As of April 23, 2018, there were outstanding warrants to purchase 43,109,000 shares.  The weighted average exercise price of warrants is CAD$0.58.  So currently there is $25 million in warrants outstanding.

As many people will recall the share price through Feb and into early March saw significant gains and warrant holders of the .52 warrants began exercising. The share count indicates that roughly 3 million warrants were exercised between Feb 21 and March 15. As we will recall that abruptly ended when the company did a bought deal on April 12 for $8 million at .55 which was increased to $13.8 million due to demand.

Many of us were caught off guard on this as warrants were being exercised at the time. That being said the company has made it known that they have an arrangement where they can call on warrant holders and clearly that was demonstrated over the time period mentioned.

So this is what I think is going to happen. I believe the company took advantage of the interest that was shown in doing a bought deal with acceptable terms including a ½ warrant at .75. With now 43 million warrants outstanding I believe the company sees this as money in the bank that can be called upon following a news event which puts those warrants in the money. I do expect that we will get some guidance on where the money is coming as products become available for commercial production. And I think with $25 million in warrants there would be a significant interest to get those in the money instead of doing another public offering.

I expect that we will have a much clearer picture in Nov Q3 reporting. I also believe there is a significant potential that a deal which does not involve a public offering will  be the triggering event. The level  of continued hiring speaks to the workload that this  company is under. No  one does that level of hiring without having a source of money rather than relying on market conditions to do  a public raise.