Share Capital

3 Months Ended

Mar. 31, 2017

Stockholders Equity Note [Abstract]

Share Capital

7. Share Capital

(a) Financing:

On September 13, 2016, the Company completed an underwritten public offering of 3,450,000 of its common shares at a public offering price of $7.50 per common share. The Company received approximately $24.3 million of proceeds, net of underwriting discounts and commissions but before offering expenses.

(b) Stock-based compensation:

The following table presents stock option activity for the period:

	ThreeMonths Ended March 31,
	2017			2016
Outstanding, beginning of period		1,910,823			1,721,472
Granted		416,750			233,950
Exercised(1)		(67,921	)		(16,246	)
Forfeited and expired		(1,415	)		(4,442	)
Outstanding, end of period		2,258,237			1,934,734
Exercisable, end of period		1,293,367			1,151,853

⁽¹⁾ During the three months ended March 31, 2017, 62,397 stock options were exercised for the same number of common shares for cash (three months ended March 31, 2016 – 16,246). In the same period, the Company issued 3,693 common shares (three months ended March 31, 2016 – nil) for the cashless exercise of 5,524 stock options (three months ended March 31, 2016 – nil).

The fair value of each option granted to employees and non-employees is estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions:

	Three Months Ended March 31,
	2017			2016
Average risk-free interest rate		2.44	%		1.64	%
Expected volatility		81	%		75	%
Average expected term (in years)		7.47			6.25
Expected dividend yield		0.00	%		0.00	%

The weighted-average fair value of options granted during the three months ended March 31, 2017 was $6.34 (three months ended March 31, 2016 – $4.95) per option.