Note 11 - Capital Stock

6 Months Ended

Jan. 31, 2019

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE

11

: CAPITAL STOCK

Equity Financing

On

October 3, 2018,

we completed a public offering of

12,613,049

units at a price of

$1.60

per unit for gross proceeds of

$20,180,878

(the

“October 2018

Offering”). Each unit was comprised of

one

share of the Company and

one

-half of

one

share purchase warrant. Each whole warrant entitles its holder to acquire

one

share at an exercise price of

$2.05

per share, exercisable immediately upon issuance and expiring

30

months from the date of issuance. In connection with the

October 2018

Offering, we also issued compensation share purchase warrants to agents as part of share issuance costs to purchase

756,782

shares of our Company, exercisable at an exercise price of

$2.05

per share and expiring

30

months from the date of issuance.

The shares were valued at the Company’s closing price of

$1.54

per share at

October 3, 2018.

The share purchase warrants were valued using the Black-Scholes option pricing model with the following assumptions:

Expected Risk Free Interest Rate	2.90	%
Expected Annual Volatility	63.30	%
Expected Contractual Life in Years	2.50
Expected Annual Dividend Yield	0.00	%

The net proceeds from the

October 2018

Offering were allocated to the fair values of the shares and share purchase warrants as presented below:

Fair Value of Shares	$	19,424,095
Fair Value of Share Purchase Warrants		3,094,693
Total Fair Value Before Allocation to Net Proceeds	$	22,518,788
Gross Proceeds	$	20,180,878
Share Issuance Costs - Cash		(1,211,667	)
Net Cash Proceeds Received	$	18,969,211
Relative Fair Value Allocation to:
Shares	$	16,362,327
Share Purchase Warrants		2,606,884
	$	18,969,211

Share Transactions

A summary of the share transactions for the

six

months ended

January 31, 2019

are as follows:

Period / Description	Common		Value per Share				Issuance
	Shares Issued		Low		High		Value
Balance, July 31, 2018		161,175,764
Equity Financing		12,613,049	$	1.60	$	1.60	$	20,180,878
Consulting Services		30,845		1.61		1.77		50,713
Warrants Exercised		2,061,764		1.20		1.35		2,496,617
Options Exercised (1)		100,422		0.93		1.32		113,539
Shares Issued Under Stock Incentive Plan		141,546		1.65		1.72		239,255
Balance, October 31, 2018		176,123,390
Credit Facility		1,180,328		1.19		1.19		1,400,000
Consulting Services		98,861		1.26		1.42		127,741
Options Exercised (2)		16,964		0.45		0.45		7,634
Shares Issued Under Stock Incentive Plan		223,156		1.25		1.33		290,237
Balance, January 31, 2019		177,642,699

( 1 ) 117,250 stock options were exercised on a forfeiture basis, resulting in 34,172 net shares being issued.

( 2 ) 25,000 stock options were exercised on a forfeiture basis, resulting in 16,964 net shares being issued.

Share Purchase Warrants

A continuity schedule of outstanding share purchase warrants is as follows:

	Number of Warrants			Weighted Average Exercise Price
Balance, July 31, 2018		30,923,489			1.97
Issued		7,063,253			2.05
Exercised		(2,061,764	)		1.21
Expired		(2,850,000	)		2.35
Balance, January 31, 2019		33,074,978		$	2.00

A summary of share purchase warrants outstanding and exercisable at

January 31, 2019

are as follows:

Weighted Average Exercise Price		Number of Warrants Outstanding		Expiry Date	Weighted Average Remaining Contractual Life (Years)
$	1.20		2,631,068	March 10, 2019		0.10
	1.35		2,450,000	January 30, 2020		1.00
	1.64		50,000	May 21, 2023		4.30
	2.00		9,571,929	January 20, 2020		0.97
	2.05		7,063,253	April 3, 2021		2.17
	2.30		11,308,728	August 9, 2022		3.52
$	2.00		33,074,978			2.04

Subsequent to

January 31, 2019,

we received cash proceeds totaling

$2,325,740

from the exercise of

1,938,117

share purchase warrants with an exercise price of

$1.20

per share.