Warrants |
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Warrants | 15. Warrants
A continuity of the Company’s outstanding share purchase warrants for the nine months ended September 30, 2022 and the year ended December 31, 2021 is presented below:
As at September 30, 2022, the weighted average remaining contractual life of outstanding warrants is years.
As at December 31, 2021, the Company had warrants issued in connection with private placements, or debt settlements. The exercise price of such warrants was denominated in CAD other than the functional currency prior to January 1, 2022. As such the warrants were classified as derivate liabilities with a fair value of $ . As a result of the change in functional currency of the Company to CAD on January 1, 2022, such warrants were reclassified to equity.
TRILLION ENERGY INTERNATIONAL INC. Notes to the Consolidated Interim Financial Statements For the nine months ended September 30, 2022 and 2021 (Expressed in U.S. dollars) (Unaudited)
Due to the change in functional currency of the Company, 163,162 were reassessed to be derivative liabilities as the exercise prices are denominated in USD other than the new functional currency. Immediately before the reclassification, the fair value of the warrants were remeasured using the Black-Scholes option pricing model, with the following assumptions (weighted average): expected dividend yield - %, expected volatility - %, risk-free interest rate – % and an expected remaining life – years. The Company recognized a loss in fair value change on the derivative liabilities of $ on January 1, 2022. As at September 30, 2022, the fair value of the warrants were remeasured at $ using Black-Scholes option pricing model, with the following assumptions (weighted average): expected dividend yield - %, expected volatility - %, risk-free interest rate – % and an expected remaining life ranging from – years. The Company recognized a loss on fair value change of $ for the nine months ended September 30, 2022. warrants with a carrying value of $
The following is a continuity of the Company’s derivative warrant liability:
In connection with the private placements in March, 2022, the Company issued warrants and finder’s warrants for a total number of (Note 13). As the fair value of the common shares on the closing dates of the private placements were greater than the unit subscription price, no residual value was assigned to any of the warrants. The fair values for finder’s warrants granted during the current period, have been estimated using the Black-Scholes option pricing model using the following assumptions:
During the nine months ended September 30, 2022, 4,155,750 warrants were exercised ranging from $ – CAD (approximately US$ – $ ) for gross proceeds of $ CAD (US$ ). $ CAD (US$ ) was paid through cash and $ CAD (US$ ) was attributed to prepaid expenses.
TRILLION ENERGY INTERNATIONAL INC. Notes to the Consolidated Interim Financial Statements For the nine months ended September 30, 2022 and 2021 (Expressed in U.S. dollars) (Unaudited) |