v3.25.2
WARRANTS
 12 Months Ended
Mar. 31, 2025
Warrants  
WARRANTS

12. WARRANTS

 

On March 9, 2025, the Company converted 133,333 Special Warrants Units into 133,333 Subordinate Voting Shares and 66,667 warrants.

 

On February 2025, the Company issued 257,312 warrants in connection with the conversion of the convertible debenture (Note 13). Each warrant is exercisable into one Subordinate Voting Share at a price of CAD$52.92 ($36.81 at balance sheet rate) per warrant.

 

On January 9, 2025, in connection with the Prospectus Supplement offering closed, the Company issued 235,904 warrants and 26,420 Compensation Warrants (Note 11).

 

The total fair value of the compensation warrants was $920,786, estimated using the Black-Scholes option pricing model with the following weighted average assumptions:

 

   CAD$   $ 
Share price at grant date  $46.17   $32.20 
Risk-free interest rate   2.88%   2.88%
Expected life   3 years    3 years 
Expected volatility   121.6%   121.6%
Expected dividends   Nil    Nil 
Grant date fair value per warrant  $33.31   $23.23 

 

On January 8, 2025, 28 broker warrants were issued in connection with the exercise of broker Units.

 

In November and December 2024, in connection with the issuance of Life Offering, the Company issued 129,508 warrants and 13,615 Compensation Warrants (Note 11).

 

The total fair value of the broker warrants was $165,518, estimated using the Black-Scholes option pricing model with the following weighted average assumptions:

 

 

   CAD$   $ 
Weighted average share price at grant date  $12.35   $8.87 
Weighted average risk-free interest rate   3.01%   3.01%
Expected life   3 years    3 years 
Expected volatility   100%   100%
Expected dividends   Nil    Nil 
Weighted average grant date fair value per warrant  $7.32   $5.25 

 

On November 8, 2024, the Company closed a non-brokered private placement of special warrants (“Special Warrants”) for gross proceeds of up to $1,251,000 (CAD$1,800,000) through the sale of 133,333 Special Warrants at a price of $9.39 (CAD$13.50) per Special Warrant.

 

Each Special Warrant shall convert into one Unit of the Company (a “Unit”) at no additional cost four months and a day after date of issuance of the Special Warrants.

 

Each Unit is comprised of one Subordinate Voting Share (a “Unit Share”), and one-half of one Class A Subordinate Voting Share purchase warrant (each full warrant, a “Unit Warrant”). Each Unit Warrant shall be exercisable into one Subordinate Voting Share (a “Unit Warrant Share”) at a price of CAD$18.90 ($13.15 at balance sheet rate) per Unit Warrant Share for a period of three (3) years from the date of issue of the Unit Warrants.

 

In connection with the issuance of the Special Warrant, the Company issued 6,765 Compensation Warrants, which warrants are exercisable into one unit at CAD$13.50 ($9.39 at balance sheet rate) for a period of 36 months following the closing.

 

 

VERSES AI INC.

Notes to the Consolidated Financial Statements

For the years ended March 31, 2025 and 2024

(Expressed in United States dollars)

 

12. WARRANTS (continued)

 

The total fair value of the broker warrants was $58,290, estimated using the Black-Scholes option pricing model with the following weighted average assumptions:

 

 

   CAD$   $ 
Weighted average share price at grant date  $13.23   $9.49 
Weighted average risk-free interest rate   3.05%   3.05%
Expected life   3 years    3 years 
Expected volatility   100%   100%
Expected dividends   Nil    Nil 
Weighted average grant date fair value per warrant  $8.01   $5.74 

 

In September 2024, in connection with the issuance of Life Offering, the Company issued 115,739 warrants and 10,562 Compensation Warrants (Note 11).

 

The total fair value of the broker warrants was $134,813, estimated using the Black-Scholes option pricing model with the following weighted average assumptions:

 

 

   CAD$   $ 
Weighted average share price at grant date  $19.71   $14.53 
Weighted average risk-free interest rate   2.90%   2.90%
Expected life   3 years    3 years 
Expected volatility   100%   100%
Expected dividends   Nil    Nil 
Weighted average grant date fair value per warrant  $11.54   $8.51 

 

On April 18, 2024, the Company announced a non-brokered private placement of special warrants (“Special Warrants”) for gross proceeds of up to $7,306,000 (CAD$10,000,000) through the sale of 370,370 Special Warrants at a price of $19.74 (CAD$27.00) per Special Warrant.

 

Each Special Warrant shall convert into one Unit of the Company (a “Unit”) at no additional cost upon the earlier of: (i) the Company obtaining a receipt from the applicable securities commission(s) in Canada for the final prospectus qualifying the distribution of the Units to be issued upon exercise or deemed exercise of the Special Warrants; and (ii) the date that is four months and a day after date of issuance of the Special Warrants.

 

Each Unit is comprised of one Subordinate Voting Share (a “Unit Share”), and one-half of one Class A Subordinate Voting Share purchase warrant (each full warrant, a “Unit Warrant”). Each Unit Warrant shall be exercisable into one Subordinate Voting Share (a “Unit Warrant Share”) at a price of CAD$40.50 ($28.17 at balance sheet rate) per Unit Warrant Share for a period of two (2) years from the date of issue of the Unit Warrants.

 

The Company completed the issuance of 370,370 Units for gross proceeds of $7,306,000 (CAD$10,000,000) and paid fees to eligible finders consisting of: (i) $234,087 (CAD$320,404); and (ii) 11,720 finder warrants (the “Finder Warrants”). Each Finders Warrant will be exercisable into one unit (a “Finder Unit”) at a price of CAD$27.00 ($18.78 at balance sheet rate) per Finder Unit until the date that is two (2) years from the date of issue of the Finder Warrants, which Finder Unit will be comprised of a Subordinate Voting Share and one-half of one Subordinate Voting Share purchase warrant (each, whole warrant, a “Finder Unit Warrant”). Each Finder Unit Warrant shall be exercisable into one Subordinate Voting Share (a “Finder Unit Warrant Share”) at a price of CAD$40.50 ($28.17 at balance sheet rate) per Finder Unit Warrant Share for a period of two (2) years from the date of issue of the Finder Unit Warrants.

 

 

VERSES AI INC.

Notes to the Consolidated Financial Statements

For the years ended March 31, 2025 and 2024

(Expressed in United States dollars)

 

12. WARRANTS (continued)

 

The total fair value of the broker warrants was $181,394, estimated using the Black-Scholes option pricing model with the following weighted average assumptions:

 

 

   CAD$   $ 
Weighted average share price at grant date  $27.54   $19.97 
Weighted average risk-free interest rate   4.25%   4.25%
Expected life   2 years    2 years 
Expected volatility   100%   100%
Expected dividends   Nil    Nil 
Weighted average grant date fair value per warrant  $14.12   $10.32 

 

In July and August 2024, the Company converted 370,370 Special Warrants Units into 370,370 Subordinate Voting Shares and 185,181 warrants (Note 11). Each warrant is exercisable at CAD$40.50 ($28.17 at balance sheet rate) within 2 years of the issuance date.

 

On June 20, 2024, in connection with the issuance of convertible debenture (Note 13) the Company issued 255,185 warrants.

 

Warrants outstanding as at March 31, 2025 are summarized below:

 

SCHEDULE OF WARRANTS OUTSTANDING

   Number of warrants   Weighted Average Exercise Price (CAD$)  

Exercise Price

(USD$
equivalent) (1)

 
Balance, March 31, 2023   969,941   $26.73   $18.59 
Issued   338,319    75.03    52.19 
Exercised   (430,199)   35.38    24.61 
Balance, March 31, 2024   878,061   $41.10   $28.59 
Issued   1,340,158    40.16    27.93 
Exercised   (122,993)   24.09    16.76 
Expired   (2)   21.60    15.02 
Balance, March 31, 2025   2,095,224   $41.50   $28.86 

 

(1)Converted at balance sheet rate.

 

  

VERSES AI INC.

Notes to the Consolidated Financial Statements

For the years ended March 31, 2025 and 2024

(Expressed in United States dollars)

 

12. WARRANTS (continued)

 

As of March 31, 2025, the Company’s outstanding share purchase warrants expire as follows:

 

Expiry date  Weighted Average Remaining Contractual Life in Years   Exercise Price (CAD$)  

Exercise Price

(USD$
equivalent) (1)

   Outstanding 
April 3, 2025   0.01    32.40    22.54    117 
April 20, 2025   0.05    32.40    22.54    194 
June 2, 2025   0.17    32.40    22.54    1,149 
June 16, 2025   0.21    32.40    22.54    1,017 
July 10, 2025   0.28    32.40    22.54    98 
August 15, 2025   0.38    32.40    22.54    8,279 
August 15, 2025   0.38    21.60    15.02    42,663 
August 15, 2025 (2)   0.38    27.00    18.78    360,098 
August 25, 2025   0.40    32.40    22.54    184 
April 15, 2026   1.04    10.80    7.51    46,296 
April 17, 2026   1.05    27.00    18.78    3,348 
April 29, 2026   1.08    27.00    18.78    6,618 
May 16, 2026   1.13    27.00    18.78    1,702 
July 6, 2026   1.27    55.35    38.50    29,227 
July 6, 2026 (3)   1.27    68.85    47.89    294,694 
August 17, 2026   1.38    40.50    28.17    126,853 
August 30, 2026   1.42    40.50    28.17    43,062 
September 17, 2026   1.47    40.50    28.17    12,494 
December 22, 2026   1.73    32.40    22.54    809 
January 8, 2027   1.78    40.50    28.17    28 
June 20, 2027   2.22    40.50    28.17    255,185 
September 26, 2027   2.49    21.60    15.02    10,562 
September 26, 2027   2.49    32.40    22.54    114,354 
November 8, 2027   2.61    13.50    9.39    14,444 
November 8, 2027   2.61    18.90    13.15    85,699 
November 15, 2027   2.63    13.50    9.39    2,229 
November 15, 2027   2.63    18.90    13.15    15,290 
December 9, 2027   2.69    13.50    9.39    3,707 
December 9, 2027   2.69    18.90    13.15    28,519 
January 9, 2028   2.78    52.92    36.81    235,906 
January 9, 2028   2.78    42.39    29.49    26,420 
February 25, 2028   2.91    52.92    36.81    257,312 
March 9, 2028   2.94    18.90    13.15    66,667 
    1.83   $41.50    28.86    2,095,224 

 

Notes:

 

(1)Converted at balance sheet rate.

 

(2)Warrants expiring August 15, 2025:

 

Pre-Consolidation exercise terms: 1 warrant + CAD$1.00 ($0.6956 at balance sheet rate) = 1 Class A Subordinate Voting share.

 

Post-Consolidation Exercise Terms: 27 Warrants + CAD$27.00 ($18.78 at balance sheet rate) = 1 New Class A Subordinate Voting share.

 

For presentation purposes, the Company divided the total outstanding warrants by 27 to reflect 1 warrant + CAD$27.00 ($18.78 at balance sheet rate) = 1 New Class A Subordinate Voting share.

 

(3)Warrants expiring July 6, 2026

 

Pre-Consolidation Exercise Terms: 1 Warrant + CAD$2.55 ($1.77 at balance sheet rate) = 1 Class A Subordinate Voting share.

 

Post-Consolidation Exercise Terms: 27 Warrants + CAD$68.85 (47.89 at balance sheet rate) = 1 New Class A Subordinate Voting share.

 

For presentation purposes, the Company divided the total outstanding warrants by 27 to reflect 1 warrant + CAD$68.85 (47.89 at balance sheet rate) = 1 New Class A Subordinate Voting share.

 

 

VERSES AI INC.

Notes to the Consolidated Financial Statements

For the years ended March 31, 2025 and 2024

(Expressed in United States dollars)