On September 20, 2023, the Company issued approximately 7.5 million warrants. Each warrant is exercisable for 1.171 common shares of Greenfire at an exercise price of US$9.82 per share. The outstanding warrants expire on September 19, 2028, and contain a cashless exercise feature, permitting an exercise without the payment of the exercise price by the issuance of a net, lower number of common shares. The warrants are remeasured to their fair value at each reporting period with the change recognized through the statement of comprehensive income (loss). The following table summarizes the changes to the Company’s warrant liability.

The fair value of each warrant was estimated using the Black Scholes Merton model with the following assumptions:

A 10% increase in the share price would increase warrant liability by $3.3 million with a corresponding adjustment to the statement of comprehensive income (loss).