20. PIPE Financing - Private Placement and Warrants

Private placement

On December 24, 2024, the Company completed a private placement with HC Wainwright & Co., LLC, raising gross proceeds of $2,000,000 through the issuance of:

The proceeds were allocated between the common shares and the warrants based on their relative fair values on the date of issuance. The fair value allocation was as follows:

Fair value allocation  

Fair value allocation assumptions

The common shares were estimated using the share price on date of issuance - $121.05.

The pre-funded warrants and the warrants were estimated using a Black Scholes valuation model using the following estimates:

Share Issuance Costs

The Company incurred $257,949 in cash settled share issuance costs, which were allocated proportionately to the equity instruments issued. The portion related to the common shares, $40,449, was deducted from share capital, and the portion related to the warrants, $217,500, was deducted from the warrant reserve. The Company also incurred $137,778 in warrant settled issuance costs, 1,506 warrants, which was allocated to warrant reserve.

Pre-funded Warrant Exercise

During the prior year ended March 31, 2025, all 12,447 pre-funded warrants were exercised. An amount of $511,690, representing the fair value originally allocated to the pre-funded warrants, was reclassified from warrant reserve to share capital upon exercise. An amount of $66,003 of share issuance costs was reallocated to share capital upon exercise.

All instruments issued in the private placement were classified as equity instruments, as they did not contain any contractual obligations to deliver cash or other financial assets and met the fixed-for-fixed condition.