30%	59.95% - 74.04%
Remaining Term	0.28 - 2.89 years	0.78 - 3.39 years
Risk Free Rate	3.09% - 3.14%	0.91% - 1.06%

9. WARRANTS (Continued)

(b) Equity Classified Warrants Outstanding

The following table summarizes the fair value of the equity classified warrants at June 30, 2022 and December 31, 2021:

					Fair Value
			Warrants		June 30,		December 31,
Warrants Included in Contributed Surplus	Strike Price		Outstanding		2022		2021
					(in thousands)
Mortgage Warrants Issued June 2020	$	9.10		35,000	$	181	$	181
Private Placement Refinance Warrants Issued April 2021	$	32.68		1,459,044		22,259		22,259
Private Placement Refinance Warrants Issued October 2021	$	30.02		243,303		2,616		2,616
Totals				1,737,347	$	25,056	$	25,056

The equity warrants were valued as of the date of issuance using a Black Scholes Option Pricing model. The following table summarizes the significant assumptions used in determining the fair value of the warrants as of each respective issuance date:

Significant Assumptions	Private Placement Refinancing Warrants	Private Placement Refinancing Warrants	Dispensary Mortgage Warrants
Date of Issuance	October 15, 2021	April 30, 2021	June 5, 2020
Volatility	73%	73%	80%
Estimated Term	4 years	4 years	5 years
Risk Free Rate	1.12%	0.74%	0.37%