Stockholders' deficit

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

Stockholders' deficit

12. Stockholders' deficit

a) Common shares

Authorized, issued and outstanding

The Company has authorized 10,000,000,000 shares with a par value of $0.01 per share. The company has issued and outstanding common shares of 1,577,862,975 and 155,483,897 as of March 31, 2020 and December 31, 2019, respectively.

Between January 6, 2020 and February 27, 2020, the Company issued 1,316,679,078 shares of common stock in terms of conversion notices received from convertible note holders. The shares issued were issued below par based on the market price of the stock on the date of conversion and were valued at $531,005.

On January 8, 2020, the Company recorded the issuance of 2,700,000 shares to Labrys Fund. These shares were originally issued to Labrys fund as shares returnable to the Company dependent on settlement of the convertible note at maturity. The Company did not settle the convertible note or interest thereon at maturity.

Between January 6, 2020 and February 13, 2020, the Company issued 103,000,000 shares of common stock to Leonite Investment in terms of the exercise of 125,609,759 warrants valued at $92,952 at an average exercise price of 0.00009 per share, based on the price protection afforded to the warrant holder.

b) Preferred shares

Authorized, issued and outstanding

The Company has authorized 13,000,000 preferred shares with a par value of $0.01 per share, designated as 3,000,000 series A convertible preferred shares and 10,000,000 series B convertible preferred shares. The Company has no preferred shares issued and outstanding.

c) Warrants

In terms of the price protection provided in the Leonite Capital, LLC warrants which were issued at an initial exercise price of $0.10 per share. These warrants provided for a reduction in the issue price should the Company issue any stock at a price below the exercise price. The Company subsequently issued common stock at a price of $0.0000324 per share thereby triggering the price protection clause in the warrant agreement, resulting in an additional 152,017,272,726 warrants exercisable over shares of common stock. Leonite exercised warrants over 125,609,759 shares of common stock resulting in the issue of 103,000,000 shares of common stock. The remaining Leonite warrants exercisable for 154,399,456,399 shares are exercisable at $0.0000324 per share.

A summary of all of the Company’s warrant activity during the period January 1, 2019 to March 31, 2020 is as follows:

	No. of shares			Exercise price per  share		Weighted average exercise price
Outstanding as of January 1, 2019		97,499,908			$0.003 to $0.12	$	0.0910000
Granted		27,700,652			$0.10 to $0.12		0.1177300
Adjustment due to price protection		2,456,534,397		$	0.00204		0.0020400
Forfeited/cancelled		(15,633,709	)		0.03		0.0300000
Exercised		—			—		—
Outstanding as of December 31, 2019		2,566,101,248			$0.00204 to $0.12	$	0.0044700
Granted		—			—		—
Adjustment due to price protection		152,017,272,726		$	0.0000324		0.0000324
Forfeited/cancelled		(2,366,666	)		0.03		0.0300000
Exercised		(125,609,759	)		0.0009		0.0009000
Outstanding as of March 31, 2020		154,455,397,549			$0.0000324 to $0.12	$	0.0000737

The following table summarizes information about warrants outstanding at March 31, 2020:

	Warrants outstanding						Warrants exercisable
Exercise price	No. of shares		Weighted average remaining years		Weighted average exercise price		No. of shares		Weighted average exercise price
$0.0000324		154,399,456,349		2.94				154,399,456,349
$0.03		3,703,700		1.04				3,703,700
$0.12		52,237,500		1.64				52,237,500
		154,455,397,549		2.94	$	0.0000737		154,455,397,549	$	0.0000737

All of the warrants outstanding as of March 31, 2020 and December 31, 2019 are vested. The warrants outstanding as of March 31, 2020 have an intrinsic value of $10,437,403.

d) Stock options

Our board of directors adopted the Greenestone Healthcare Corporation 2013 Stock Option Plan (the “Plan”) to promote our long-term growth and profitability by (i) providing our key directors, officers and employees with incentives to improve stockholder value and contribute to our growth and financial success and (ii) enable us to attract, retain and reward the best available persons for positions of substantial responsibility. A total of 10,000,000 shares of our common stock have been reserved for issuance upon exercise of options granted pursuant to the Plan. The Plan allows us to grant options to our employees, officers and directors and those of our subsidiaries; provided that only our employees and those of our subsidiaries may receive incentive stock options under the Plan.

No options were issued, exercised or cancelled during the three months ended March 31, 2020 and the year ended December 31, 2019, respectively.