Annual report pursuant to Section 13 and 15(d)

Note 11 - Share Capital

v3.22.1
Note 11 - Share Capital
 12 Months Ended
Dec. 31, 2021
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]

11.

Share capital:

 

The Company has authorized share capital of an unlimited number of common voting shares.

 

 

(a)

Equity issuances:

 

 

(i)

On November 4, 2021, the Effective date, the Company entered into an exclusive license agreement with Hanmi Pharmaceutical Co. Ltd. (Hanmi) for global rights to its compound named HM43239.  Pursuant to the terms of this agreement, on December 14, 2021, the Company issued 3,235,548 Common Shares as a partial upfront payment to Hanmi in consideration of the license and other rights granted for a total cost of $7.5 million. The number of common shares issued is determined using the average market closing price of the common shares on the NASDAQ stock market over the five (5) trading day period ending on the Effective Date. 

 

 

(ii)

2020 At‑The‑Market (“ATM”) Facility

 

On May 5, 2020, the Company entered into an equity distribution agreement with Piper Sandler and Canaccord Genuity acting as co-agents in connection with the 2020 ATM Facility. Under the terms of the 2020 ATM Facility, the Company may, from time to time, sell Common Shares having an aggregate offering value of up to $75 million through Piper Sandler and Canaccord Genuity on the Nasdaq Capital Market. During the year ended December 31, 2021, the Company issued 15,315 shares under this ATM Facility at an average price of $2.446 for gross proceeds of $37 thousand ($36 thousand net of share issue costs). Costs associated with the proceeds consisted of a 3% cash commission.

 

 

(iii)

July/August 2020 Confidentially Marketed Public Offering (CMPO)

 

On July 20, 2020 and August 10, 2020, the Company completed a confidentially marketed public offering through the issuance of 11,854,472 common shares at a price of $5.25 per share for gross proceeds of $62.236 million (approximately $58.234 million net of share issue costs). Costs associated with the proceeds consisted of a 6% cash commissions and share issue costs, which consisted of agent commission, legal and professional fees and listing fees.

 

 

(b)

Loss per share:

 

Loss per common share is calculated using the weighted average number of common shares outstanding and is presented in the table below:

 

(in thousands)

  

Year ended
December 31, 2021

    

Year ended
December 31, 2020

  
                 

Net loss

   $ (65,354 )   $ (55,238 )

Weighted-average common shares – basic and diluted

     89,086       81,837  

Net loss per share – basic and diluted

   $ (0.73 )   $ (0.67 )

 

The effect of any potential exercise of the Company’s stock options outstanding during the year ended December 31, 2021 and December 31, 2020 has been excluded from the calculation of diluted loss per common share as it would be anti‑dilutive.