UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 40-F
(AMENDMENT NO. 1)
¨ | Registration statement pursuant to Section 12 of the Securities Exchange Act of 1934 |
or
x | Annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 |
For the fiscal year ended May 31, 2019 | Commission File Number 001-38708 |
Aphria Inc.
(Exact name of Registrant as specified in its charter)
Canada (Province or other jurisdiction of incorporation or organization) |
2833 (Primary Standard Industrial Classification Code Number) |
N/A (I.R.S. Employer Identification Number) |
265 Talbot St. W.
Leamington, Ontario, Canada N8H 4H3
(844) 427-4742
(Address and telephone number of Registrant’s principal executive offices)
CT Corporation
System 20005 (202) 572-3100 (Name, address (including zip code) and telephone number (including area code) of agent for service in the United States) |
Securities registered or to be registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Shares | APHA | New York Stock Exchange |
Securities registered pursuant to Section 12(g) of the Act: Common Shares, no par value
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None
For annual reports, indicate by check mark the information filed with this Form:
x Annual information form | x Audited annual financial statements |
Indicate the number of outstanding shares of each of the registrant’s classes of capital or common stock as of the close of the period covered by the annual report: 250,989,120
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). ¨ Yes ¨ No
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.
Emerging growth company x
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ¨
† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
EXPLANATORY NOTE
Aphria Inc. (“Aphria” or the “Registrant”) is filing this Amendment No. 1 (the “Form 40-F/A”) to its Annual Report on Form 40-F for the year ended May 31, 2019 (the “Fiscal Year”), filed on August 1, 2019 (the “Original Filing”), solely to furnish its financial statements for the Fiscal Year formatted in eXtensible Business Reporting Language (“XBRL”). In accordance with the policy of the Securities and Exchange Commission (the “Commission”) stated in Release No. 33-9002, Aphria is filing this Form 40-F/A within the 30-day period available to first-time XBRL filers following the filing of our Form 40-F Annual Report, as filed with the Commission in the Original Filing.
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SIGNATURES
Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized.
APHRIA INC. | |||
By: | /s/ Irwin Simon . | ||
Name: | Irwin Simon | ||
Title: | Chief Executive Officer |
Date: August 23, 2019
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EXHIBIT INDEX
The following documents are being filed with the Commission as Exhibits to this Form 40-F/A:
Exhibit | Description |
99.1 | Annual Information Form dated July 31, 2019* |
99.2 | Audited Annual Consolidated Financial Statements and notes thereto as at and for the years ended May 31, 2019 and May 31, 2018, together with the report thereon of the independent auditor* |
99.3 | Management’s Discussion and Analysis for the years ended May 31, 2019 and May 31, 2018* |
99.4 | Certificate of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Exchange Act* |
99.5 | Certificate of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Exchange Act* |
99.6 | Certificate of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002* |
99.7 | Certificate of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002* |
99.8 | Consent of PricewaterhouseCoopers LLP* |
XBRL | |
101.INS | XBRL Instance |
101.SCH | XBRL Taxonomy Extension Schema |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase |
101.DEF | XBRL Taxonomy Extension Definition Linkbase |
101.LAB | XBRL Taxonomy Extension Label Linkbase |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
* Previously filed in the Original Filing.
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Document and Entity Information |
12 Months Ended |
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May 31, 2019
shares
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Document and Entity Information | |
Entity Registrant Name | Aphria Inc. |
Entity Central Index Key | 0001733418 |
Document Type | 40-F |
Document Period End Date | May 31, 2019 |
Amendment Flag | false |
Current Fiscal Year End Date | --05-31 |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Common Stock, Shares Outstanding | 250,989,120 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Consolidated Statements of Changes in Equity - CAD ($) $ in Thousands |
Share capital
November 2017 bought deal
|
Share capital
January 2018 bought deal
|
Share capital
June 2018 Bought deal
|
Share capital
Broken Coast Cannabis Ltd.
|
Share capital
Nuuvera Holdings Limited
|
Share capital
LATAM Holdings Inc.
|
Share capital |
Warrants
Nuuvera Holdings Limited
|
Warrants |
Share-based payment reserve
Nuuvera Holdings Limited
|
Share-based payment reserve |
Accumulated other comprehensive loss |
Non-controlling interest
LATAM Holdings Inc.
|
Non-controlling interest |
Retained earnings |
November 2017 bought deal |
January 2018 bought deal |
June 2018 Bought deal |
Broken Coast Cannabis Ltd. |
Nuuvera Holdings Limited |
LATAM Holdings Inc. |
Total |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance at May. 31, 2017 | $ 274,317 | $ 445 | $ 3,230 | $ (4,123) | $ 273,869 | |||||||||||||||||
Balance (in shares) at May. 31, 2017 | 138,628,704 | |||||||||||||||||||||
Shares issuance - Bought Deal | $ 86,661 | $ 214,168 | $ 86,661 | $ 214,168 | ||||||||||||||||||
Shares issuance - Bought Deal (in shares) | 12,689,675 | 14,373,675 | ||||||||||||||||||||
Share issuance - acquisition | $ 109,000 | $ 411,258 | $ 1,015 | $ 12,133 | $ 109,000 | $ 424,406 | ||||||||||||||||
Share issuance - acquisition (in shares) | 8,363,651 | 31,226,910 | ||||||||||||||||||||
Share issuance - warrants exercised | $ 3,767 | (85) | 3,682 | |||||||||||||||||||
Share issuance - warrants exercised (in shares) | 2,388,636 | |||||||||||||||||||||
Share issuance - options exercised | $ 11,559 | (7,230) | 4,329 | |||||||||||||||||||
Share issuance - options exercised (in shares) | 2,493,623 | |||||||||||||||||||||
Share issuance - deferred share units | $ 62 | 62 | ||||||||||||||||||||
Share issuance - deferred share units (in shares) | 5,050 | |||||||||||||||||||||
share-based payments | 15,780 | 15,780 | ||||||||||||||||||||
Income tax recovery on share issuance costs | $ 3,002 | 3,002 | ||||||||||||||||||||
Shares held in escrow for services not yet earned | 187 | 187 | ||||||||||||||||||||
Share-based payments rescinded | (1,907) | 1,907 | ||||||||||||||||||||
Non-controlling interest | $ 9,800 | 9,800 | ||||||||||||||||||||
Total comprehensive income for the year | $ (801) | (220) | 29,668 | 28,647 | ||||||||||||||||||
Balance at May. 31, 2018 | $ 1,113,981 | 1,375 | 22,006 | (801) | 9,580 | 27,452 | 1,173,593 | |||||||||||||||
Balance (in shares) at May. 31, 2018 | 210,169,924 | |||||||||||||||||||||
Shares issuance - Bought Deal | $ 245,925 | $ 245,925 | ||||||||||||||||||||
Shares issuance - Bought Deal (in shares) | 21,835,510 | |||||||||||||||||||||
Share issuance - acquisition | $ 297 | $ 273,900 | $ 11,341 | $ 297 | $ 285,241 | |||||||||||||||||
Share issuance - acquisition (in shares) | 19,963 | 15,678,310 | ||||||||||||||||||||
Share issuance - warrants exercised | $ 1,762 | (39) | 1,723 | |||||||||||||||||||
Share issuance - warrants exercised (in shares) | 550,335 | |||||||||||||||||||||
Share issuance - options exercised | $ 15,029 | (9,933) | 5,096 | |||||||||||||||||||
Share issuance - options exercised (in shares) | 2,632,078 | |||||||||||||||||||||
Share issuance - deferred share units | $ 953 | 953 | ||||||||||||||||||||
Share issuance - deferred share units (in shares) | 103,000 | |||||||||||||||||||||
share-based payments | 24,078 | 24,078 | ||||||||||||||||||||
Income tax recovery on share issuance costs | $ 3,426 | 3,426 | ||||||||||||||||||||
Elimination of CTA on disposal of equity investee | 801 | (801) | ||||||||||||||||||||
Non-controlling interest | 9,439 | 9,439 | ||||||||||||||||||||
Total comprehensive income for the year | (119) | (1,951) | (14,548) | (16,618) | ||||||||||||||||||
Balance at May. 31, 2019 | $ 1,655,273 | $ 1,336 | $ 36,151 | $ (119) | $ 28,409 | $ 12,103 | $ 1,733,153 | |||||||||||||||
Balance (in shares) at May. 31, 2019 | 250,989,120 |
Consolidated Statements of Cash Flows (Parenthetical) - CAD ($) $ in Thousands |
May 31, 2019 |
May 31, 2018 |
---|---|---|
Cash is comprised of: | ||
Cash in bank | $ 129,998 | $ 15,073 |
Short-term deposits | 420,799 | 44,664 |
Cash and cash equivalents | $ 550,797 | $ 59,737 |
Nature of operations |
12 Months Ended |
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May 31, 2019 | |
Nature of operations | |
Nature of operations | 1. Nature of operations Aphria Inc. (the "Company" or “Aphria”) existing under the laws of Business Corporations Act (Ontario) and is licensed to produce and sell cannabis under The Cannabis Act. In February 2018, the Company acquired Broken Coast Cannabis Ltd. (“Broken Coast”) (Note 11). Broken Coast is licensed to produce and sell cannabis under The Cannabis Act. In March 2018, the Company acquired Nuuvera Inc. (“Nuuvera”) (Note 11). Nuuvera is an international organization with a focus on building a global cannabis brand, with operations in Germany, Italy, Malta, and Lesotho. In September 2018, the Company acquired LATAM Holdings Inc. (“LATAM”) (Note 11). This purchase provides Aphria an early foothold into the Latin American cannabis market whereby LATAM holds licenses and license applications presently in-process for production, import, export and sale of cannabis and cannabis derivatives in Colombia, Argentina and Jamaica. In January 2019, Aphria through wholly-owned subsidiary Nuuvera Deutschland GmbH acquired CC Pharma GmbH (“CC Pharma”) (Note 11). CC Pharma is a distributor of pharmaceutical products to pharmacies in Germany. In July 2018, Aphria Inc. and its wholly-owned subsidiary, Pure Natures Wellness Inc. (o/a Aphria) amalgamated. 1974568 Ontario Ltd. (“Aphria Diamond”) is a 51% majority owned subsidiary of the Company, incorporated in November 2017. Aphria Diamond has applied for its cultivation licence under the provisions of The Cannabis Act. The registered office of the Company is located at 1 Adelaide Street East Suite 2310, Toronto, Ontario. The Company’s common shares are listed under the symbol “APHA” on the Toronto Stock Exchange (“TSX”) in Canada and the New York Stock Exchange (“NYSE”) in the United States. These consolidated financial statements were approved by the Company’s Board of Directors on July 31, 2019.
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Basis of preparation |
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Basis of preparation | 2. Basis of preparation (a)Statement of compliance The policies applied in these consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and Interpretations of the IFRS Interpretations Committee (“IFRIC”). (b)Basis of measurement These consolidated financial statements have been prepared on the going concern basis, under the historical cost convention except for certain financial instruments that are measured at fair value and biological assets that are measured at fair value less costs to sell, as detailed in the Company’s accounting policies. (c)Functional currency All figures presented in the consolidated financial statements are reflected in Canadian dollars; however, the functional currency of the Company includes the Canadian dollar and the Euro. Foreign currency transactions are translated to the respective functional currencies of the Company’s entities at the exchange rates in effect on the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the foreign exchange rate applicable at the statement of financial position date. Non-monetary items carried at historical cost denominated in foreign currencies are translated to the functional currency at the date of the transactions. Non-monetary items carried at fair value denominated in foreign currencies are translated to the functional currency at the date when the fair value was determined. Realized and unrealized exchange gains and losses are recognized through profit and loss. On consolidation, the assets and liabilities of foreign operations reported in their functional currencies, including marketable securities, long-term investments and promissory notes payable, are translated into Canadian dollars, the Group’s presentation currency, at period-end exchange rates. Income and expenses, and cash flows of foreign operations are translated into Canadian dollars using average exchange rates. Exchange differences resulting from translating foreign operations are recognized in other comprehensive income and accumulated in equity. The Company and all of its subsidiaries functional currency is Canadian dollars, with the exception of CC Pharma GmbH whose functional currency is the Euro. (d)Basis of consolidation Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly and indirectly, to govern the financial and operating policies of an entity and be exposed to the variable returns from its activities. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.
Intragroup balances, and any unrealized gains and losses or income and expenses arising from transactions with jointly controlled entities are eliminated to the extent of the Company’s interest in the entity. The Company treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Company. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognized in a separate reserve within equity attributable to the owners of the Company. (e)Amalgamations and dissolutions Effective June 1, 2017, CannWay Pharmaceuticals Ltd. (“CannWay”), a wholly-owned subsidiary of the Company, was amalgamated with Pure Natures Wellness Inc. (o/a Aphria). The Company has historically presented all balances and activities of CannWay as a fully consolidated entity for financial statement presentation purposes. As of the date of amalgamation, CannWay did not have any assets or outstanding liabilities. There were no material changes to be considered prospectively or to the comparative consolidated statements as a result of the amalgamation. Effective July 23, 2018, Pure Natures Wellness Inc. (o/a Aphria). (“PNW”), a wholly-owned subsidiary of the Company, was amalgamated with Aphria Inc. The Company had historically presented all balances and activities of PNW as a fully consolidated entity for financial statement presentation purposes. There were no material changes to be considered prospectively or to the comparative consolidated statements as a result of the amalgamation. Effective February 1, 2019, 2589671 Ontario Inc. and 2589674 Ontario Inc., each a wholly-owned subsidiary of the Company, were amalgamated with Avalon Pharmaceuticals Inc. The Company has historically presented all balances and activities of 2589671 Ontario Inc., 2589674 Ontario Inc. and Avalon Pharmaceuticals Inc. as a fully consolidated entity for financial statement presentation purposes. Effective April 15, the Company wound-up wholly owned subsidiary Avalon Pharmaceuticals into wholly owned subsidiary Nuuvera Holdings Limited. There were no material changes to be considered prospectively or to the comparative consolidated statements as a result of the amalgamation and wind-up. Effective April 15, 2019, Nuuvera Inc. and Cannan Growers Inc., each a wholly-owned subsidiary of the Company, were wound up into Aphria Inc. The Company had historically presented all balances and activities of Nuuvera Inc. and Cannan Growers Inc. as a fully consolidated entity for financial statement presentation purposes. There were no material changes to be considered prospectively or to the comparative consolidated statements as a result of the wind-up. Effective April 25, 2019, Aphria (Arizona) Inc., a wholly-owned subsidiary of the Company, was dissolved. The Company had historically presented all balances and activities of Aphria (Arizona) Inc. as a fully consolidated entity for financial statement presentation purposes. There were no material changes to be considered prospectively or to the comparative consolidated statements as a result of the dissolution. (f)Interest in equity investees The Company’s interest in equity investees is comprised of its interest in Althea Company Pty Ltd. (“Althea”). In accordance with IFRS 10, associates are those in which the Company has significant influence, but not control or joint control over the financial and accounting policies. Interests in associates are accounted for using the equity method in accordance with IAS 28. They are recognized initially at cost, which includes transaction costs. After initial recognition, the consolidated financial statements include the Company’s share of the profit or loss and other comprehensive income (“OCI”) of equity investees until the date on which significant influence ceases. If the Company’s share of losses in an equity investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the other entity. Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. The carrying amount of equity investments is tested for impairment in accordance with the policy described in Note 3(k).
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Significant accounting policies |
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Significant accounting policies | 3. Significant accounting policies The significant accounting policies used by the Company are as follows: a. Revenue Revenue is measured based on the consideration that the Company expects to be entitled to in exchange for transferring promised goods. Revenue from the sale of goods is recognized when control of the goods has transferred, which is determined by respective shipping terms and certain additional considerations. Invoices are generally issued at the time of delivery (which is when the Company has satisfied its performance obligation under the arrangement). The Company does not have performance obligations subsequent to delivery on the sale of goods to customers and revenues from sale of goods are recognized upon passing of control to the customer. Amounts disclosed as net revenue are net of sales tax, duty tax, allowances, discounts and rebates. c. Cash and cash equivalents Cash and cash equivalents are comprised of cash and highly liquid investments that are readily convertible into known amounts of cash and are subject to insignificant risk of changes in value. d. Marketable securities Marketable securities are comprised of liquid investments in federal, provincial and/or corporate bonds with maturities less than 3.5 years. Marketable securities are recognized initially at fair value and subsequently adjusted to fair value through profit or loss (“FVTPL”). e. Inventory Inventory is valued at the lower of cost and net realizable value. Cost is determined using the weighted average method. The capitalized cost of inventory includes the direct and indirect costs initially capitalized to biological assets before the transfer to inventory. The capitalized cost also includes subsequent costs such as materials, labour and amortization expense on equipment involved in packaging, labelling and inspection. The total cost of inventory also includes a fair value adjustment which represents the fair value of the biological asset at the time of harvest. All direct and indirect costs related to inventory are capitalized as they are incurred, and they are subsequently recorded within ‘production costs’ on the statements of income and comprehensive income at the time cannabis is sold, the realized fair value amounts included in inventory sold are recorded as a separate line on the statements of income and comprehensive income. f. Biological assets The Company’s biological assets consist of cannabis plants which are not yet harvested. These biological assets are measured at fair value less costs to sell. The Company capitalizes all related direct costs of growing materials as well as other indirect costs of production such as utilities and supplies used in the growing process. Indirect labour for individuals involved in the growing and quality control process is also included, as well as amortization on production equipment and overhead costs to the extent it is associated with the growing space. All direct and indirect costs of biological assets are capitalized as they are incurred, and subsequently transferred to inventory at the point of harvest. Unrealized fair value gains on growth of biological assets are recorded in a separate line on the face of the statements of income and comprehensive income and subsequently transferred to inventory at the point of harvest. g. Assets held for sale Assets and liabilities held for disposal are no longer amortized and are presented separately in the statement of financial position at the lower of their carrying amount and fair value less costs to sell. An asset is regarded as held for sale if its carrying amount will be recovered principally through a sale transaction, rather than through continuing use. For this to be the case, the asset must be available for immediate sale and its sale must be highly probable. h. Capital assets Capital assets are stated at cost, net of accumulated amortization and accumulated impairment losses, if any. Amortization is calculated using the following terms and methods:
An item of equipment is derecognized upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying value of the asset) is included in the consolidated statements of income and comprehensive income in the year the asset is derecognized. The assets’ residual values and useful lives are reviewed at each financial year end and adjusted prospectively if appropriate. i. Intangible assets Intangible assets are stated at cost, net of accumulated amortization and accumulated impairment losses, if any. Amortization is calculated using the following terms and methods:
The estimated success of applications and useful life are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Following initial recognition, intangible assets with indefinite useful lives are carried at cost less any accumulated impairment losses. j. Goodwill Goodwill represents the excess of the purchase price paid for the acquisition of subsidiaries over the fair value of the net tangible and intangible assets acquired. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. k. Impairment of non-financial assets Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purpose of testing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating unit, or “CGU”). An impairment loss is recognized for the amount, if any, by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of the asset’s fair value less cost to sell and the value in use (being the present value of expected future cash flows of the asset or CGU). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the lesser of the revised estimate of recoverable amount and the carrying amount that would have been recorded had no impairment loss been previously recognized,with the exception of goodwill and indefinite lived intangible assets. l. Income taxes Income tax expense consisting of current and deferred tax expense is recognized in the consolidated statements of income and comprehensive income. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with regards to previous years. Deferred tax assets and liabilities and the related deferred income tax expense or recovery are recognized for deferred tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted or substantively enacted tax rates expected to apply when the asset is realized or the liability settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that substantive enactment occurs. A deferred tax asset is recognized to the extent that it is probable that future taxable income will be available against which the asset can be utilized. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. m. Earnings per share Basic earnings per share is calculated using the weighted average number of common shares outstanding during the year. The dilutive effect on earnings per share is calculated presuming the exercise of outstanding options, warrants, convertible debentures and similar instruments. It assumes that the proceeds of such exercise would be used to repurchase common shares at the average market price during the year. However, the calculation of diluted loss per share excludes the effects of various conversions and exercise of options and warrants that would be anti-dilutive. n. Share-based compensation The Company has an omnibus long-term incentive plan which includes issuances of stock options, restricted share units and deferred share units in place. The Company measures equity settled share-based payments based on their fair value at the grant date and recognizes compensation expense over the vesting period based on the Company’s estimate of equity instruments that will eventually vest. Fair value is measured using the Black-Scholes option pricing model. Expected forfeitures are estimated at the date of grant and subsequently adjusted if further information indicates actual forfeitures may vary from the original estimate. Any revisions are recognized in the consolidated statements of income and comprehensive income such that the cumulative expense reflects the revised estimate. o. Research and development Research costs are expensed as incurred. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development to use or sell the asset. Other development expenditures that do not meet the above criteria are recognized in the consolidated statements of income and comprehensive income as incurred. p. Financial instruments Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provision of the respective instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, other than financial assets and financial liabilities at FVTPL , are included in the initial carrying value of the related instrument and are amortized using the effective interest method. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss. Fair value estimates are made at the consolidated statement of financial position date based on relevant market information and information about the financial instrument. The Company has made the following classifications:
(i) FVTPL financial assets Financial assets are classified as FVTPL when the financial asset is held for trading or it is designated as FVTPL. Financial assets classified as FVTPL are stated at fair value with any resulting gain or loss recognized in the consolidated statements of income and comprehensive income. Transaction costs are expensed as incurred. (ii) Amortized cost financial assets Financial assets at amortized cost are non-derivative financial assets which are held within a business model whose objective is to hold assets to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A financial asset is initially measured at fair value, including transaction costs and subsequently at amortized cost. (iii) Impairment of financial assets Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting period. Financial assets are impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted. The carrying amount of all financial assets, excluding trade receivables, is directly reduced by the impairment loss. The carrying amount of trade receivables is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognized in the consolidated statements of income and comprehensive income. With the exception of FVOCI equity instruments, if, in a subsequent period, the amount of the impairment loss decreases and the decrease relates to an event occurring after the impairment was recognized; the previously recognized impairment loss is reversed through the consolidated statements of income and comprehensive income. (iv) Financial liabilities and other financial liabilities Financial liabilities are classified as either financial liabilities at FVTPL or at amortized cost. Financial liabilities at FVTPL are stated at fair value, with changes being recognized through the consolidated statements of income and comprehensive income. Other financial liabilities are initially measured at fair value, net of transaction costs, and are subsequently measured at amortized cost using the effective interest method, with interest expense recognized on an effective yield basis. (v) Embedded derivatives Embedded derivatives are separated from the host contract and accounted for separately if certain criteria are met. Derivatives are initially measured at fair value; any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes therein are recognised in profit or loss. (vi) Determination on fair value of long-term investments All long-term investments (other than Level 3 warrants) are initially recorded at the transaction price, being the fair value at the time of acquisition. Thereafter, at each reporting period, the fair value of an investment is adjusted using one or more of the valuation indicators described below. q. Critical accounting estimates and judgments The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, and revenue and expenses. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the review affects both current and future periods. Long-term investments and convertible notes receivable The determination of fair value of the Company’s long-term investments and convertible notes receivable at other than initial cost is subject to certain limitations. Financial information for private companies in which the Company has investments may not be available and, even if available, that information may be limited and/or unreliable. Use of the valuation approach described below may involve uncertainties and determinations based on the Company’s judgment and any value estimated from these techniques may not be realized or realizable. Company-specific information is considered when determining whether the fair value of a long-term investment or convertible notes receivable should be adjusted upward or downward at the end of each reporting period. In addition to company-specific information, the Company will take into account trends in general market conditions and the share performance of comparable publicly-traded companies when valuing long-term investments and convertible notes receivable. The fair value of long-term investments and convertible notes receivable may be adjusted if:
Adjustment to the fair value of a long-term investment and convertible notes receivable will be based upon management’s judgment and any value estimated may not be realized or realizable. The resulting values for non-publicly traded investments may differ from values that would be realized if a ready market existed. Biological assets and inventory Management is required to make a number of estimates in calculating the fair value less costs to sell of biological assets and harvested cannabis inventory. These estimates include a number of assumptions such as estimating the stage of growth of the cannabis, harvesting costs, sales price, and expected yields. Estimated useful lives, impairment considerations and amortization of capital and intangible assets Amortization of capital and intangible assets is dependent upon estimates of useful lives based on management’s judgment. Goodwill and indefinite life intangible asset impairment testing requires management to make estimates in the impairment testing model. On an annual basis, the Company tests whether goodwill and indefinite life intangible assets are impaired. Impairment of definite long-lived assets is influenced by judgment in defining a CGU and determining the indicators of impairment, and estimates used to measure impairment losses The recoverable value of goodwill, indefinite and definite long-lived assets is determined using discounted future cash flow models, which incorporate assumptions regarding future events, specifically future cash flows, growth rates and discount rates. Share-based compensation The fair value of share-based compensation expenses are estimated using the Black-Scholes option pricing model and rely on a number of estimates, such as the expected life of the option, the volatility of the underlying share price, the risk free rate of return, and the estimated rate of forfeiture of options granted. Business combinations Judgement is used in determining whether an acquisition is a business combination or an asset acquisition. In determining the allocation of the purchase price in a business combination, including any acquisition-related contingent consideration, estimates including market based and appraisal values are used. The contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or liability is remeasured at subsequent reporting dates in accordance with IAS 39, or IAS 37, as appropriate, with the corresponding gain or loss being recognized in profit or loss. The Company measures all assets acquired and liabilities assumed at their acquisition-date fair values. Non-controlling interests in the acquiree are measured on the basis of the non-controlling interests’ proportionate share of this equity in the acquiree’s identifiable net assets. Acquisition-related costs are recognized as expenses in the periods in which the costs are incurred and the services are received (except for the costs to issue debt or equity securities which are recognized according to specific requirements). The excess of the aggregate of (a) the consideration transferred to obtain control, the amount of any non-controlling interest in the acquire over (b) the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed, is recognized as goodwill as of the acquisition date. Convertible debentures The fair value of the convertible debentures is determined using the quoted price in the over-the-counter broker market. As the convertible debentures are classified as FVTPL, the subsequent interest as well as change in the fair value will flow through the consolidated statements of comprehensive income. r. New standards and interpretations applicable effective June 1, 2018 IFRS 9 - Financial Instruments; Classification and Measurement, effective for annual periods beginning on or after January 1, 2018, with early adoption permitted, introduces new requirements for the classification, measurement and derecognition of financial instruments and introduces a new impairment model for financial assets. Under IFRS 9, financial instruments are initially measured at fair value plus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs. Subsequently, all assets within scope of IFRS 9 are measured at:
The classification is based on whether the contractual cash flows give rise to payments on specified dates that are solely payments of principal and interest (the “SPPI test”), and the objective of the Company’s business model is to hold assets only to collect cash flows, or to collect cash flows and to sell (the “Business Model test”). Financial assets are required to be reclassified only when the business model under which they are managed has changed. All reclassifications are to be applied prospectively from the reclassification date. The impairment requirements under IFRS 9 are based on an expected credit loss (“ECL”) model, replacing the IAS 39 incurred loss model. The expected credit loss model applies to debt instruments recorded at amortized cost or at FVOCI, such as loans, debt, securities and trade receivables, lease receivables and most loan commitments and financial guarantee contracts. The following table summarizes the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of the Company’s financial assets and financial liabilities:
There were no other changes on adoption aside from the above classification changes. IFRS 15 - Revenue from Contracts with Customers; effective for annual periods beginning on or after January 1, 2018, specifies how and when to recognize revenue, based on five-step model, and enhances relevant disclosures to be applied to all contracts with customers. The Company has applied IFRS 15 retrospectively and determined that there is no change to the comparative periods or transitional adjustments required as a result of the adoption of this standard. The Company’s accounting policy for revenue recognition under IFRS 15 is as follows: To recognize revenue under IFRS 15, the Company applies the following five steps:
Revenue from the direct sale of goods to customers for a fixed price is recognized when the company transfers control of the good to the customer. s. New standards and interpretations issued but not yet adopted IFRS 16 – Leases; in January 2016, the IASB issued IFRS 16, which specifies how an IFRS reporter will recognise, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. Lessors continue to classify leases as operating or finance, with IFRS 16’s approach to lessor accounting substantially unchanged from its predecessor, IAS 17. IFRS 16 is effective for annual reporting periods beginning on or after January 1, 2019, and a lessee shall either apply IFRS 16 with full retrospective effect or alternatively not restate comparative information but recognise the cumulative effect of initially applying IFRS 16 as an adjustment to opening equity at the date of initial application. Based on its current assets, relationship with other entities interests and investments, no significant impact is anticipated from the new standard. There are no other standards that are not yet effective and that would be expected to have a material impact on the Company in the current or future reporting periods and on foreseeable future transactions. The Company has reclassified certain immaterial items on the comparative consolidated statements of financial position, consolidated statements of income and comprehensive income, and consolidated statements of cash flows to improve clarity.
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Marketable securities |
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Marketable securities | 4. Marketable securities Marketable securities are classified as fair value through profit or loss, and are comprised of:
The cost of marketable securities as at May 31, 2019 was $20,907 (May 31, 2018 – $45,863). During the year ended May 31, 2019, the company divested of certain marketable securities for proceeds of $24,685 (2018 - $47,495), resulting in a gain (loss) on disposal of $18 (2018 - $(608)), and re-invested $nil (2018 - $7,365). During the year ended May 31, 2019, the Company recognized a (loss) of $(178) (2018 - $(2,155)) on its marketable securities portfolio, of which $(196) (2018 - $(1,547)) represented unrealized fair value adjustments.
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Prepaids and other current assets |
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Prepaids and other current assets | 5. Prepaids and other current assets Prepaids and other current assets are comprised of:
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Inventory |
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Inventory | 6. Inventory Inventory is comprised of:
During the year ended May 31, 2019, the Company recorded $35,548 (2018 - $8,692) of production costs. Included in production costs for the year ended May 31, 2019 is $1,682 of cannabis oil conversion costs (2018 - $241), $142 related to the cost of accessories (2018 - $236), and amortization of $4,133 (2018 - $1,715). The Company also included $4,723 of amortization which remains in inventory for the year ended May 31, 2019 (2018 - $978) related to capital assets utilized in production. During the year ended May 31, 2019, the Company expensed $27,724 (2018 –$10,327) of fair value adjustments on the growth its biological assets included in inventory sold. The Company holds 6,309.9 kilograms of harvested cannabis (May 31, 2018 – 3,221.3 kgs), 1,908.0 kilograms of harvested cannabis trim (May 31, 2018 – 702.0 kgs) and 28,458.1 litres of cannabis oils or 4,949.2 kilograms equivalent in various stages of production (May 31, 2018 – 7,724.7 litres or 1,716.6 kilograms equivalent), 982.0 litres of cannabis oils used in softgel capsules or 218.2 kilograms equivalent at May 31, 2019 (May 31, 2018 – nil).
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Biological assets |
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Biological assets | 7. Biological assets Biological assets are comprised of:
The Company values cannabis plants at cost, which approximates fair value from the date of initial clipping from mother plants until half way through the flowering cycle of the plants. Measurement of the biological transformation of the plant at fair value less costs to sell begins in the fourth week prior to harvest and is recognized evenly until the point of harvest. The number of weeks in the growing cycle is between twelve and sixteen weeks from propagation to harvest. The Company has determined the fair value less costs to sell of harvested cannabis and harvested cannabis trim to be $3.50 and $2.75 per gram respectively, upon harvest for greenhouse produced cannabis (May 31, 2018 – $3.75 and $3.00 per gram) and $4.00 and $3.25 per gram respectively (May 31, 2018 - $4.25 and $3.50 per gram), upon harvest for indoor produced cannabis. The effect of the fair value less cost to sell over and above historical cost was an increase in non-cash value of biological assets and inventory of $40,607 during the year ended May 31, 2019 (2018 – $23,302). The fair value of biological assets is determined using a valuation model to estimate expected harvest yield per plant applied to the estimated price per gram less processing and selling costs. Only when there is a material change from the expected fair value used for cannabis does the Company make any adjustments to the fair value used. During the year, there was no material change to these inputs and therefore there has been no change in the determined fair value per plant. In determining the fair value of biological assets, management has made the following estimates in this valuation model:
Sales price used in the valuation of biological assets is based on the average selling price of all cannabis products and can vary based on different strains being grown as well as the proportion of sales derived from wholesale compared to retail. Selling costs vary depending on methods of selling and are considered based on the expected method of selling and the determined additional costs which would be incurred. Expected yields for the cannabis plant is also subject to a variety of factors, such as strains being grown, length of growing cycle, and space allocated for growing. Management reviews all significant inputs based on historical information obtained as well as based on planned production schedules. Management has quantified the sensitivity of the inputs and determined the following:
These inputs are level 3 on the fair value hierarchy and are subject to volatility in market prices and several uncontrollable factors, which could significantly affect the fair value of biological assets in future periods.
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Related party transactions |
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Related party transactions | 8. Related party transactions During the prior quarter, the Company disposed of its remaining shares in Liberty Health Sciences Inc. (“Liberty”) (Note 13). The Company previously funded a portion of the Canadian operating costs of Liberty, for which Liberty reimbursed the Company quarterly. Liberty was considered a related party because certain officers and directors of Aphria were directors of Liberty. In January 2019, those directors resigned from Liberty’s and the Company's board and the Company ceased its relationship with Liberty. The Company purchased certain electrical generation equipment from and pays rent to a company owned by a former director. In March 2019, the director resigned his officer and director position with the Company and was no longer considered a related party. Key management personnel compensation for the year ended May 31, 2019 and 2018 was comprised of:
Directors and officers of the Company control 0.1% or 135,942 of the voting shares of the company. During the year ended May 31, 2019, the Company appointed Mr. Irwin Simon as Interim CEO and Chair of the Board. Mr. Simon’s compensation for the combined role is $1,100 annually, paid on a consultancy basis.On February 24, 2019, the Board of Aphria declared, in accordance with the Omnibus Incentive Plan, 1,000,000 stock options and 25,000 restricted share units to Mr. Simon, which vested immediately. During the year ended May 31, 2019 certain officers and non-independent directors retired from the Company. No amounts were paid to the retired officers and directors as part of their retirement. In addition, compensation for the Board of Directors were amended to a flat-fee $300 annually, with $150 paid in cash and $150 in Deferred Share Units under the Company’s Omnibus Plan each, plus a one-time award of 7,500 Restricted Share Units each.
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Capital assets |
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Capital assets | 9. Capital assets
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Intangible Assets |
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Intangible Assets | 10. Intangible assets
Included in Licences, permits & applications is $273,579 of indefinite lived intangible assets. |
Business Acquisitions |
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Business Acquisitions | 11. Business Acquisitions Acquisition of Broken Coast Cannabis Ltd. On February 13, 2018, the Company entered into a share purchase agreement to purchase all of the shares of Cannan Growers Inc. (“Cannan”), a holding company owning shares of Broken Coast Cannabis Ltd. (“Broken Coast”), and to acquire the remaining shares for a combined total of 99.86% of the issued and outstanding shares of Broken Coast. The combined purchase price was $214,168 satisfied through the issuance of an aggregate 14,373,675 common shares. The share purchase agreement entitled the Company to control over Broken Coast on February 1, 2018, which became the effective acquisition date. In August 2018, the Company came to terms with the holder of the remaining 0.14% of the issued and outstanding shares of Broken Coast. In exchange for purchasing the remaining shares, the Company issued 19,963 shares to the holder. The table below summarizes the fair value of the assets acquired and the liabilities assumed at the acquisition date:
Net income and comprehensive net income within the prior year for the Company would have been higher by approximately $2,268 if the acquisition had taken place on June 1, 2017. In connection with this transaction, the Company expensed transaction costs of $1,643. Acquisition of Nuuvera Corp. On March 23, 2018, the Company completed a definitive arrangement agreement (the “Arrangement Agreement”) pursuant to which the Company acquired Nuuvera, by way of a court-approved plan of arrangement, under the Business Corporations Act (Ontario). The Company acquired 100% of the issued and outstanding common shares (on a fully diluted basis) of Nuuvera for a total consideration of $0.62 in cash plus 0.3546 of an Aphria share for each Nuuvera share held. All of Nuuvera’s outstanding options were exchanged for an equivalent option granted pursuant to Aphria’s stock option plan (each, a “Replacement Option”) to purchase from Aphria the number of common shares (rounded to the nearest whole share) equal to: (i) the exchange ratio multiplied by (ii) the number of Nuuvera shares subject to such Nuuvera Option. Each such Replacement Option shall provide for an exercise price per common share (rounded to the nearest whole cent) equal to: (i) the exercise price per Nuuvera share purchasable pursuant to such Nuuvera Option; divided by (ii) the exchange ratio. The table below summarizes the fair value of the assets acquired and the liabilities assumed at the effective acquisition date:
Net income and comprehensive net income within the prior year for the Company would have been lower by approximately $19,611 if the acquisition had taken place on June 1, 2017. In connection with this transaction, the Company expensed transaction costs of $3,439. Acquisition of LATAM Holdings Inc. On July 17, 2018, the Company signed a share purchase agreement with Scythian Biosciences Corp. (“Scythian”) to purchase 100% of the issued and outstanding shares of LATAM Holdings Inc. (“LATAM Holdings”); a direct wholly-owned subsidiary of Scythian. As outlined in the share purchase agreement, the negotiated purchase price was to be settled with the issuance of 15,678,310 shares of the Company valued on July 17, 2018 at $193,000 and the assumption of $1,000 USD ($1,310 CAD) short-term liabilities. The acquisition of LATAM Holdings closed on September 27, 2018. Therefore, in accordance with IFRS 3 - Business Combinations, the equity consideration transferred was measured at fair value at the acquisition date, which is the date control was obtained, which in this case was determined to be September 27, 2018. The fair value of the consideration shares on September 27, 2018 was $273,900. LATAM Holdings, through other subsidiaries, provides the Company with access to the emerging cannabis markets in Latin America and the Caribbean. Through this acquisition, the Company secured key licenses in Colombia, Argentina and Jamaica which is anticipated to provide first mover advantage in these countries. In addition, the Company acquired an option and rights of first refusal to purchase a Brazilian incorporated entity, with the option and right of first refusal vesting only upon the entity obtaining a licence to cultivate and distribute cannabis lawfully in Brazil. The Company is in the process of assessing the fair value of the net assets acquired and, as a result, the fair value of the net assets acquired may be subject to adjustments pending completion of final valuations and post-closing adjustments. The table below summarizes the preliminary estimated fair value of the assets acquired and the liabilities assumed at the effective acquisition date:
Net income and comprehensive net income for the Company would have been lower by approximately $4,556 for the year ended May 31, 2019, if the acquisition had taken place on June 1, 2018. In connection with this transaction, the Company expensed transaction costs of $1,133. Acquisition of CC Pharma GmbH On November 7 ,2018, the Company signed a share purchase agreement to acquire 100% of the issued and outstanding shares of CC Pharma. The purchase price was cash consideration of €18,920 ($28,775 CAD) and additional cash consideration of up to €23,500 ($35,741 CAD) contingent on CC Pharma obtaining a specified EBITDA target. The acquisition of CC Pharma closed on January 9, 2019. CC Pharma is a leading distributor of pharmaceutical products to pharmacies in Germany as well as throughout Europe. The acquisition of CC Pharma provides the Company access to the cannabis markets in Germany and ultimately pan-European platforms. The Company is in the process of assessing the fair value of the net assets acquired and, as a result, the fair value of the net assets acquired may be subject to adjustments pending completion of final valuations and post-closing adjustments. The table below summarizes the preliminary estimated fair value of the assets acquired and the liabilities assumed at the effective acquisition date:
Revenue and net income and comprehensive net income for the Company would have been higher by approximately $367,200 and $9,955 respectively, for the year ended May 31, 2019, if the acquisition had taken place on June 1, 2018. In connection with this transaction, the Company expensed transaction costs of $595. Goodwill is comprised of:
During the year ended May 31, 2019, an independent third party completed their review of the LATAM acquisition, which provided the Company with new information. In accordance with IAS 36, the Company completed an impairment analysis and determined the fair value of the assets based on a discounted cash flow approach for the three operating entities acquired in the transaction; Colcanna S.A.S (“Colcanna”), ABP, S.A. (“ABP”) and Marigold Projects Jamaica Limited (“Marigold”). As a result of new information obtained from the independent third party’s review, the Company determined some changes in the projected cashflows were appropriate and adjusted the discount rates used in the discounted cash flow approach from 31.0%, 21.3%, and 36.5% to 33.0%, 23.3%, and 38.5% for Colcanna, ABP and Marigold respectively. Based on the determined fair value, the Company recognized $50,000 in impairment of goodwill. Also included in impairment is £4,600 GBP ($8,039 CAD) related to uncollectible promissory notes receivable (Note 15) for a total impairment of $58,039. |
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Convertible notes receivable | 12. Convertible notes receivable
Copperstate Farms Investors, LLC On May 15, 2018, the Company entered into an amendment agreement with CSF which extended the maturity date and automatic conversion date to June 30, 2018, which was subsequently extended into July. As at May 31, 2019, this note was paid in full. HydRx Farms Ltd. (d/b/a Scientus Pharma) On August 14, 2017, Aphria purchased $11,500 in secured convertible debentures of Scientus Pharma (“SP”). The convertible debenture bears interest at 8%, paid semi-annually, matures in two years and includes the right to convert the debenture into common shares of SP at $2.75 per common share at any time before maturity. SP maintains the option of forced conversion of the convertible debenture if the common shares of SP trade on a stock exchange at a value of $3.02 or more for 30 consecutive days. The Company maintains a first charge on all assets of SP. In October 2018, the Company agreed to share its first charge on all assets of SP with a third party on a pari passu basis. The Company understands that the third party has not completed a transaction with SP. As at May 31, 2019, the third party has not completed its investment. As at May 31, 2019, the fair value of the Company's secured convertible debenture was $11,500, which resulted in a fair value loss for the year ended May 31, 2019 of $4,629. Fire & Flower Inc. On July 26, 2018, Aphria purchased $10,000 in unsecured convertible debentures of Fire & Flower Inc. (“F&F”). The convertible debentures bear interest at 8% per annum compounded, accrued and paid semi-annually in arrears. The debentures mature on July 31, 2020, at which point, they automatically convert into common shares of F&F at the lower of $1.15 and the share price on July 31, 2020. The debentures may also be converted into a loan on July 31, 2020 bearing interest at 12%, at the holder’s option. As at May 31, 2019, the fair value of the unsecured convertible debenture was $11,166, which resulted in a fair value loss for the year ended May 31, 2019 of $1,166. 10330698 Canada Ltd. (d/b/a Starbuds) On December 28, 2018, Aphria purchased $5,000 in secured convertible debentures of Starbuds. The convertible debentures bear interest at 8.5% per annum accruing daily due on the December 28, 2020. The debentures are secured against the assets of Starbuds. The debentures and any accrued and unpaid interest are convertible into common shares for $0.50 per common share and mature on December 28, 2020. As at May 31, 2019, the fair value of the Company's secured convertible debenture was $5,204, which resulted in a fair value loss for the year ended May 31, 2019 of $204. High Tide Inc. On April 10, 2019, Aphria purchased $4,500 in unsecured convertible debentures of High Tide Inc. (“High Tide”). The convertible debentures bear interest at 10% per annum, payable annually up front in common shares of High Tide based on the 10‑day volume weighted average price (the “Debentures”). The debentures mature on April 10, 2021, they are convertible into common shares of High Tide at a price of $0.75 at the option of the holder.In addition to the debentures the Company received 6,000,000 warrants in High Tide as part of the purchase of the unsecured convertible debentures (Note 15). As at May 31, 2019, the fair value of the unsecured convertible debenture was $4,360, which resulted in a fair value loss for the year ended May 31, 2019 of $140. Convertible notes receivable During the year ended May 31, 2019, the Company purchased a total of $19,500 (2018 - $14,001) in convertible notes. The unrealized (loss) gain on convertible notes receivable recognized in the results of operations amounts to $(3,399) for the year ended May 31, 2019 (2018 - $5,943). The fair value was determined using the Black-Scholes option pricing model using the following assumptions: the risk-free rate of 0.85- 1.51%; expected life of the convertible note; volatility of 70% based on comparable companies; forfeiture rate of nil; dividend yield of nil; and, the exercise price of the respective conversion feature.
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Interest in equity investees | 13. Interest in equity investees
Althea Company Pty Ltd. (“Althea”) As at May 31, 2019 the Company held 50,750,000 common shares of Althea (May 31, 2018 - 4,500) representing an ownership interest of 25% (May 31, 2018 - 37.5%). The following table summarizes the financial of the Company’s associate and reflects the amounts presented in the financial statements. of Althea, amended to reflect adjustments made by the Company when using the equity method, including fair value adjustments and modifications for differences in accounting policy.
For the period from April 1, 2018 to March 31, 2019 the investee, Althea, reported a net loss of $4,368 AUD on its financial statements. In accordance with the equity method, the Company recorded a loss of $1,123, for the year ended May 31, 2019, from its investee relative to its ownership of the outstanding common shares at the time. During the year, Althea completed a share split of 7,500 shares for each existing share. Althea also issued 101,310,000 common shares for total proceeds of $19,650 AUD. The Company participated in the financing of Althea contributing $3,400 AUD ($3,258 CAD) of the total $19,650 AUD raised. This additional raise reduced the Company’s ownership interest in Althea from 37.5% to 25% and accordingly, the Company recognized a gain on dilution of $2,210. The fair value of the shares as at May 31, 2019 is $36,032 AUD ($33,776 CAD) based on the closing share price of Althea.
Liberty Health Sciences Inc. In February 2018, the Company entered into a call/put obligation (“Obligation Agreement”) for the remaining shares held in Liberty, which were subject to CSE mandatory escrow requirements. As each new tranche of shares became freely trading, the Obligation Agreement resulted in the buyers acquiring the newly freely trading shares at an 18% discount to the market price of Liberty, based on Liberty’s 10‑day volume weighted trading price. The Obligation Agreement included an opt-out for Aphria’s benefit, in the event that the Toronto Stock Exchange amended their regulations such that it permitted investments by Canadian companies in U.S. based cannabis businesses, and in such instance, the Obligation Agreement would be automatically terminated. In exchange for the opt-out, the Company agreed to pay the buyers a $2,500 termination fee. Based on the terms of the Obligation Agreement, the Company determined that the remaining shares held in Liberty met the requirements under IFRS 5 and were reclassified from interest in equity investees to assets held for sale. The Company ceased accounting for the investment as an equity investment as of November 30, 2017 and transferred the carrying value to assets held for sale. In July 2018, 16,029,615 shares were released from escrow and sold as part of the Obligation Agreement. The Company received gross proceeds of $11,514 and recognized a gain on sale of equity investee of $9,880. As part of the transaction, the Company paid $480 in exchange for an option to buy back the shares at $1.00 a share, subject to certain downside risk protection which results in the purchaser sharing a portion of the difference between the share price on the day the option is exercised and the exercise price, provided the share price exceeds $1.25. The option to repurchase the shares was subject to the following conditions (collectively, the enumerated conditions (1) through (5), the “Conditions”):
This option was initially included in long-term investments (Note 14). During the prior quarter, the Company and the third party agreed to terminate the Obligation Agreement, in exchange for a $1,000 termination fee. The Company then entered into a share purchase agreement to divest of the remaining 64,118,462 Liberty shares in exchange for consideration in the form of a promissory note in the amount of $59,098, bearing interest at a rate of 12% due in 5 years (Note 15). As a security for the promissory note, the Liberty shares were placed in trust with an escrow agent. The purchaser was able to remove the Liberty shares from the escrow at any time by paying off the promissory note. In the event that the Company enforces the security, the escrow agent was to return the shares to the Company, provided that the Conditions were met. In the event they were not met, the escrow agent was to transfer the securities to a third-party investment bank for liquidation, with the proceeds of liquidation delivered to the Company. Simultaneously with this sale, the Company entered into an option agreement to repurchase the Liberty shares for the amount of the promissory note (Note 14). The Company agreed to pay an annual fee equal to 12.975% of the face value of the promissory note to maintain this option (Note 20). The option to repurchase the shares was subject to the Conditions described above. During the year ended May 31, 2019, the Company reported a gain on sale of equity investee of $57,351. On February 19, 2019, the Company and the third party agreed to liquidate the promissory note, security agreement and the option in exchange for a cash payment of $47,448 and a contingent payment up to $10,000, in the event the third party monetizes the assets held under the option within six (6) months of the transaction date. As the satisfaction of these conditions require actions outside of the Company’s control, the Company has not allocated any value to the contingent consideration. For the year ended May 31, 2018, the Company reported a total gain on dilution of ownership in equity investee of $7,535. Prior to the Company no longer recording Liberty as an equity investee, Liberty reported a net loss of $24,671 and a net comprehensive loss of $26,798. In accordance with the equity method, the Company recorded a loss of $9,281 and other comprehensive loss of $801.
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Long-term investments |
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Long-term investments | 14. Long-term investments
The fair value attached to warrants in both Level 2 and Level 3 were determined using the Black-Scholes option pricing model using the following assumptions: risk-free rate of 0.75‑1.70% on the date of grant; expected life of 1 and 2 years; volatility of 70% based on comparable companies; forfeiture rate of 0%; dividend yield of nil ; and, the exercise price of the respective warrant. CannaRoyalty Corp. (“CR”) During the year ended May 31, 2019, the Company sold its remaining 750,000 shares of CR for proceeds of $4,111, resulting in an accounting gain of $346 (Note 28). MassRoots, Inc. During the year ended May 31, 2019, the Company sold its remaining 500,000 common shares in MassRoots, Inc. for proceeds of $1, resulting in a loss of $163 (Note 28). Tetra Bio-Pharma Inc. During the year ended May 31, 2019, the Company purchased an additional 6,900,000 units of Tetra Bio-Pharma Inc. at a total cost of $7,107. Each unit is comprised of one Class A common share and one common share purchase warrant with an exercise price of $1.29 expiring November 2021. During the year, the Company purchased 10,000,000 common shares of Tetra Bio-Pharma Inc. at a total cost of $9,650. The Company owns 26,900,000 common shares and 6,900,000 warrants at a cost of $19,057, with a fair value of $17,216 as at May 31, 2019. Hiku Brands Company Ltd (formerly TS BrandCo Holdings Inc.) During the year ended May 31, 2019, the Company exercised its 7,993,605 warrants at $2.10 per warrant. Subsequent to exercising its warrants the Company sold all of its shares of Hiku in exchange for $48,153, resulting in a gain on disposal of $15,902 (Note 28). As part of the purchase of Hiku by a third party, the third party terminated the Hiku supply agreement with the Company. The third party purported to terminate the Tokyo Smoke supply agreement with the Company at approximately the same time. Scythian Biosciences Inc. During the year ended May 31, 2019, the Company purchased 123,800 common shares of Scythian at a total cost of $298. During the year, the Company sold its 2,812,300 common shares and 672,125 common share purchase warrants in Scythian in exchange for $6,609, resulting in a loss on disposal of $2,953 (Note 28). National Access Cannabis During the year ended May 31, 2019, the Company purchased 10,344,505 common shares of National Access Cannabis Corp. at a total cost of $10,481. The Company owns 11,344,505 common shares in NAC at a cost of $11,574, with a fair value of $7,941 as at May 31, 2019. Aleafia Health Inc. (formerly Emblem Corp.) (“Aleafia”) During the year end May 31, 2019, the Company entered into a 5‑year supply agreement with Emblem Corp. As part of the supply agreement the Company received 6,952,169 common shares to satisfy a deposit valued at $10,000. During the year, Emblem Corp. was purchased by a third party, Aleafia Health Inc. (“Aleafia”). The Company’s shares in Emblem Corp. translated into 5,823,831 shares of Aleafia. The Company owns 5,823,831 common shares in Aleafia at a cost of $10,000, with a fair value of $8,445 as at May 31, 2019. The shares are subject to various hold restrictions tied to terms within the supply agreement. Rapid Dose Therapeutics Inc. (“RDT”) In August 2018, the Company entered into a subscription agreement with RDT for the purchase of 7,200,000 common shares, for a total cost of $5,400, with a fair value of $5,832 as at May 31, 2019. During the year, RDT’s common shares began trading on the Canadian Stock Exchange. The Company reclassified this investment from level 3 on fair value hierarchy to level 1 during the year. Fire & Flower Inc. In October 2018, the Company entered into a subscription agreement with Fire & Flower Inc. for the purchase of 2,277,000 common shares, for a total cost of $3,416 with a fair value of $2,823 as at May 31, 2019. During the year, Fire & Flower Inc.’s common shares began trading on the Toronto Stock Exchange Venture. High Tide Inc. During the year ended May 31, 2019, the Company received 6,000,000 warrants in High Tide as part of the purchase of convertible debentures (Note 12), and 943,396 common shares of High Tide Inc. as a payment for interest on the convertible notes receivable (Note 12). The Company owns 943,396 common shares and 6,000,000 warrants in High Tide Inc. at a cost of $450, with a fair value of $340 as at May 31, 2019. Each warrant is exercisable at $0.85 per warrant expiring April 18, 2021. US legalization options During the year ended May 31, 2019, the Company purchased an option to acquire 16,029,615 Liberty shares at $1.00 a share, expiring January 23, 2020. This option includes specific downside risk protection in which the purchaser will share a portion of the difference between the share price on the day the option is exercised and the exercise price, provided the share price exceeds $1.25. The cost of the option was $480. The option to repurchase the shares was subject to the Conditions described in note 13. During the year, the Company entered into an option agreement to repurchase 64,118,462 Liberty shares in exchange for settlement of a promissory note receivable, expiring September 6, 2023 (Note 13). The cost of this option was a gross annual fee of $7,668, however the Company also received $7,092 of interest income associated with the promissory note receivable, resulting in a net annual cost to the Company of $576. The option to repurchase the shares was subject to the Conditions described in note 13. During the year, the Company liquidated the option and promissory note for cash proceeds of $47,448, with a contingent fee owing of up to $10,000 upon satisfaction of certain conditions. As the satisfaction of these conditions require actions outside of the Company’s control, the Company has not allocated any value to the contingent consideration. During the year, the Company contributed assets with a fair value of $55,000 to GA Opportunities Corp. Simultaneously, the Company entered into an option agreement to purchase all of the assets owned by GA Opportunities Corp. at a cost of $55,000, expiring September 24, 2023. The cost of this option is a gross fee of $6,765, however the Company also receives $6,600 of interest income associated with the promissory note receivable, resulting in a net annual cost to the Company of $165. In the event the securities in the fund represent direct or indirect ownership of, or investment in, entities engaging in activities related to the cultivation, distribution or possession of cannabis in the United States, the option to purchase the securities was subject to the Conditions described in note 13. During the year, the Company liquidated the option and promissory note for cash proceeds of $89,000, with $39,000 of the proceeds due within six months (Note 28 and Note 15). Copperstate Farms, LLC (“Copperstate”) and Copperstate Farms Investors, LLC (“CSF”) During the year, the Company received $20,000 from the sale of the shares of Copperstate and CSF, which were previously held as available for sale. Resolve Digital Health Inc. (“Resolve”) The Company owns 2,200,026 common shares and 2,200,026 warrants in Resolve at a total cost of $1,000, with a fair value of $1,382 as at May 31, 2019. The Company determined the fair value of its investment based on its net realizable value. Each warrant is exercisable at $0.65 per warrant expiring December 1, 2021. Green Acre Capital Fund I The Company committed and invested $2,000 to Green Acre Capital Fund I. The Company determined the fair value of its investment, based on its proportionate share of net assets, to be $4,290 as at May 31, 2019. During the year, the Company received a return of capital of $700 from this investment. Green Acre Capital Fund II During the year, the Company committed to a $15,000 investment in Green Acre Capital Fund II, and as of the balance sheet date, has funded $3,000. During the current quarter, the Company and Green Acre Capital Fund II agreed to end the Company’s involvement with the fund. The Company and Green Acre Capital Fund II agreed that the Company would no longer be committed to fund the remaining amount of its investment and in exchange, the Company agreed to sell its interest in the fund to the limited partners for $500, resulting in a loss of 2,500 (Note 28). Green Tank Holdings Corp. (“Green Tank”) During the year Green Tank completed a 12:1 share split, which resulted in the Company obtaining an additional 1,082,675 shares at no additional cost. The Company purchased an additional 359,208 shares of Green Tank for a cost of $920 USD ($1,240 CAD). The Company owns 1,540,308 preferred shares in Green Tank for a total cost of $1,420 USD ($1,890 CAD), with a fair value of $3,943 USD ($5,334 CAD). The Company determined the fair value of its investment, based on Green Tank’s most recent financing. IBBZ Krankenhaus GmbH Klinik Hygiea (“Krankenhaus”) The Company owns 25.1% of Krankenhaus, which is the owner and operator of Berlin-based Schöneberg Hospital, for €1,294 ($1,956 CAD). Through this investment, the Company is entitled to 5% of the net income (loss) for the years 2018 to 2021, and 10% of the net income (loss) for the period thereafter. The Company determined that the fair value of its investment, based on Krankenhaus’ most recent financing at the same price, is equal to its carrying value. The Company recognized a loss from the change in fair value of $(5) due to changes in the foreign exchange rate. Greenwell Brands GmbH (“Greenwell”) In September 2018, the Company entered into an investment and shareholder agreement with Greenwell for the purchase of 1,250 common shares, for a total cost of €100 ($152 CAD). The Company determined that the fair value of its investment, based on the most recent financing at the same price, is equal to its carrying value. HighArchy Ventures Ltd. In October 2018, the Company entered into a subscription agreement with HighArchy Ventures Ltd. for the purchase of 1,999 Class A shares and 1,999 Class B shares, for a total cost of $9,995. During the year HighArchy Ventures Ltd. completed a share split of 10,000 to 1.The Company determined that the fair value of its investment, based on the most recent financing at the same price, is equal to its carrying value.
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Promissory notes receivable |
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Promissory notes receivable | 15. Promissory notes receivable
During the year, the Company impaired the promissory note receivable of £4,600 GBP to $nil (Note 11).
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Income taxes and deferred income taxes |
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Income taxes and deferred income taxes | 16. Income taxes and deferred income taxes A reconciliation of income taxes at the statutory rate with the reported taxes is as follows:
The following table summarizes the components of deferred tax:
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Bank indebtedness |
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Bank indebtedness | |
Bank indebtedness | 17. Bank indebtedness The Company secured an operating line of credit in the amount of $1,000 which bears interest at the lender’s prime rate plus 75 basis points. As of the May 31, 2019, the Company has not drawn on the line of credit. The operating line of credit is secured by a first charge on the property at 265 Talbot St. West, Leamington, Ontario and a first ranking position on a general security agreement.
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Promissory note payable |
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Promissory note payable | 18. Promissory note payable During the prior year, the Company entered into a promissory note with Althea for $700 AUD ($686), as part of the purchase of Althea common shares (Note 14), the note is due and payable on December 31, 2020. The Company reached an agreement with Althea where the promissory note amount will be used by Althea to purchase products from the Company in connection with a supply agreement entered into in September 2017.
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Long-term debt | 19. Long-term debt
Total long-term debt repayments are as follows:
The term loan of $24,022 was entered into on July 27, 2018 and is secured by a first charge on the property at 223, 231, 239, 265, 269, 271 and 275 Talbot Street West, Leamington Ontario, a first position on a general security agreement, and an assignment of fire insurance to the lender. Principal payments started on the term loan in August 2018. The effective interest rate during the year was 4.68%. The term loan of $23,352 was entered into on May 9, 2017 and is secured by a first charge on the property at 265 Talbot Street West, Leamington Ontario, a first position on a general security agreement, and an assignment of fire insurance to the lender. Principal payments started on the term loan in March 2018. The term loan of $946 and mortgage payable of $3,380 were entered into on July 22, 2016 and are secured by a first charge on the property at 265 Talbot Street West, Leamington, Ontario and a first position on a general security agreement. The vendor take-back mortgage payable of $1,305, owed to a former director of the Company, was entered into on June 30, 2016 in conjunction with the acquisition of the property at 265 Talbot Street West. The mortgage is secured by a second charge on the property at 265 Talbot Street West, Leamington, Ontario. The Company acquired term loans of $3,000 and $1,201, and a mortgage payable of $1,713 as part of the acquisition of Broken Coast (Note 11). These loans and mortgages were paid in full during the prior year. The Company acquired term loans initially up to €17,000 ($25,460 CAD) as part of the acquisition of CC Pharma (Note 11). As at May 31, 2019, the Company had amounts outstanding of €9,500 ($14,338 CAD). These term loans are secured against the distribution inventory held by CC Pharma.
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Convertible debentures |
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Convertible debentures | 20. Convertible debentures
The convertible debentures were entered into in April 2019, the unsecured convertible debentures in the principal amount of $350,000 USD are due in five years from issuance (the “Notes”). The Notes bear interest at a rate of 5.25% per annum, payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2019. The Notes are an unsecured obligation and ranked senior in right of payment to all indebtedness that is expressly subordinated in right of payment to the Notes. The Notes will rank equal in right of payment with all liabilities that are not subordinated. The Notes are effectively junior to any secured indebtedness to the extent of the value of the assets securing such indebtedness. Holders of the Notes may convert all or any portion of their Notes, in multiples of $1 principal amount, at their option at any time between December 1, 2023 to the maturity date. The initial conversion rate for the Notes will be 106.5644 common shares of Aphria per $1 USD principal amount of Notes, which will be settled in cash, common shares of Aphria or a combination thereof, at Aphria’s election. This is equivalent to an initial conversion price of approximately $9.38 per common share, subject to adjustments in certain events. In addition, holders of the Notes may convert all or any portion of their Notes, in multiples of $1 principal amount, at their option at any time preceding December 1, 2023, if:
The Company may not redeem the Notes prior to June 6, 2022, except upon the occurrence of certain changes in tax laws. On or after June 6, 2022, the Company may redeem for cash all or part of the Notes, at its option, if the last reported sale price of the Company’s common shares has been at least 130% of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period ending on and including trading day immediately preceding the date won which the Company provide notice of redemption. The redemption of Notes will be equal to 100% of the principal amount plus accrued and unpaid interest to, but excluding, the redemption date.
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Share capital |
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Share capital | 21. Share capital The Company is authorized to issue an unlimited number of common shares. As at May 31, 2019, the Company has issued 250,989,120 shares, of which 600,000 shares were held and subject to various escrow agreements.
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Warrants |
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Warrants | 22. Warrants The warrant details of the Company are as follows:
In March 2018, the Company completed the acquisition of Nuuvera (Note 11) in which it reserved 1,345,866 common shares for issuance to the holders of certain common share purchase warrants of Nuuvera (“Nuuvera Warrants”). There are 3,795,450 Nuuvera Warrants, exercisable for Nuuvera shares at an exercise price of $7.20 per share, the Nuuvera shares would convert to 0.3546 Aphria shares and $0.62 cash.
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Stock options |
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Stock options | 23. Stock options The Company adopted a stock option plan under which it is authorized to grant options to officers, directors, employees and consultants enabling them to acquire common shares of the Company. The maximum number of common shares reserved for issuance of stock options that can be granted under the plan is 10% of the issued and outstanding common shares of the Company. The options granted can be exercised for up to a maximum of 10 years and vest as determined by the Board of Directors. The exercise price of each option can not be less than the market price of the common shares on the date of grant. The Company recognized a share-based compensation expense of $24,078 during the year ended May 31, 2019 (2018 - $15,780). The total fair value of options granted during the year was $21,952 (2018 - $28,912).
In June 2018, the Company issued 250,000 stock options at an exercise price of $11.78 per share, exercisable for 3 years to officers of the Company. 83,331 vested immediately and the remainder vest over 2 years. As at May 31, 2019 133,335 of these options have been cancelled. In July 2018, the Company issued 820,000 stock options at an exercise price between $11.51 and $11.85 per share, exercisable for 5 years to employees of the Company. 50,000 vested immediately and the remainder vest over 3 years. As at May 31, 2019 50,000 of these options have been cancelled. In September 2018, the Company issued 250,000 stock options at an exercise price of $19.38, exercisable for 5 years to employees of the Company. Nil vested immediately and the remainder vest over 3 years. As at May 31, 2019 33,334 of these options have been cancelled. In October 2018, the Company issued 80,000 stock options at an exercise price of $19.70, exercisable for 5 years to employees of the Company. Nil vested immediately and the remainder vest over 3 years. In February 2019, the Company issued 1,525,000 stock options at an exercise price between $9.92 and $13.31, exercisable for 3 to 5 years to officers and employees of the Company. 1,100,000 vested immediately and the remainder vest over 3 years. As at May 31, 2019 30,000 of these options have been cancelled. In April 2019, the Company issued 80,000 stock options at an exercise price of $11.45, exercisable for 5 years to employees of the Company. Nil vested immediately and the remainder vest over 3 years. The outstanding option details of the Company are as follows:
The Company used the Black-Scholes option pricing model to determine the fair value of options granted using the following assumptions: risk-free rate of 2.00‑2.08% on the date of grant; expected life of 3 – 5 years; volatility of 70% based on comparable companies; forfeiture rate of 0%; dividend yield of nil; and, the exercise price of the respective option.
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Non-controlling interest |
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Non-controlling interest | 24. Non-controlling interest The following tables summarise the information relating to the Company’s subsidiaries, 1974568 Ontario Ltd. (“Aphria Diamond”), CannInvest Africa Ltd., Verve Dynamics Incorporated (Pty) Ltd. (“Verve Dynamics”), Nuuvera Malta Ltd., Marigold, and ColCanna S.A.S. before intercompany eliminations.
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General and administrative expenses |
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General and administrative expenses | 25. General and administrative expenses
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Share-based compensation |
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Share-based compensation | 26. Share-based compensation Share-based compensation is comprised of:
During the year, the Company issued 96,833 deferred share units to certain directors of the Company, under the terms of the Company’s Omnibus Long-Term Incentive Plan. In May 2018, directors and officers of the Company forfeited 312,000 deferred share units which were granted during the prior year. During the year, the Company issued 197,600 restricted share units to employees, officers and directors. As at May 31, 2019, the Company had 136,958 deferred share units and 197,600 restricted share units outstanding. As at May 31, 2019 114,550 restricted share units were vested.
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Non-operating income (loss) |
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Non-operating income (loss) | 27. Non-operating income (loss) Non-operating income (loss) is comprised of:
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Gain on long-term investments | 28. Gain on long-term investments Gain on long-term investments for the year ended May 31, 2019 is comprised of:
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Earnings (loss) per share |
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Earnings (loss) per share | 29. Earnings (loss) per share The calculation of earnings (loss) per share for the year ended May 31, 2019 was based on the net income (loss) attributable to common shareholders of $(16,499) (2018 – $29,448) and a weighted average number of common shares outstanding of 242,763,558 (2018 – 161,026,463) calculated as follows:
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Change in non-cash working capital |
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Change in non-cash working capital | 30. Change in non-cash working capital Change in non-cash working capital is comprised of:
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Financial risk management and financial instruments |
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Financial risk management and financial instruments | 31. Financial risk management and financial instruments Financial instruments The Company has classified its cash and cash equivalents, marketable securities, long-term investments, and convertible notes receivable as FVTPL, accounts receivable, prepaids and other current assets and promissory notes receivable as loans and receivables, and accounts payable and accrued liabilities, promissory notes payable, long-term debt and convertible debentures as FVTPL or amortized cost. The carrying values of accounts receivable, prepaids and other current assets, accounts payable and accrued liabilities, and promissory notes payable approximate their fair values due to their short periods to maturity. The Company’s long-term debt of $28,982 is subject to fixed interest rates. The Company’s long-term debt is valued based on discounting the future cash outflows associated with the long-term debt. The discount rate is based on the incremental premium above market rates for Government of Canada securities of similar duration. In each period thereafter, the incremental premium is held constant while the Government of Canada security is based on the then current market value to derive the discount rate. The fair value of the Company’s long-term debt in repayment as at May 31, 2019 was $28,377. Fair value hierarchy Financial instruments recorded at fair value are classified using a fair value hierarchy that reflects the significance of inputs used in making the measurements. Cash and cash equivalents are Level 1. The hierarchy is summarized as follows: Level 1 quoted prices (unadjusted) in active markets for identical assets and liabilities Level 2 inputs that are observable for the asset or liability, either directly (prices) or indirectly (derived from prices) from observable market data Level 3 inputs for assets and liabilities not based upon observable market data
The following table presents the changes in level 3 items for the years ended May 31, 2019 and May 31, 2018:
Financial risk management The Company has exposure to the following risks from its use of financial instruments: credit; liquidity; currency rate; and, interest rate price. (a) Credit risk The maximum credit exposure at May 31, 2019 is the carrying amount of cash and cash equivalents, marketable securities, accounts receivable, prepaids and other current assets and promissory notes receivable. The Company does not have significant credit risk with respect to customers. All cash and cash equivalents are placed with major financial institutions. Marketable securities are placed with major investment banks and are represented by investment grade corporate bonds. The Company mitigates its credit risk and volatility on its marketable securities through its investment policy, which permits investments in Federal or Provincial government securities, Provincial utilities or bank institutions and Investment grade corporate bonds.
(b) Liquidity risk As at May 31, 2019, the Company’s financial liabilities consist of accounts payable and accrued liabilities, which has contractual maturity dates within one year, promissory note payable, which has a contractual maturity within 15 months and long-term debt, and convertible debentures which has contractual maturities over the next five years. The Company manages its liquidity risk by reviewing its capital requirements on an ongoing basis. Based on the Company’s working capital position at May 31, 2019, management regards liquidity risk to be low. (c) Currency rate risk As at May 31, 2019, a portion of the Company’s financial assets and liabilities held in United States Dollars (“USD”) and Euros consist of cash and cash equivalents, marketable securities, convertible notes receivable, long-term investments and a promissory note payable. The Company’s objective in managing its foreign currency risk is to minimize its net exposure to foreign currency cash flows by transacting, to the greatest extent possible, with third parties in the functional currency. The Company is exposed to currency rate risk in other comprehensive income, relating to foreign subsidiaries which operate in a foreign currency. The Company does not currently use foreign exchange contracts to hedge its exposure of its foreign currency cash flows as management has determined that this risk is not significant at this point in time. The Company is exposed to unrealized foreign exchange risk through its cash and cash equivalents. As at May 31, 2019, the majority of the Company’s cash and cash equivalents was in United States dollars. A 1% change in the foreign exchange rate would result in an unrealized gain or loss of approximately $4,000. (d) Interest rate price risk The Company manages interest rate risk by restricting the type of investments and varying the terms of maturity and issuers of marketable securities. Varying the terms to maturity reduces the sensitivity of the portfolio to the impact of interest rate fluctuations. (e) Capital management The Company’s objectives when managing its capital are to safeguard its ability to continue as a going concern, to meet its capital expenditures for its continued operations, and to maintain a flexible capital structure which optimizes the cost of capital within a framework of acceptable risk. The Company manages its capital structure and adjusts it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust its capital structure, the Company may issue new shares, issue new debt, or acquire or dispose of assets. The Company is not subject to externally imposed capital requirements. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. There have been no changes to the Company’s capital management approach in the year. The Company considers its cash and cash equivalents and marketable securities as capital.
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Commitments and contingencies |
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Commitments and contingencies | 32. Commitments and contingencies The Company has a lease for rental office space from December 2018 to November 30, 2028. The Company has committed purchase orders outstanding at May 31, 2019 related to capital asset expansion of $49,364, all of which are expected to be paid within the next year. Minimum payments payable over the next five years are as follows:
From time to time, the Company and/or its subsidiaries may become defendants in legal actions arising out of the ordinary course and conduct of its business. As of May 31, 2019, the Company was served statements of claims in class action lawsuits against the Company and certain of its officers and former officers. These claims relate to alleged misconduct in connection with the Company’s acquisitions of LATAM Holdings Inc. (“LATAM”) and Nuuvera Inc., and the Company’s June 2018 securities offering. At the present time, the representative claimants have been identified and selected in both the U.S. and Canada. The U.S. claims include alleged violations of Section 10(b) of the Exchange Act, Rule 10b‑5 under the Exchange Act and Section 20(a) of the Exchange Act. The Canadian claims include alleged statutory and common law misrepresentation and oppression. The Company intends to vigorously defend itself in each of these actions. With respect to the cases commenced in the United States, the Company is self-insured for the costs associated with any award or damages arising from such actions and has entered into indemnity agreements with each of the directors and officers and, subject to certain exemptions, will cover any costs incurred by them in connection with any of the class action claims. With respect to the cases commenced in Canada, the Company’s insurance policies may not be sufficient to cover any judgments against the Company. As at May 31, 2019, the Company has not recorded any uninsured amount related to this contingency.
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Segment reporting |
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Segment reporting | 33. Segment reporting Information reported to the Chief Operating Decision Maker (“CODM”) for the purpose of resource allocation and assessment of segment performance focuses on the nature of the operations. The Company operates in three segments. 1) cannabis operations, which encompasses the production, distribution and sale of both medical and adult-use cannabis, 2) distribution operations, which encompasses the purchase and resale of products to customers. The distribution operations are carried out through the Company’s wholly owned subsidiaries ABP, FL Group and CC Pharma, and 3) businesses under development which encompasses operations in which the Company has not received final licensing or has not commenced commercial sales from operations. Factors considered in determining the operating segments include the Company’s business activities, the management structure directly accountable to the CODM, availability of discrete financial information and strategic priorities within the organizational structure. Segment information for the year ended May 31, 2019:
Included in the net loss from cannabis operations is the $58,039 of impairment (Note 11). Segment information for the year ended May 31, 2018:
Geographic information for the year ended May 31, 2019:
Geographic information for the year ended May 31, 2018:
Major customers are defined as customers that each individually account for greater than 10% of the Company’s annual revenues and greater than 10% of accounts receivable. For the year ended May 31, 2019, the Company had no one customer that accounted for greater than 10% of the Company’s revenue (2018 – nil). For the year ended May 31, 2019, the Company had no one customer that accounted for greater than 10% of the Company’s accounts receivable (2018 – nil).
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Subsequent events |
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Subsequent events | |
Subsequent events | 34. Subsequent events Subsequent to year-end the Company's subsidiary Marigold Projects Jamaica Limited received a retail Herb House licence from Jamaica's Cannabis Licensing Authority to open its first store at the Peter Tosh Square, Unit 51, Pulse Center, 38a Trafalgar Road, overlooking the Peter Tosh Museum in New Kingston, Jamaica.
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Significant accounting policies (Policies) |
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Significant accounting policies | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | a. Revenue Revenue is measured based on the consideration that the Company expects to be entitled to in exchange for transferring promised goods. Revenue from the sale of goods is recognized when control of the goods has transferred, which is determined by respective shipping terms and certain additional considerations. Invoices are generally issued at the time of delivery (which is when the Company has satisfied its performance obligation under the arrangement). The Company does not have performance obligations subsequent to delivery on the sale of goods to customers and revenues from sale of goods are recognized upon passing of control to the customer. Amounts disclosed as net revenue are net of sales tax, duty tax, allowances, discounts and rebates. |
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Cash and cash equivalents | c. Cash and cash equivalents Cash and cash equivalents are comprised of cash and highly liquid investments that are readily convertible into known amounts of cash and are subject to insignificant risk of changes in value. |
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Marketable securities | d. Marketable securities Marketable securities are comprised of liquid investments in federal, provincial and/or corporate bonds with maturities less than 3.5 years. Marketable securities are recognized initially at fair value and subsequently adjusted to fair value through profit or loss (“FVTPL”). |
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Inventory | e. Inventory Inventory is valued at the lower of cost and net realizable value. Cost is determined using the weighted average method. The capitalized cost of inventory includes the direct and indirect costs initially capitalized to biological assets before the transfer to inventory. The capitalized cost also includes subsequent costs such as materials, labour and amortization expense on equipment involved in packaging, labelling and inspection. The total cost of inventory also includes a fair value adjustment which represents the fair value of the biological asset at the time of harvest. All direct and indirect costs related to inventory are capitalized as they are incurred, and they are subsequently recorded within ‘production costs’ on the statements of income and comprehensive income at the time cannabis is sold, the realized fair value amounts included in inventory sold are recorded as a separate line on the statements of income and comprehensive income. |
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Biological assets | f. Biological assets The Company’s biological assets consist of cannabis plants which are not yet harvested. These biological assets are measured at fair value less costs to sell. The Company capitalizes all related direct costs of growing materials as well as other indirect costs of production such as utilities and supplies used in the growing process. Indirect labour for individuals involved in the growing and quality control process is also included, as well as amortization on production equipment and overhead costs to the extent it is associated with the growing space. All direct and indirect costs of biological assets are capitalized as they are incurred, and subsequently transferred to inventory at the point of harvest. Unrealized fair value gains on growth of biological assets are recorded in a separate line on the face of the statements of income and comprehensive income and subsequently transferred to inventory at the point of harvest. |
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Assets held for sale | g. Assets held for sale Assets and liabilities held for disposal are no longer amortized and are presented separately in the statement of financial position at the lower of their carrying amount and fair value less costs to sell. An asset is regarded as held for sale if its carrying amount will be recovered principally through a sale transaction, rather than through continuing use. For this to be the case, the asset must be available for immediate sale and its sale must be highly probable. |
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Capital assets | h. Capital assets Capital assets are stated at cost, net of accumulated amortization and accumulated impairment losses, if any. Amortization is calculated using the following terms and methods:
An item of equipment is derecognized upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying value of the asset) is included in the consolidated statements of income and comprehensive income in the year the asset is derecognized. The assets’ residual values and useful lives are reviewed at each financial year end and adjusted prospectively if appropriate. |
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Intangible assets | i. Intangible assets Intangible assets are stated at cost, net of accumulated amortization and accumulated impairment losses, if any. Amortization is calculated using the following terms and methods:
The estimated success of applications and useful life are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Following initial recognition, intangible assets with indefinite useful lives are carried at cost less any accumulated impairment losses. |
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Goodwill | j. Goodwill Goodwill represents the excess of the purchase price paid for the acquisition of subsidiaries over the fair value of the net tangible and intangible assets acquired. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. |
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Impairment of non-financial assets | k. Impairment of non-financial assets Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For the purpose of testing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating unit, or “CGU”). An impairment loss is recognized for the amount, if any, by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of the asset’s fair value less cost to sell and the value in use (being the present value of expected future cash flows of the asset or CGU). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the lesser of the revised estimate of recoverable amount and the carrying amount that would have been recorded had no impairment loss been previously recognized,with the exception of goodwill and indefinite lived intangible assets. |
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Income taxes | l. Income taxes Income tax expense consisting of current and deferred tax expense is recognized in the consolidated statements of income and comprehensive income. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with regards to previous years. Deferred tax assets and liabilities and the related deferred income tax expense or recovery are recognized for deferred tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted or substantively enacted tax rates expected to apply when the asset is realized or the liability settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that substantive enactment occurs. A deferred tax asset is recognized to the extent that it is probable that future taxable income will be available against which the asset can be utilized. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. |
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Earnings per share | m. Earnings per share Basic earnings per share is calculated using the weighted average number of common shares outstanding during the year. The dilutive effect on earnings per share is calculated presuming the exercise of outstanding options, warrants, convertible debentures and similar instruments. It assumes that the proceeds of such exercise would be used to repurchase common shares at the average market price during the year. However, the calculation of diluted loss per share excludes the effects of various conversions and exercise of options and warrants that would be anti-dilutive. |
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Share-based compensation | n. Share-based compensation The Company has an omnibus long-term incentive plan which includes issuances of stock options, restricted share units and deferred share units in place. The Company measures equity settled share-based payments based on their fair value at the grant date and recognizes compensation expense over the vesting period based on the Company’s estimate of equity instruments that will eventually vest. Fair value is measured using the Black-Scholes option pricing model. Expected forfeitures are estimated at the date of grant and subsequently adjusted if further information indicates actual forfeitures may vary from the original estimate. Any revisions are recognized in the consolidated statements of income and comprehensive income such that the cumulative expense reflects the revised estimate. |
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Research and development | o. Research and development Research costs are expensed as incurred. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development to use or sell the asset. Other development expenditures that do not meet the above criteria are recognized in the consolidated statements of income and comprehensive income as incurred. |
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Financial instruments | p. Financial instruments Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provision of the respective instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, other than financial assets and financial liabilities at FVTPL , are included in the initial carrying value of the related instrument and are amortized using the effective interest method. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss. Fair value estimates are made at the consolidated statement of financial position date based on relevant market information and information about the financial instrument. The Company has made the following classifications:
(i) FVTPL financial assets Financial assets are classified as FVTPL when the financial asset is held for trading or it is designated as FVTPL. Financial assets classified as FVTPL are stated at fair value with any resulting gain or loss recognized in the consolidated statements of income and comprehensive income. Transaction costs are expensed as incurred. (ii) Amortized cost financial assets Financial assets at amortized cost are non-derivative financial assets which are held within a business model whose objective is to hold assets to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A financial asset is initially measured at fair value, including transaction costs and subsequently at amortized cost. (iii) Impairment of financial assets Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting period. Financial assets are impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted. The carrying amount of all financial assets, excluding trade receivables, is directly reduced by the impairment loss. The carrying amount of trade receivables is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognized in the consolidated statements of income and comprehensive income. With the exception of FVOCI equity instruments, if, in a subsequent period, the amount of the impairment loss decreases and the decrease relates to an event occurring after the impairment was recognized; the previously recognized impairment loss is reversed through the consolidated statements of income and comprehensive income. (iv) Financial liabilities and other financial liabilities Financial liabilities are classified as either financial liabilities at FVTPL or at amortized cost. Financial liabilities at FVTPL are stated at fair value, with changes being recognized through the consolidated statements of income and comprehensive income. Other financial liabilities are initially measured at fair value, net of transaction costs, and are subsequently measured at amortized cost using the effective interest method, with interest expense recognized on an effective yield basis. (v) Embedded derivatives Embedded derivatives are separated from the host contract and accounted for separately if certain criteria are met. Derivatives are initially measured at fair value; any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes therein are recognised in profit or loss. (vi) Determination on fair value of long-term investments All long-term investments (other than Level 3 warrants) are initially recorded at the transaction price, being the fair value at the time of acquisition. Thereafter, at each reporting period, the fair value of an investment is adjusted using one or more of the valuation indicators described below. |
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Critical accounting estimates and judgments | q. Critical accounting estimates and judgments The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, and revenue and expenses. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the review affects both current and future periods. Long-term investments and convertible notes receivable The determination of fair value of the Company’s long-term investments and convertible notes receivable at other than initial cost is subject to certain limitations. Financial information for private companies in which the Company has investments may not be available and, even if available, that information may be limited and/or unreliable. Use of the valuation approach described below may involve uncertainties and determinations based on the Company’s judgment and any value estimated from these techniques may not be realized or realizable. Company-specific information is considered when determining whether the fair value of a long-term investment or convertible notes receivable should be adjusted upward or downward at the end of each reporting period. In addition to company-specific information, the Company will take into account trends in general market conditions and the share performance of comparable publicly-traded companies when valuing long-term investments and convertible notes receivable. The fair value of long-term investments and convertible notes receivable may be adjusted if:
Adjustment to the fair value of a long-term investment and convertible notes receivable will be based upon management’s judgment and any value estimated may not be realized or realizable. The resulting values for non-publicly traded investments may differ from values that would be realized if a ready market existed. Biological assets and inventory Management is required to make a number of estimates in calculating the fair value less costs to sell of biological assets and harvested cannabis inventory. These estimates include a number of assumptions such as estimating the stage of growth of the cannabis, harvesting costs, sales price, and expected yields. Estimated useful lives, impairment considerations and amortization of capital and intangible assets Amortization of capital and intangible assets is dependent upon estimates of useful lives based on management’s judgment. Goodwill and indefinite life intangible asset impairment testing requires management to make estimates in the impairment testing model. On an annual basis, the Company tests whether goodwill and indefinite life intangible assets are impaired. Impairment of definite long-lived assets is influenced by judgment in defining a CGU and determining the indicators of impairment, and estimates used to measure impairment losses The recoverable value of goodwill, indefinite and definite long-lived assets is determined using discounted future cash flow models, which incorporate assumptions regarding future events, specifically future cash flows, growth rates and discount rates. Share-based compensation The fair value of share-based compensation expenses are estimated using the Black-Scholes option pricing model and rely on a number of estimates, such as the expected life of the option, the volatility of the underlying share price, the risk free rate of return, and the estimated rate of forfeiture of options granted. Business combinations Judgement is used in determining whether an acquisition is a business combination or an asset acquisition. In determining the allocation of the purchase price in a business combination, including any acquisition-related contingent consideration, estimates including market based and appraisal values are used. The contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or liability is remeasured at subsequent reporting dates in accordance with IAS 39, or IAS 37, as appropriate, with the corresponding gain or loss being recognized in profit or loss. The Company measures all assets acquired and liabilities assumed at their acquisition-date fair values. Non-controlling interests in the acquiree are measured on the basis of the non-controlling interests’ proportionate share of this equity in the acquiree’s identifiable net assets. Acquisition-related costs are recognized as expenses in the periods in which the costs are incurred and the services are received (except for the costs to issue debt or equity securities which are recognized according to specific requirements). The excess of the aggregate of (a) the consideration transferred to obtain control, the amount of any non-controlling interest in the acquire over (b) the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed, is recognized as goodwill as of the acquisition date. Convertible debentures The fair value of the convertible debentures is determined using the quoted price in the over-the-counter broker market. As the convertible debentures are classified as FVTPL, the subsequent interest as well as change in the fair value will flow through the consolidated statements of comprehensive income. |
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New standards and interpretations issued but not yet adopted | r. New standards and interpretations applicable effective June 1, 2018 IFRS 9 - Financial Instruments; Classification and Measurement, effective for annual periods beginning on or after January 1, 2018, with early adoption permitted, introduces new requirements for the classification, measurement and derecognition of financial instruments and introduces a new impairment model for financial assets. Under IFRS 9, financial instruments are initially measured at fair value plus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs. Subsequently, all assets within scope of IFRS 9 are measured at:
The classification is based on whether the contractual cash flows give rise to payments on specified dates that are solely payments of principal and interest (the “SPPI test”), and the objective of the Company’s business model is to hold assets only to collect cash flows, or to collect cash flows and to sell (the “Business Model test”). Financial assets are required to be reclassified only when the business model under which they are managed has changed. All reclassifications are to be applied prospectively from the reclassification date. The impairment requirements under IFRS 9 are based on an expected credit loss (“ECL”) model, replacing the IAS 39 incurred loss model. The expected credit loss model applies to debt instruments recorded at amortized cost or at FVOCI, such as loans, debt, securities and trade receivables, lease receivables and most loan commitments and financial guarantee contracts. The following table summarizes the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of the Company’s financial assets and financial liabilities:
There were no other changes on adoption aside from the above classification changes. IFRS 15 - Revenue from Contracts with Customers; effective for annual periods beginning on or after January 1, 2018, specifies how and when to recognize revenue, based on five-step model, and enhances relevant disclosures to be applied to all contracts with customers. The Company has applied IFRS 15 retrospectively and determined that there is no change to the comparative periods or transitional adjustments required as a result of the adoption of this standard. The Company’s accounting policy for revenue recognition under IFRS 15 is as follows: To recognize revenue under IFRS 15, the Company applies the following five steps:
Revenue from the direct sale of goods to customers for a fixed price is recognized when the company transfers control of the good to the customer. s. New standards and interpretations issued but not yet adopted IFRS 16 – Leases; in January 2016, the IASB issued IFRS 16, which specifies how an IFRS reporter will recognise, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. Lessors continue to classify leases as operating or finance, with IFRS 16’s approach to lessor accounting substantially unchanged from its predecessor, IAS 17. IFRS 16 is effective for annual reporting periods beginning on or after January 1, 2019, and a lessee shall either apply IFRS 16 with full retrospective effect or alternatively not restate comparative information but recognise the cumulative effect of initially applying IFRS 16 as an adjustment to opening equity at the date of initial application. Based on its current assets, relationship with other entities interests and investments, no significant impact is anticipated from the new standard. There are no other standards that are not yet effective and that would be expected to have a material impact on the Company in the current or future reporting periods and on foreseeable future transactions. The Company has reclassified certain immaterial items on the comparative consolidated statements of financial position, consolidated statements of income and comprehensive income, and consolidated statements of cash flows to improve clarity.
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Basis of preparation (Tables) |
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Schedule of subsidiaries |
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Significant accounting policies (Tables) |
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Schedule of amortization of capital assets |
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Schedule of amortization of intangible assets |
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Schedule of financial instrument classification |
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Marketable securities (Tables) |
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Schedule of marketable securities |
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Prepaids and other current assets (Tables) |
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Schedule of prepaids and other current assets |
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Inventory (Tables) |
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Summary of inventories |
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Biological assets (Tables) |
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Summary of biological assets |
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Related party transactions (Tables) |
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Schedule of key management personnel compensation |
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Capital assets (Tables) |
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Capital assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of capital assets |
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Intangible assets (Tables) |
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Schedule of intangible assets |
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Business Acquisitions (Tables) |
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May 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of goodwill acquired |
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Broken Coast Cannabis Ltd. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of fair value of the assets acquired and the liabilities assumed at the acquisition date |
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Nuuvera Corp | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of fair value of the assets acquired and the liabilities assumed at the acquisition date | The table below summarizes the fair value of the assets acquired and the liabilities assumed at the effective acquisition date:
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LATAM Holdings Inc | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of fair value of the assets acquired and the liabilities assumed at the acquisition date |
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CC Pharma GmbH | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of fair value of the assets acquired and the liabilities assumed at the acquisition date |
|
Convertible notes receivable (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible notes receivable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of convertible notes receivable |
|
Interest in equity investees (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest in equity investees | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of investment in associated company |
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Summary of financial information of the Company's associate |
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Summary of reconciliation to carrying amount |
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Long-term investments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of long-term investments |
|
Promissory notes receivable (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Promissory notes receivable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Promissory notes receivable |
|
Income taxes and deferred income taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes and deferred income taxes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of income taxes at the statutory rate |
|
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Summary of components of deferred tax |
|
Promissory notes payable (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Promissory note payable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Promissory note payable |
|
Long-term debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of detailed information about borrowings |
|
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Schedule of long-term debt repayments |
|
Convertible debentures (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debentures | ||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of convertible debentures |
|
Share capital (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share capital | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of classes of share capital |
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Warrants (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of type of warrants |
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Schedule of outstanding warrants |
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Stock options (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of changes in stock options |
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Schedule of outstanding options |
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Non-controlling interest (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-controlling interest | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of subsidiaries | The following tables summarise the information relating to the Company’s subsidiaries, 1974568 Ontario Ltd. (“Aphria Diamond”), CannInvest Africa Ltd., Verve Dynamics Incorporated (Pty) Ltd. (“Verve Dynamics”), Nuuvera Malta Ltd., Marigold, and ColCanna S.A.S. before intercompany eliminations.
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General and administrative expenses (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of general and administrative expenses |
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Share-based compensation (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of share based compensation |
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Non-operating income (loss) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-operating income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Non-operating income (loss) |
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Gain on long-term investments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on long-term investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on long-term investments |
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Earnings (loss) per share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (loss) per share | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share [text block] |
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Change in non-cash working capital (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in non-cash working capital | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of change in non-cash working capital |
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Financial risk management and financial instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial risk management and financial instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of financial instruments recorded at fair value classified using a fair value hierarchy that reflects the significance of inputs used in making the measurements |
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Summary of changes in level 3 items |
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Summary of credit risk and volatility on its marketable securities |
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Commitments and contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||
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May 31, 2019 | |||||||||||||||||||||||||||||||||||||
Commitments and contingencies | |||||||||||||||||||||||||||||||||||||
Schedule of minimum payments payable over the next five years |
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Segment reporting (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment reporting | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment information | Segment information for the year ended May 31, 2019:
Included in the net loss from cannabis operations is the $58,039 of impairment (Note 11). Segment information for the year ended May 31, 2018:
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Schedule of geographic information | Geographic information for the year ended May 31, 2019:
Geographic information for the year ended May 31, 2018:
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Nature of operations (Details) |
1 Months Ended |
---|---|
Nov. 30, 2017 | |
Aphria Diamond | |
Proportion of interest in subsidiary (in percent) | 51.00% |
Significant accounting policies - Marketable securities (Details) |
12 Months Ended |
---|---|
May 31, 2019 | |
Significant accounting policies | |
Marketable securities, maturity term | 3 years 6 months |
Significant accounting policies - Capital assets (Details) |
12 Months Ended |
---|---|
May 31, 2019 | |
Production facility | Minimum | |
Significant accounting policies | |
Amortization term | 15 years |
Production facility | Maximum | |
Significant accounting policies | |
Amortization term | 20 years |
Equipment | Minimum | |
Significant accounting policies | |
Amortization term | 3 years |
Equipment | Maximum | |
Significant accounting policies | |
Amortization term | 10 years |
Significant accounting policies - Intangible assets (Details) |
12 Months Ended |
---|---|
May 31, 2019 | |
Customer relationships | Minimum | |
Significant accounting policies | |
Amortization term | 3 years |
Customer relationships | Maximum | |
Significant accounting policies | |
Amortization term | 10 years |
Corporate website | |
Significant accounting policies | |
Amortization term | 2 years |
Licenses, permits and applications | Minimum | |
Significant accounting policies | |
Amortization term | 90 months |
Intellectual property, trademarks & brands | Minimum | |
Significant accounting policies | |
Amortization term | 15 months |
Intellectual property, trademarks & brands | Maximum | |
Significant accounting policies | |
Amortization term | 20 years |
Prepaids and other current assets (Details) - CAD ($) $ in Thousands |
May 31, 2019 |
May 31, 2018 |
---|---|---|
Prepaids and other current assets | ||
Sales tax receivable | $ 7,583 | $ 10,840 |
Accrued interest | 2,779 | 831 |
Prepaid assets | 10,696 | 1,720 |
Other | 2,333 | 993 |
Total | $ 23,391 | $ 14,384 |
Biological assets - Rollforward (Details) - CAD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 31, 2019 |
May 31, 2018 |
|
Reconciliation of changes in biological assets | ||
Biological assets at beginning of period | $ 7,331 | $ 1,408 |
Changes in fair value less costs to sell due to biological transformation | 40,607 | 23,302 |
Purchased as part of business acquisition | 826 | |
Production costs capitalized | 47,747 | 12,143 |
Transferred to inventory upon harvest | (76,960) | (30,348) |
Balance at the end | $ 18,725 | $ 7,331 |
Biological assets - Sensitivity of the inputs (Details) - CAD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 31, 2019 |
May 31, 2018 |
|
Biological assets | ||
Percentage of possible decrease in average selling price per gram | 5.00% | |
Decrease in biological asset value due to decrease in average selling price per gram | $ 516 | $ 267 |
Decrease in inventory due to decrease in average selling price per gram | $ 2,470 | 1,040 |
Percentage of possible decrease in harvest yield per plant | 5.00% | |
Decrease in biological asset value due to decrease in the harvest yield per plant | $ 266 | $ 179 |
Related party transactions (Details) - CAD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 31, 2019 |
May 31, 2018 |
|
Related parties | ||
Related party transactions | ||
Salaries | $ 5,024 | $ 1,699 |
Short-term employment benefits(included in office and general) | 116 | 70 |
Share-based compensation | 11,854 | 3,235 |
Total Key management personnel compensation | $ 16,994 | $ 5,004 |
Directors and Officers | ||
Related party transactions | ||
Percentage of voting rights controlled by related parties | 0.10% | |
Number of voting shares controlled by related parties | 135,942 | |
Mr.Irwin Simon | ||
Related party transactions | ||
Base compensation | $ 1,100 | |
Stock options declared | 1,000,000 | |
Restricted stock units declared | 25,000 | |
Board of Directors | ||
Related party transactions | ||
Base compensation | $ 300 | |
Compensation paid in cash | 150 | |
Deferred share units, value | $ 150 | |
One time award | 7,500 |
Business Acquisitions - Acquisition of Nuuvera Corp. (Details) - Nuuvera Corp |
Mar. 23, 2018
CAD ($)
USD ($)
$ / shares
shares
|
|||||
---|---|---|---|---|---|---|
Business Acquisitions | ||||||
Percentage of voting interest acquired | 100.00% | |||||
Total consideration in cash | $ / shares | $ 0.62 | |||||
Shares issued per share | $ / shares | $ 0.3546 | |||||
Consideration paid | ||||||
Cash | $ 54,604,000 | |||||
Shares issued | ||||||
Number of shares | 31,226,910 | [1] | ||||
Share price | $ / shares | $ 13.17 | [1] | ||||
Amount | $ 411,258,000 | [1] | ||||
Warrants outstanding | ||||||
Number of warrants | shares | 1,345,866 | [2] | ||||
Warrants amount | $ 1,015,000 | [2] | ||||
Replacement options issued | ||||||
Number of options | shares | 1,280,330 | [1] | ||||
Option amount | $ 12,133,000 | [1] | ||||
Fair value of previously held investment | $ 479,010,000 | |||||
Shares held by Aphria | ||||||
Number of shares | shares | 1,878,738 | [1] | ||||
Share Price | $ / shares | $ 14.92 | [1] | ||||
Amount | $ 28,028,000 | [1] | ||||
Consideration paid other than previously held investment | $ 28,271,000 | |||||
Warrants held by Aphria | ||||||
Number of shares | shares | 322,365 | [2] | ||||
Amount | $ 243,000 | [2] | ||||
Total consideration paid | 507,281,000 | |||||
Current assets | ||||||
Cash and cash equivalents | 35,033,000 | |||||
Accounts receivable | 464,000 | |||||
Prepaids and other current assets | 1,142,000 | |||||
Inventory | 401,000 | |||||
Long-term assets | ||||||
Capital assets | 4,743,000 | |||||
Intellectual property, trademarks & brands | 3,700,000 | |||||
Licences, permits & applications | 131,600,000 | |||||
Goodwill | 377,221,000 | |||||
Total assets | 554,304,000 | |||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 11,000,000 | |||||
Long-term liabilities | ||||||
Deferred tax liability | 36,023,000 | |||||
Total liabilities | 47,023,000 | |||||
Total net assets acquired | $ 507,281,000 | |||||
Risk-free rate (as a percent) | 2.19% | |||||
Volatility (as a percent) | 30.00% | |||||
Forfeiture rate (as a percent) | 0.00% | |||||
Dividend yield (as a percent) | 0.00% | |||||
Net income and comprehensive net income within the prior year for the Company would have been higher, if the acquisition had taken place | $ 19,611,000 | |||||
Transaction costs | $ 3,439,000 | |||||
Minimum | ||||||
Long-term liabilities | ||||||
Expected life | 1 year | |||||
Exercise price (in Canadian dollars per share) | $ 2.52 | |||||
Maximum | ||||||
Long-term liabilities | ||||||
Expected life | 10 years | |||||
Exercise price (in Canadian dollars per share) | $ 20.30 | |||||
|
Business Acquisitions - Acquisition of LATAM Holdings Inc. (Details) - LATAM Holdings Inc $ / shares in Units, $ in Thousands |
Sep. 27, 2018
USD ($)
|
Sep. 27, 2018
CAD ($)
USD ($)
$ / shares
|
Jul. 17, 2018
USD ($)
|
Jul. 17, 2018
CAD ($)
|
|||
---|---|---|---|---|---|---|---|
Business Acquisitions | |||||||
Percentage of voting interest acquired | 100.00% | 100.00% | |||||
Number of shares issued | [1] | 15,678,310 | |||||
Purchase price | $ 273,900 | $ 193,000 | |||||
Short-term liabilities assumed | $ 1,000,000 | 1,310 | |||||
Consideration paid | |||||||
Number of shares | [1] | 15,678,310 | |||||
Share price | $ / shares | [1] | $ 17.47 | |||||
Amount | [1] | $ 273,900 | |||||
Total consideration paid | 273,900 | $ 193,000 | |||||
Current assets | |||||||
Cash and cash equivalents | 2,704 | ||||||
Accounts receivable | 571 | ||||||
Prepaids and other current assets | 106 | ||||||
Inventory | 65 | ||||||
Long-term assets | |||||||
Capital assets | 494 | ||||||
Licences, permits & applications | 123,956 | ||||||
Goodwill | 189,188 | ||||||
Total assets | 317,084 | ||||||
Current liabilities | |||||||
Accounts payable and accrued liabilities | 1,986 | ||||||
Income taxes payable | 20 | ||||||
Long-term liabilities | |||||||
Deferred tax liability | 29,837 | ||||||
Total liabilities | 31,843 | ||||||
Non-controlling interest | 11,341 | ||||||
Total net assets acquired | $ 273,900 | ||||||
Net income and comprehensive net income within the prior year for the Company would have been higher, if the acquisition had taken place | $ 4,556,000 | ||||||
Transaction costs | $ 1,133,000 | ||||||
|
Business Acquisitions - Acquisition of CC Pharma GmbH (Details) - CC Pharma GmbH € in Thousands, $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
May 31, 2019
CAD ($)
|
Nov. 07, 2018 |
Nov. 07, 2017
EUR (€)
|
Nov. 07, 2017
CAD ($)
|
|
Business Acquisitions | ||||
Percentage of voting interest acquired | 100.00% | |||
Consideration | ||||
Cash | € 18,920 | $ 28,775 | ||
Contingent consideration | € 23,500 | 35,741 | ||
Total consideration paid | 64,516 | |||
Current assets | ||||
Cash and cash equivalents | 7,237 | |||
Accounts receivable | 33,989 | |||
Prepaids and other current assets | 14,616 | |||
Inventory | 28,352 | |||
Long-term assets | ||||
Capital assets | 6,373 | |||
Customer relationships | 21,300 | |||
Non-compete agreements | 1,400 | |||
Intellectual property, trademarks & brands | 16,200 | |||
Goodwill | 6,146 | |||
Total assets | 135,613 | |||
Current liabilities | ||||
Bank loans and overdrafts | 20,255 | |||
Accounts payable and accrued liabilities | 44,111 | |||
Income taxes payable | 672 | |||
Long-term liabilities | ||||
Deferred tax liability | 6,059 | |||
Total liabilities | 71,097 | |||
Total net assets acquired | $ 64,516 | |||
Revenue within the prior year for the Company would have been higher, if the acquisition had taken place | $ 367,200 | |||
Net income and comprehensive net income within the prior year for the Company would have been higher, if the acquisition had taken place | 9,955 | |||
Transaction costs | $ 595 |
Business Acquisitions - Goodwill (Details) £ in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
May 31, 2019
GBP (£)
entity
|
May 31, 2019
CAD ($)
entity
|
May 31, 2018
CAD ($)
|
|
Business Acquisitions | |||
Goodwill | $ 669,846 | $ 522,762 | |
Number of reporting units | entity | 3 | 3 | |
Impairment of goodwill | $ 50,000 | ||
Impairment related to uncollectible promissory notes receivable | £ 4,600 | 8,039 | |
Total impairment | 58,039 | ||
CannWay | |||
Business Acquisitions | |||
Goodwill | 1,200 | 1,200 | |
Broken Coast Cannabis Ltd. | |||
Business Acquisitions | |||
Goodwill | 146,091 | 145,794 | |
Nuuvera Corp | |||
Business Acquisitions | |||
Goodwill | 377,221 | $ 375,768 | |
LATAM Holdings Inc | |||
Business Acquisitions | |||
Goodwill | 139,188 | ||
CC Pharma GmbH | |||
Business Acquisitions | |||
Goodwill | $ 6,146 | ||
Colcanna | |||
Business Acquisitions | |||
Discount rates used previously | 31.00% | ||
Discount rates used current | 21.30% | ||
ABP | |||
Business Acquisitions | |||
Discount rates used previously | 36.50% | ||
Discount rates used current | 33.00% | ||
Marigold | |||
Business Acquisitions | |||
Discount rates used previously | 23.30% | ||
Discount rates used current | 38.50% |
Convertible notes receivable (Details) - CAD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Apr. 10, 2019 |
Dec. 28, 2018 |
Jul. 26, 2018 |
Aug. 14, 2017 |
May 31, 2019 |
May 31, 2018 |
Apr. 10, 2021 |
|
Convertible notes receivable | |||||||
Convertible notes receivable | $ 32,230 | $ 18,071 | |||||
Deduct - current portion | (11,500) | (1,942) | |||||
Convertible notes receivable, noncurrent | 20,730 | 16,129 | |||||
Unrealized (loss) gain on recognition of convertible notes | (3,399) | 4,135 | |||||
Convertible notes receivable | |||||||
Convertible notes receivable | |||||||
Purchase of Convertible notes | 19,500 | 14,001 | |||||
Unrealized (loss) gain on recognition of convertible notes | $ (3,399) | 5,943 | |||||
Volatility | 70.00% | ||||||
Forfeiture rate | 0.00% | ||||||
Dividend yield | 0.00% | ||||||
Convertible notes receivable | Minimum | |||||||
Convertible notes receivable | |||||||
Risk-free rate | 0.85% | ||||||
Convertible notes receivable | Maximum | |||||||
Convertible notes receivable | |||||||
Risk-free rate | 1.51% | ||||||
Copperstate Farms Investors, LLC | |||||||
Convertible notes receivable | |||||||
Convertible notes receivable | 1,942 | ||||||
HydRx Farms Ltd.(d/b/a Scientus Pharma) | |||||||
Convertible notes receivable | |||||||
Convertible notes receivable | $ 11,500 | $ 16,129 | |||||
HydRx Farms Ltd.(d/b/a Scientus Pharma) | Secured | |||||||
Convertible notes receivable | |||||||
Convertible notes receivable | 11,500 | ||||||
Purchase of Convertible notes | $ 11,500 | ||||||
Interest rate (as a percent) | 8.00% | ||||||
Convertible notes receivable, term | 2 years | ||||||
Conversion price (in Canadian dollars per share) | $ 2.75 | ||||||
Price per share (in Canadian dollars per share) | $ 3.02 | ||||||
Number of days traded | 30 days | ||||||
Loss from change in fair value | 4,629 | ||||||
Fire & Flower Inc. | |||||||
Convertible notes receivable | |||||||
Convertible notes receivable | 11,166 | ||||||
Fire & Flower Inc. | Unsecured | |||||||
Convertible notes receivable | |||||||
Convertible notes receivable | 11,166 | ||||||
Purchase of Convertible notes | $ 10,000 | ||||||
Interest rate (as a percent) | 8.00% | ||||||
Loss from change in fair value | 1,166 | ||||||
Interest rate on loans (as a percent) | 12.00% | ||||||
Fire & Flower Inc. | Unsecured | Minimum | |||||||
Convertible notes receivable | |||||||
Conversion price (in Canadian dollars per share) | $ 1.15 | ||||||
10330698 Canada Ltd. (d/b/a Starbuds) | |||||||
Convertible notes receivable | |||||||
Convertible notes receivable | 5,204 | ||||||
10330698 Canada Ltd. (d/b/a Starbuds) | Secured | |||||||
Convertible notes receivable | |||||||
Convertible notes receivable | 5,204 | ||||||
Purchase of Convertible notes | $ 5,000 | ||||||
Interest rate (as a percent) | 8.50% | ||||||
Conversion price (in Canadian dollars per share) | $ 0.50 | ||||||
Loss from change in fair value | 204 | ||||||
High Tide Inc | |||||||
Convertible notes receivable | |||||||
Convertible notes receivable | 4,360 | ||||||
High Tide Inc | Unsecured | |||||||
Convertible notes receivable | |||||||
Convertible notes receivable | 4,360 | ||||||
Purchase of Convertible notes | $ 4,500 | ||||||
Interest rate (as a percent) | 10.00% | ||||||
Conversion price (in Canadian dollars per share) | $ 0.75 | ||||||
Loss from change in fair value | $ 140 | ||||||
Number of shares held by the entity | 6,000,000 |
Interest in equity investees (Details) - CAD ($) $ in Thousands |
May 31, 2019 |
May 31, 2018 |
---|---|---|
Interest in equity investees | ||
Interest in equity investees | $ 9,311 | $ 4,966 |
Althea | ||
Interest in equity investees | ||
Interest in equity investees | $ 9,311 | $ 4,966 |
Interest in equity investees - Liberty Health Sciences (Details) $ / shares in Units, $ in Thousands |
1 Months Ended | 12 Months Ended | |
---|---|---|---|
Jul. 31, 2018
CAD ($)
$ / shares
shares
|
Feb. 28, 2018
USD ($)
|
May 31, 2019
CAD ($)
|
|
Interest in equity investees | |||
Termination fee | $ 1,000 | ||
Liberty Health Sciences Inc. | |||
Interest in equity investees | |||
Discount rate on market price of newly freely trading shares | 18.00% | ||
Number of days | 10 | ||
Termination fee | $ 2,500 | ||
Shares released from escrow | shares | 16,029,615 | ||
Gross proceeds | $ 11,514 | ||
Recognized gain on sale of equity investee | 9,880 | ||
Cash paid in exchange for option to buy back shares | $ 480 | ||
Share Price | $ / shares | $ 1.00 | ||
Buyback price per share | $ / shares | $ 1.25 |
Interest in equity investees - Obligation Agreement (Details) - CAD ($) $ in Thousands |
1 Months Ended | 12 Months Ended | |
---|---|---|---|
Feb. 19, 2020 |
May 31, 2019 |
May 31, 2018 |
|
Interest in equity investees | |||
Termination fee | $ 1,000 | ||
Net loss | (16,499) | $ 29,448 | |
Net comprehensive loss | (119) | (801) | |
Loss from equity investment | 1,123 | 9,281 | |
Liberty Health Sciences Inc. | |||
Interest in equity investees | |||
Termination fee | $ 2,500 | ||
Shares divested in exchange for consideration in the form of promissory note | 64,118,462 | ||
Value of shares divested in exchange for consideration in the form of promissory note | $ 59,098 | ||
Bearing interest rate | 12.00% | ||
Term (in years) | 5 years | ||
Percent of annual fee | 12.975% | ||
Recognized gain on sale of equity investee | $ 57,351 | ||
Cash payment | $ 47,448 | ||
Contingent payment | $ 10,000 | ||
Maximum period of monetizing the assets held under the option | 6 months | ||
Total gain on dilution of ownership in equity investee | 7,535 | ||
Net loss | 24,671 | ||
Net comprehensive loss | $ 26,798 |
Interest in equity investees - Althea (Details) $ in Thousands, $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
May 31, 2019
AUD ($)
shares
|
May 31, 2019
CAD ($)
shares
|
May 31, 2018
CAD ($)
shares
|
May 31, 2019
CAD ($)
shares
|
|
Interest in equity investees | ||||
Net loss | $ (16,499) | $ 29,448 | ||
Net loss | 1,123 | 9,281 | ||
Total proceeds from shares issued | $ 245,925 | $ 195,661 | ||
Althea | ||||
Interest in equity investees | ||||
Common shares held | shares | 50,750,000 | 4,500 | 50,750,000 | |
Ownership percent held | 25.00% | 25.00% | 37.50% | |
Net loss | $ 4,368 | |||
Share split ratio | 7,500 | 7,500 | ||
Common shares issued | shares | 101,310,000 | 101,310,000 | ||
Total proceeds from shares issued | $ 19,650 | |||
Contributions made by Company | 3,400 | $ 3,258 | ||
Total gain on dilution of ownership in equity investee | $ 2,210 | |||
Fair value of shares based on the closing share price | $ 36,032 | $ 33,776 |
Interest in equity investees - Financial information (Details) - CAD ($) $ in Thousands |
May 31, 2019 |
Mar. 31, 2019 |
May 31, 2018 |
Mar. 31, 2018 |
---|---|---|---|---|
Interest in equity investees | ||||
Current assets | $ 780,829 | $ 194,612 | ||
Current liabilities | $ (138,545) | $ (43,854) | ||
Althea | ||||
Interest in equity investees | ||||
Current assets | $ 18,210 | $ 3,857 | ||
Non-current assets | 1,125 | 3 | ||
Current liabilities | (655) | (14) | ||
Net assets | $ 18,680 | $ 3,846 |
Interest in equity investees - Reconciliation to Carrying Amount (Details) - CAD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 31, 2019 |
May 31, 2018 |
|
Interest in equity investees | ||
Opening balance | $ 4,966 | |
Closing balance | 9,311 | $ 4,966 |
Althea | ||
Interest in equity investees | ||
Opening balance | 4,966 | |
Transfer from long-term investments | 2,483 | |
Cash contributions, net of share issuance costs | 3,258 | 2,497 |
Total gain on dilution of ownership in equity investee | 2,210 | |
Share of reported net loss | (1,123) | (14) |
Closing balance | $ 9,311 | $ 4,966 |
Long-term investments - Rollforward (Details) $ in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
May 31, 2019
USD ($)
Y
|
May 31, 2019
CAD ($)
Y
|
May 31, 2018
CAD ($)
|
|
Long-term investments | |||
Cost | $ 35,016 | ||
Fair value, balance at the beginning | $ 46,028 | ||
Investment | 133,138 | ||
Divesture/ Transfer | (103,504) | ||
Total changes | 75,662 | ||
Change in fair value | (10,740) | ||
Fair value, balance at the end | $ 64,922 | ||
Warrants | |||
Long-term investments | |||
Volatility (as a percent) | 70.00% | 70.00% | |
Forfeiture rate (as a percent) | 0.00% | 0.00% | |
Dividend yield (as a percent) | 0.00% | 0.00% | |
Warrants | Minimum | |||
Long-term investments | |||
Risk-free rate (as a percent) | 0.75% | 0.75% | |
Expected life | Y | 1 | 1 | |
Warrants | Maximum | |||
Long-term investments | |||
Risk-free rate (as a percent) | 1.70% | 1.70% | |
Expected life | Y | 2 | 2 | |
Assets held for sale | |||
Long-term investments | |||
Cost | (11,162) | ||
Fair value, balance at the beginning | $ 20,000 | ||
Divesture/ Transfer | 20,000 | ||
Level 1 | |||
Long-term investments | |||
Cost | 24,321 | ||
Fair value, balance at the beginning | 33,600 | ||
Investment | 46,802 | ||
Divesture/ Transfer | (26,388) | ||
Total changes | 54,014 | ||
Change in fair value | (12,211) | ||
Fair value, balance at the end | 41,803 | ||
Level 2 | |||
Long-term investments | |||
Cost | 5,489 | ||
Fair value, balance at the beginning | 2,567 | ||
Investment | 16,787 | ||
Divesture/ Transfer | (19,354) | ||
Level 3 | |||
Long-term investments | |||
Cost | 16,368 | ||
Fair value, balance at the beginning | 29,861 | ||
Investment | 69,549 | ||
Divesture/ Transfer | (77,762) | ||
Total changes | 21,648 | ||
Change in fair value | 1,471 | ||
Fair value, balance at the end | 23,119 | ||
Green Acre Capital Fund I | |||
Long-term investments | |||
Fair value, balance at the end | 4,290 | ||
Green Acre Capital Fund I | Level 3 | |||
Long-term investments | |||
Cost | 1,600 | ||
Fair value, balance at the beginning | 2,042 | ||
Investment | 400 | ||
Total changes | 2,442 | ||
Change in fair value | 1,848 | ||
Fair value, balance at the end | 4,290 | ||
Green Acre Capital Fund II | Level 3 | |||
Long-term investments | |||
Investment | 3,000 | ||
Divesture/ Transfer | (3,000) | ||
US legalization options | Level 3 | |||
Long-term investments | |||
Investment | 54,762 | ||
Divesture/ Transfer | (54,762) | ||
CannaRoyalty Corp. | Level 1 | |||
Long-term investments | |||
Cost | 1,500 | ||
Fair value, balance at the beginning | 3,765 | ||
Divesture/ Transfer | (3,765) | ||
MassRoots, Inc. | Level 1 | |||
Long-term investments | |||
Cost | 304 | ||
Fair value, balance at the beginning | 164 | ||
Divesture/ Transfer | (164) | ||
Tetra Bio-Pharma Inc. | |||
Long-term investments | |||
Fair value, balance at the end | 17,216 | ||
Tetra Bio-Pharma Inc. | Level 1 | |||
Long-term investments | |||
Cost | 2,300 | ||
Fair value, balance at the beginning | 6,800 | ||
Investment | 16,757 | ||
Total changes | 23,557 | ||
Change in fair value | (6,341) | ||
Fair value, balance at the end | 17,216 | ||
Hiku Brands Company Ltd. | Level 1 | |||
Long-term investments | |||
Cost | 9,775 | ||
Fair value, balance at the beginning | 13,558 | ||
Divesture/ Transfer | (13,558) | ||
Hiku Brands Company Ltd. | Level 2 | |||
Long-term investments | |||
Cost | 2,336 | ||
Fair value, balance at the beginning | 1,906 | ||
Investment | 16,787 | ||
Divesture/ Transfer | (18,693) | ||
Scythian Biosciences Corp. | Level 1 | |||
Long-term investments | |||
Cost | 9,349 | ||
Fair value, balance at the beginning | 8,603 | ||
Investment | 298 | ||
Divesture/ Transfer | (8,901) | ||
Scythian Biosciences Corp. | Level 2 | |||
Long-term investments | |||
Cost | 3,153 | ||
Fair value, balance at the beginning | 661 | ||
Divesture/ Transfer | (661) | ||
National Access Cannabis Corp. | |||
Long-term investments | |||
Fair value, balance at the end | 7,941 | ||
National Access Cannabis Corp. | Level 1 | |||
Long-term investments | |||
Cost | 1,093 | ||
Fair value, balance at the beginning | 710 | ||
Investment | 10,481 | ||
Total changes | 11,191 | ||
Change in fair value | (4,044) | ||
Fair value, balance at the end | 7,147 | ||
Aleafia Health Inc | |||
Long-term investments | |||
Fair value, balance at the end | 8,445 | ||
Aleafia Health Inc | Level 1 | |||
Long-term investments | |||
Investment | 10,000 | ||
Total changes | 10,000 | ||
Change in fair value | (1,555) | ||
Fair value, balance at the end | 8,445 | ||
Rapid Dose Therapeutics Inc | |||
Long-term investments | |||
Fair value, balance at the end | 5,832 | ||
Rapid Dose Therapeutics Inc | Level 1 | |||
Long-term investments | |||
Investment | 5,400 | ||
Total changes | 5,400 | ||
Change in fair value | 432 | ||
Fair value, balance at the end | 5,832 | ||
Fire & Flower Inc. | Level 1 | |||
Long-term investments | |||
Investment | 3,416 | ||
Total changes | 3,416 | ||
Change in fair value | (593) | ||
Fair value, balance at the end | 2,823 | ||
High Tide Inc | |||
Long-term investments | |||
Fair value, balance at the end | 340 | ||
High Tide Inc | Level 1 | |||
Long-term investments | |||
Investment | 450 | ||
Total changes | 450 | ||
Change in fair value | (110) | ||
Fair value, balance at the end | 340 | ||
Copperstate Farms, LLC | Level 3 | |||
Long-term investments | |||
Cost | 1,755 | ||
Fair value, balance at the beginning | 5,300 | ||
Divesture/ Transfer | (5,300) | ||
Copperstate Farms Investors, LLC | Level 3 | |||
Long-term investments | |||
Cost | 9,407 | ||
Fair value, balance at the beginning | 14,700 | ||
Divesture/ Transfer | (14,700) | ||
Resolve Digital Health Inc. One | Level 3 | |||
Long-term investments | |||
Cost | 718 | ||
Fair value, balance at the beginning | 3,300 | ||
Total changes | 3,300 | ||
Change in fair value | (2,200) | ||
Fair value, balance at the end | 1,100 | ||
Resolve Digital Health Inc. Two | Level 3 | |||
Long-term investments | |||
Cost | 282 | ||
Fair value, balance at the beginning | 1,916 | ||
Total changes | 1,916 | ||
Change in fair value | (1,634) | ||
Fair value, balance at the end | 282 | ||
Green Tank Holdings Corp. | |||
Long-term investments | |||
Fair value, balance at the end | $ 3,943 | 5,334 | |
Green Tank Holdings Corp. | Level 3 | |||
Long-term investments | |||
Cost | 650 | ||
Fair value, balance at the beginning | 647 | ||
Investment | 1,240 | ||
Total changes | 1,887 | ||
Change in fair value | 3,447 | ||
Fair value, balance at the end | 5,334 | ||
IBBZ Krankenhaus GmbH | Level 3 | |||
Long-term investments | |||
Cost | $ 1,956 | ||
Fair value, balance at the beginning | 1,956 | ||
Total changes | 1,956 | ||
Change in fair value | 9 | ||
Fair value, balance at the end | 1,965 | ||
Greenwell Brands GmbH | Level 3 | |||
Long-term investments | |||
Investment | 152 | ||
Total changes | 152 | ||
Change in fair value | 1 | ||
Fair value, balance at the end | 153 | ||
HighArchy Ventures Ltd. | Level 3 | |||
Long-term investments | |||
Investment | 9,995 | ||
Total changes | 9,995 | ||
Fair value, balance at the end | $ 9,995 |
Long-term investments - Additional Information (Details) $ / shares in Units, € in Thousands, $ in Thousands, $ in Thousands |
1 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Oct. 31, 2018
CAD ($)
shares
|
Sep. 30, 2018
EUR (€)
shares
|
Sep. 30, 2018
CAD ($)
shares
|
May 31, 2019
USD ($)
item
shares
|
May 31, 2019
CAD ($)
item
shares
|
May 31, 2019
EUR (€)
shares
|
May 31, 2019
CAD ($)
$ / shares
shares
|
May 31, 2018
CAD ($)
|
|
Long-term investments | ||||||||
Gain (loss) from sale of investment | $ 30,391 | |||||||
Fair value of investment | $ 64,922 | $ 46,028 | ||||||
CannaRoyalty Corp. | ||||||||
Long-term investments | ||||||||
Number of investment shares sold | shares | 750,000 | 750,000 | ||||||
Proceeds from sale of investment | $ 4,111 | |||||||
Gain (loss) from sale of investment | $ 346 | |||||||
MassRoots, Inc. | ||||||||
Long-term investments | ||||||||
Number of investment shares sold | shares | 500,000 | 500,000 | ||||||
Proceeds from sale of investment | $ 1 | |||||||
Gain (loss) from sale of investment | $ 163 | |||||||
Tetra Bio-Pharma Inc. | ||||||||
Long-term investments | ||||||||
Number of investment units purchased | shares | 6,900,000 | 6,900,000 | ||||||
Cost of investment unit | $ 7,107 | |||||||
Number of shares per unit | item | 1 | 1 | ||||||
Number of warrants per unit | item | 1 | 1 | ||||||
Warrants exercise price | $ / shares | $ 1.29 | |||||||
Number of investment shares purchased | shares | 10,000,000 | 10,000,000 | ||||||
Cost of investment shares | $ 9,650 | |||||||
Number of shares held by the entity | shares | 26,900,000 | 26,900,000 | 26,900,000 | |||||
Number of warrants held by the entity | shares | 6,900,000 | 6,900,000 | 6,900,000 | |||||
Total cost of investment | $ 19,057 | |||||||
Fair value of investment | $ 17,216 | |||||||
Hiku Brands Company Ltd. | ||||||||
Long-term investments | ||||||||
Proceeds from sale of investment | 48,153 | |||||||
Gain (loss) from sale of investment | $ 15,902 | |||||||
Warrants exercise price | $ / shares | $ 2.10 | |||||||
Number of warrants exercised | shares | 7,993,605 | 7,993,605 | 7,993,605 | |||||
Scythian Biosciences Corp. | ||||||||
Long-term investments | ||||||||
Number of investment shares sold | shares | 2,812,300 | 2,812,300 | ||||||
Number of common share purchase warrants sold | shares | 672,125 | 672,125 | ||||||
Proceeds from sale of investment | $ 6,609 | |||||||
Gain (loss) from sale of investment | $ 2,953 | |||||||
Number of investment shares purchased | shares | 123,800 | 123,800 | ||||||
Cost of investment shares | $ 298 | |||||||
National Access Cannabis Corp. | ||||||||
Long-term investments | ||||||||
Number of investment shares purchased | shares | 10,344,505 | 10,344,505 | ||||||
Cost of investment shares | $ 10,481 | |||||||
Number of shares held by the entity | shares | 11,344,505 | 11,344,505 | 11,344,505 | |||||
Total cost of investment | $ 11,574 | |||||||
Fair value of investment | $ 7,941 | |||||||
Aleafia Health Inc | ||||||||
Long-term investments | ||||||||
Number of shares held by the entity | shares | 5,823,831 | 5,823,831 | 5,823,831 | |||||
Total cost of investment | $ 10,000 | |||||||
Fair value of investment | $ 8,445 | |||||||
Term of supply agreement | 5 years | 5 years | ||||||
Number of shares received by investment entity | shares | 6,952,169 | 6,952,169 | 6,952,169 | |||||
Deposit value | $ 10,000 | |||||||
Rapid Dose Therapeutics Inc | ||||||||
Long-term investments | ||||||||
Number of investment shares purchased | shares | 7,200,000 | 7,200,000 | ||||||
Cost of investment shares | $ 5,400 | |||||||
Fair value of investment | $ 5,832 | |||||||
Fire & Flower Inc. | ||||||||
Long-term investments | ||||||||
Number of investment shares purchased | shares | 2,277,000 | 2,277,000 | ||||||
Cost of investment shares | $ 3,416 | |||||||
Number of shares held by the entity | shares | 2,823 | 2,823 | 2,823 | |||||
High Tide Inc | ||||||||
Long-term investments | ||||||||
Warrants exercise price | $ / shares | $ 0.85 | |||||||
Number of warrants received by investment entity | shares | 6,000,000 | 6,000,000 | 6,000,000 | |||||
Number of shares held by the entity | shares | 943,396 | 943,396 | 943,396 | |||||
Number of warrants held by the entity | shares | 6,000,000 | 6,000,000 | 6,000,000 | |||||
Total cost of investment | $ 450 | |||||||
Fair value of investment | $ 340 | |||||||
Number of shares received by investment entity | shares | 943,396 | 943,396 | 943,396 | |||||
Copperstate Farms, LLC and Copperstate Farms Investors, LLC | ||||||||
Long-term investments | ||||||||
Proceeds from sale of investment | $ 20,000 | |||||||
Resolve Digital Health Inc. | ||||||||
Long-term investments | ||||||||
Warrants exercise price | $ / shares | $ 0.65 | |||||||
Number of shares held by the entity | shares | 2,200,026 | 2,200,026 | 2,200,026 | |||||
Number of warrants held by the entity | shares | 2,200,026 | 2,200,026 | 2,200,026 | |||||
Total cost of investment | $ 1,000 | |||||||
Fair value of investment | 1,382 | |||||||
Green Tank Holdings Corp. | ||||||||
Long-term investments | ||||||||
Number of investment shares purchased | shares | 359,208 | 359,208 | ||||||
Cost of investment shares | $ 920 | $ 1,240 | ||||||
Fair value of investment | $ 3,943 | $ 5,334 | ||||||
Number of shares received by investment entity | shares | 1,082,675 | 1,082,675 | 1,082,675 | |||||
Green Tank Holdings Corp. | Preferred shares | ||||||||
Long-term investments | ||||||||
Number of shares held by the entity | shares | 1,540,308 | 1,540,308 | 1,540,308 | |||||
Total cost of investment | $ 1,420 | $ 1,890 | ||||||
IBBZ Krankenhaus GmbH | ||||||||
Long-term investments | ||||||||
Voting interest held by entity | 25.10% | 25.10% | ||||||
Total cost of investment | € 1,294 | $ 1,956 | ||||||
Percentage of net income (loss) entitled by the entity, year 1 to 4 | 5.00% | 5.00% | ||||||
Percentage of net income (loss) entitled by the entity, thereafter | 10.00% | 10.00% | ||||||
Loss from change in fair value due to changes in foreign exchange rate | $ (5) | |||||||
Greenwell Brands GmbH | ||||||||
Long-term investments | ||||||||
Number of investment shares purchased | shares | 1,250 | 1,250 | ||||||
Cost of investment shares | € 100 | $ 152 | ||||||
HighArchy Ventures Ltd. | ||||||||
Long-term investments | ||||||||
Cost of investment shares | $ 9,995 | |||||||
Share split ratio | 10,000 | |||||||
HighArchy Ventures Ltd. | Class A shares | ||||||||
Long-term investments | ||||||||
Number of investment shares purchased | shares | 1,999 | |||||||
HighArchy Ventures Ltd. | Class B shares | ||||||||
Long-term investments | ||||||||
Number of investment shares purchased | shares | 1,999 |
Long-term investments - US legalization options and Green Acre Capital Fund I and II (Details) - CAD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
May 31, 2019 |
May 31, 2018 |
|
Long-term investments | ||
Proceeds from convertible debentures | $ 454,386 | |
Fair value of investment | 64,922 | $ 46,028 |
Gain (loss) from sale of investment | $ 30,391 | |
US legalization options | Liberty Health Sciences Inc. | ||
Long-term investments | ||
Number of options purchased to acquire shares of common stock | 16,029,615 | |
Share Price | $ 1.00 | |
Threshold price per share for specific downside risk protection | $ 1.25 | |
Cash paid in exchange for option to buy back shares | $ 480 | |
Shares divested in exchange for consideration in the form of promissory note | 64,118,462 | |
Gross annual fee as cost of option | $ 7,668 | |
Interest income associated with the promissory note receivable | 7,092 | |
Net annual cost | 576 | |
Proceeds from convertible debentures | 47,448 | |
Contingent fee upon satisfaction of certain conditions | 10,000 | |
US legalization options | GA Opportunities Corp | ||
Long-term investments | ||
Gross annual fee as cost of option | 6,765 | |
Interest income associated with the promissory note receivable | 6,600 | |
Net annual cost | 165 | |
Proceeds from convertible debentures | 89,000 | |
Fair value of assets contributed | 55,000 | |
Cost of investment | 55,000 | |
Cash proceeds from sale of option and promissory note due within six months | 39,000 | |
Green Acre Capital Fund I | ||
Long-term investments | ||
Cost of investment | 2,000 | |
Fair value of investment | 4,290 | |
Proceeds from return of capital from investment | 700 | |
Green Acre Capital Fund II | ||
Long-term investments | ||
Amount committed to invest | 15,000 | |
Cost of investment | 3,000 | |
Proceeds from sale of investment | 500 | |
Gain (loss) from sale of investment | $ 2,500 |
Promissory notes receivable (Details) € in Thousands, $ in Thousands |
12 Months Ended | |
---|---|---|
May 31, 2019
EUR (€)
|
May 31, 2019
CAD ($)
|
|
Disclosure of detailed information about promissory notes receivable | ||
Additions | $ 167,859 | |
Disposal / Impairment | (128,659) | |
Balance at the end of the year | 39,200 | |
Promissory notes receivable | ||
Disclosure of detailed information about promissory notes receivable | ||
Impairment of promissory note receivable | € 4,600 | 0 |
Promissory note due on September 6, 2023 | ||
Disclosure of detailed information about promissory notes receivable | ||
Additions | 59,098 | |
Disposal / Impairment | $ (59,098) | |
Promissory notes receivable interest (as percent) | 12.00% | 12.00% |
Promissory note due on September 24, 2023 | ||
Disclosure of detailed information about promissory notes receivable | ||
Additions | $ 55,000 | |
Disposal / Impairment | $ (55,000) | |
Promissory notes receivable interest (as percent) | 12.00% | 12.00% |
Promissory note due on October 15, 2019 | ||
Disclosure of detailed information about promissory notes receivable | ||
Additions | $ 39,000 | |
Balance at the end of the year | $ 39,000 | |
Promissory notes receivable interest (as percent) | 3.00% | 3.00% |
Promissory note due on October 11, 2021 | ||
Disclosure of detailed information about promissory notes receivable | ||
Additions | $ 7,952 | |
Disposal / Impairment | $ (7,952) | |
Promissory notes receivable interest (as percent) | 3.25% | 3.25% |
Promissory note due on October 31, 2023 | ||
Disclosure of detailed information about promissory notes receivable | ||
Additions | $ 6,609 | |
Disposal / Impairment | $ (6,609) | |
Promissory notes receivable interest (as percent) | 12.00% | 12.00% |
Promissory note with Interest free due on May 1, 2020 | ||
Disclosure of detailed information about promissory notes receivable | ||
Additions | $ 200 | |
Balance at the end of the year | $ 200 |
Income taxes and deferred income taxes - Reconciliation of Income Taxes at Statutory Rate (Details) - CAD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 31, 2019 |
May 31, 2018 |
|
Income taxes and deferred income taxes | ||
Income (loss) before income taxes (recovery) | $ (15,645) | $ 35,856 |
Statutory rate | 26.50% | 26.50% |
Expected income tax expense (recovery) at combined basic federal and provincial tax rate | $ (4,146) | $ 9,502 |
Effect on income taxes of: | ||
Foreign tax differential | (539) | |
Permanent differences | 1,137 | 65 |
Non-deductible share-based compensation and other expenses | 20,161 | 4,737 |
Non-taxable portion of losses (gains) | (15,504) | (7,162) |
Other | (648) | (768) |
Tax assets not recognized | 393 | 34 |
Total tax expense (income) | 854 | 6,408 |
Current | 4,944 | 2,750 |
Future | (4,090) | 3,658 |
Total tax expense (income) | $ 854 | $ 6,408 |
Income taxes and deferred income taxes - Components of deferred tax (Details) - CAD ($) $ in Thousands |
May 31, 2019 |
May 31, 2018 |
---|---|---|
Deferred tax assets | ||
Non-capital loss carry forward | $ 20,133 | $ 4,567 |
Capital loss carry forward | 405 | |
Share issuance and financing fees | 9,689 | 5,443 |
Unrealized loss | 916 | |
Other | 1,102 | 27 |
Deferred tax liabilities | ||
Net book value in excess of undepreciated capital cost | (2,751) | (1,017) |
Intangible assets in excess of tax costs | (101,271) | (64,120) |
Unrealized gain | (6,534) | (1,097) |
Biological assets and inventory in excess of tax costs | (8,001) | (4,377) |
Net deferred tax assets (liabilities) | $ (87,633) | $ (59,253) |
Bank indebtedness (Details) $ in Thousands |
May 31, 2019
CAD ($)
|
---|---|
Bank indebtedness | |
Maximum borrowing capacity | $ 1,000 |
Adjustment to interest rate basis (as a percent) | 0.75% |
Promissory note payable (Details) $ in Thousands, $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
May 31, 2019
AUD ($)
|
May 31, 2019
CAD ($)
|
May 31, 2018
AUD ($)
|
May 31, 2018
CAD ($)
|
May 31, 2019
CAD ($)
|
May 31, 2018
CAD ($)
|
|
Promissory note payable | ||||||
Balance at the beginning of the year | $ 700 | $ 610 | $ 686 | |||
Note payable to Althea | $ 700 | $ 700 | $ (686) | $ (686) | ||
Reduction of promissory note payable balance with respect to products provided | (581) | (63) | ||||
Foreign exchange (gain) loss | (29) | (13) | ||||
Balance at the end of the year | $ 0 | $ 700 | $ 610 | |||
Deduct - principal portion included in current liabilities | (610) | |||||
Promissory note payable non-current | $ 0 | $ 0 |
Long-term debt (Details) € in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
May 31, 2019
EUR (€)
|
May 31, 2019
CAD ($)
|
May 31, 2018
CAD ($)
|
|
Long-term debt | |||
Balance of obligation | $ 67,343 | $ 30,548 | |
Unamortized financing fees | (116) | (71) | |
Principal portion included in current liabilities | (6,332) | (2,140) | |
Long-term debt | $ 60,895 | 28,337 | |
Adjustment to interest rate basis (as a percent) | 0.75% | 0.75% | |
Canadian five year bond interest rate plus 2.73% with a minimum 4.50% | |||
Long-term debt | |||
Balance of obligation | $ 24,022 | ||
Notional Amount | $ 25,000 | ||
Adjustment to interest rate basis (as a percent) | 2.73% | 2.73% | |
Maturity term | 5 years | ||
Amortization period | 15 years | ||
Canadian five year bond interest rate plus 2.73% with a minimum 4.50% | Minimum | |||
Long-term debt | |||
Bearing interest rate | 4.50% | 4.50% | |
Term loan with interest rate 3.95% compounded monthly | |||
Long-term debt | |||
Balance of obligation | $ 23,352 | 24,107 | |
Notional Amount | $ 25,000 | ||
Bearing interest rate | 3.95% | 3.95% | |
Maturity term | 5 years | ||
Amortization period | 15 years | ||
Debt amount repayable in instalment | $ 188 | ||
Term loan with interest rate 3.99% | |||
Long-term debt | |||
Balance of obligation | 946 | 1,057 | |
Notional Amount | $ 1,250 | ||
Bearing interest rate | 3.99% | 3.99% | |
Maturity term | 5 years | ||
Amortization period | 10 years | ||
Debt amount repayable in instalment | $ 13 | ||
Mortgage payable with interest rate 3.95% | |||
Long-term debt | |||
Balance of obligation | 3,380 | 3,515 | |
Notional Amount | $ 3,750 | ||
Bearing interest rate | 3.95% | 3.95% | |
Maturity term | 5 years | ||
Amortization period | 20 years | ||
Debt amount repayable in instalment | $ 23 | ||
Vendor take-back mortgage owed to a related party with interest rate 6.75% | |||
Long-term debt | |||
Balance of obligation | 1,305 | $ 1,869 | |
Notional Amount | $ 2,850 | ||
Bearing interest rate | 6.75% | 6.75% | |
Maturity term | 5 years | ||
Debt amount repayable in instalment | $ 56 | ||
Euro interbank offered rate pus 1.79% | |||
Long-term debt | |||
Balance of obligation | $ 7,169 | ||
Notional Amount | € | € 5,000 | ||
Adjustment to interest rate basis (as a percent) | 1.79% | 1.79% | |
Maturity term | 5 years | ||
Debt amount repayable in instalment | € | € 250 | ||
Euro interbank offered rate pus 2.68% | |||
Long-term debt | |||
Balance of obligation | $ 7,169 | ||
Notional Amount | € | € 5,000 | ||
Adjustment to interest rate basis (as a percent) | 2.68% | 2.68% | |
Maturity term | 5 years | ||
Debt amount repayable in instalment | € | € 250 |
Long-term debt - Repayment (Details) - CAD ($) $ in Thousands |
May 31, 2019 |
May 31, 2018 |
---|---|---|
Long-term debt | ||
Long-term debt subject to fixed interest rates | $ 67,343 | $ 30,548 |
2020 | ||
Long-term debt | ||
Long-term debt subject to fixed interest rates | 6,332 | |
2021 | ||
Long-term debt | ||
Long-term debt subject to fixed interest rates | 6,499 | |
2022 | ||
Long-term debt | ||
Long-term debt subject to fixed interest rates | 6,039 | |
2023 | ||
Long-term debt | ||
Long-term debt subject to fixed interest rates | 6,119 | |
2024 | ||
Long-term debt | ||
Long-term debt subject to fixed interest rates | 6,259 | |
Thereafter | ||
Long-term debt | ||
Long-term debt subject to fixed interest rates | $ 36,095 |
Long-term debt - Additional information (Details) € in Thousands, $ in Thousands |
May 31, 2019
CAD ($)
|
May 30, 2019
EUR (€)
|
May 30, 2019
CAD ($)
|
Nov. 07, 2018
EUR (€)
|
Nov. 07, 2018
CAD ($)
|
Jul. 27, 2018
CAD ($)
|
May 31, 2018
CAD ($)
|
Feb. 13, 2018
CAD ($)
|
May 09, 2017
CAD ($)
|
Jul. 22, 2016
CAD ($)
|
Jun. 30, 2016
CAD ($)
|
---|---|---|---|---|---|---|---|---|---|---|---|
Long-term debt | |||||||||||
Debt | $ 67,343 | $ 30,548 | |||||||||
Canadian five year bond interest rate plus 2.73% with a minimum 4.50% | |||||||||||
Long-term debt | |||||||||||
Debt | 24,022 | ||||||||||
Canadian five year bond interest rate plus 2.73% with a minimum 4.50% | First charge on the property at 223, 231, 239, 265, 269, 271 and 275 Talbot Street West, t, , Leamington Ontario, o | |||||||||||
Long-term debt | |||||||||||
Debt | $ 24,022 | ||||||||||
Interest Rate | 4.68% | ||||||||||
Term loan with interest rate 3.95% compounded monthly | |||||||||||
Long-term debt | |||||||||||
Debt | $ 23,352 | 24,107 | |||||||||
Interest Rate | 3.95% | ||||||||||
Term loan with interest rate 3.95% compounded monthly | First charge on the property at 265 Talbot Street West, t, , Leamington Ontario, o, | |||||||||||
Long-term debt | |||||||||||
Debt | $ 23,352 | ||||||||||
Term loan with interest rate 3.99% | |||||||||||
Long-term debt | |||||||||||
Debt | $ 946 | 1,057 | |||||||||
Interest Rate | 3.99% | ||||||||||
Term loan with interest rate 3.99% | First charge on the property at 265 Talbot Street West, t, , Leamington Ontario, o, | |||||||||||
Long-term debt | |||||||||||
Debt | $ 946 | ||||||||||
Mortgage payable with interest rate 3.95% | |||||||||||
Long-term debt | |||||||||||
Debt | $ 3,380 | 3,515 | |||||||||
Interest Rate | 3.95% | ||||||||||
Mortgage payable with interest rate 3.95% | First charge on the property at 265 Talbot Street West, t, , Leamington Ontario, o, | |||||||||||
Long-term debt | |||||||||||
Debt | $ 3,380 | ||||||||||
Vendor take-back mortgage owed to a related party with interest rate 6.75% | |||||||||||
Long-term debt | |||||||||||
Debt | $ 1,305 | $ 1,869 | |||||||||
Interest Rate | 6.75% | ||||||||||
Vendor take-back mortgage owed to a related party with interest rate 6.75% | Second charge on the property at 265 Talbot Street West, t, , Leamington, n | |||||||||||
Long-term debt | |||||||||||
Debt | $ 1,305 | ||||||||||
Term loan1 | Broken Coast Cannabis Ltd. | |||||||||||
Long-term debt | |||||||||||
Debt | $ 3,000 | ||||||||||
Term loan2 | Broken Coast Cannabis Ltd. | |||||||||||
Long-term debt | |||||||||||
Debt | 1,201 | ||||||||||
Mortgage loan | Broken Coast Cannabis Ltd. | |||||||||||
Long-term debt | |||||||||||
Debt | $ 1,713 | ||||||||||
Euro interbank offered rate | CC Pharma GmbH | |||||||||||
Long-term debt | |||||||||||
Debt | € 9,500 | $ 14,338 | € 17,000 | $ 25,460 |
Convertible debentures (Details) $ / shares in Units, $ in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
May 31, 2019
USD ($)
D
|
May 31, 2019
CAD ($)
D
$ / shares
|
May 31, 2018
CAD ($)
|
|
Convertible debentures | |||
Principal amount issued | $ 454,386 | ||
Balance at the end of the year | 421,366 | ||
Convertible debentures | |||
Convertible debentures | |||
Balance at the beginning of the year | 0 | $ 0 | |
Principal amount issued | 469,805 | 0 | |
Fair value adjustment | (48,439) | 0 | |
Balance at the end of the year | $ 421,366 | $ 0 | |
Maturity term | 5 years | 5 years | |
Bearing interest rate | 5.25% | 5.25% | |
Conversion basis, holders | $ 1 | ||
Initial conversion rate | 106.5644 | 106.5644 | |
Initial conversion price | $ / shares | $ 9.38 | ||
Number of trading days | D | 30 | 30 | |
Conversion basis, percentage on conversion price | 130 | 130 | |
Number of Business days | D | 5 | 5 | |
Measurement period | D | 5 | 5 | |
Conversion basis, percentage on sale price and conversion price | 98 | 98 | |
Percentage of Redemption | 100 | 100 | |
Convertible debentures | Minimum | |||
Convertible debentures | |||
Number of trading days | D | 20 | 20 | |
Convertible debentures | Unsecured Loan [Member] | |||
Convertible debentures | |||
Principal amount issued | $ 350,000 |
Share capital (Details) $ / shares in Units, $ in Thousands |
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018
$ / shares
|
Jun. 30, 2018
CAD ($)
$ / shares
shares
|
May 31, 2019
CAD ($)
USD ($)
$ / shares
shares
|
May 31, 2018
CAD ($)
shares
|
|
Share capital | ||||
Balance | $ 1,113,981 | $ 1,113,981 | ||
Share issuance - warrants exercised | 1,723 | $ 3,682 | ||
Share issuance - options exercised | 5,096 | 4,329 | ||
Share issuance - deferred share units | 953 | 62 | ||
Balance | 1,655,273 | 1,113,981 | ||
Income tax recovery on share issuance costs | $ 3,426 | 3,002 | ||
Shares held | shares | 600,000 | |||
Broken Coast Cannabis Ltd. | ||||
Share capital | ||||
Share issuance - acquisition | $ 297 | $ 109,000 | ||
LATAM Holdings Inc. | ||||
Share capital | ||||
Share issuance - acquisition | 285,241 | |||
Purchase Price Per Share Of Acquisition | $ / shares | $ 17.47 | |||
June 2018 Bought deal | ||||
Share capital | ||||
Shares issuance - Bought Deal | 245,925 | |||
Purchase Price | $ / shares | $ 11.85 | |||
Share capital | ||||
Share capital | ||||
Balance | $ 1,113,981 | $ 1,113,981 | ||
Balance (in shares) | shares | 210,169,924 | 210,169,924 | 138,628,704 | |
Share issuance - warrants exercised | $ 1,762 | $ 3,767 | ||
Share issuance - warrants exercised (in shares) | shares | 550,335 | 2,388,636 | ||
Share issuance - options exercised | $ 15,029 | $ 11,559 | ||
Share issuance - options exercised (in shares) | 2,632,078 | |||
Share issuance - deferred share units | $ 953 | $ 62 | ||
Share issuance - deferred share units (in shares) | shares | 103,000 | 5,050 | ||
Balance | $ 1,655,273 | $ 1,113,981 | ||
Income tax recovery on share issuance costs | 3,426 | 3,002 | ||
Share capital | Broken Coast Cannabis Ltd. | ||||
Share capital | ||||
Share issuance - acquisition | $ 297 | $ 109,000 | ||
Share issuance - acquisition (in shares) | shares | 19,963 | 8,363,651 | ||
Share capital | LATAM Holdings Inc. | ||||
Share capital | ||||
Share issuance - acquisition | $ 273,900 | |||
Share issuance - acquisition (in shares) | shares | 15,678,310 | |||
Share capital | June 2018 Bought deal | ||||
Share capital | ||||
Shares issuance - Bought Deal | $ 245,925 | |||
Shares issuance - Bought Deal (in shares) | shares | 21,835,510 | |||
Warrants | ||||
Share capital | ||||
Share issuance - warrants exercised | $ (39) | $ (85) | ||
Warrants | Minimum | ||||
Share capital | ||||
Exercise price of warrants | $ / shares | $ 1.50 | |||
Warrants | Maximum | ||||
Share capital | ||||
Exercise price of warrants | $ / shares | 20.30 | |||
Stock options | Minimum | ||||
Share capital | ||||
Exercise price of stock options | $ / shares | 0.60 | |||
Stock options | Maximum | ||||
Share capital | ||||
Exercise price of stock options | $ / shares | $ 20.19 |
Warrants - Type Of Warrants (Details) $ / shares in Units, $ in Thousands |
12 Months Ended |
---|---|
May 31, 2019
CAD ($)
$ / shares
shares
| |
Warrant | |
Warrants | |
Number of Warrants issued or issuable | shares | 2,292,800 |
Weighted average price | $ / shares | $ 12.25 |
Warrants Issued, Value | $ | $ 1,336 |
Warrant 2019 | |
Warrants | |
Number of Warrants issued or issuable | shares | 798,997 |
Weighted average price | $ / shares | $ 1.50 |
Warrant 2021 | |
Warrants | |
Number of Warrants issued or issuable | shares | 200,000 |
Weighted average price | $ / shares | $ 3.14 |
Warrants Issued, Value | $ | $ 360 |
Nuuvera warrant | |
Warrants | |
Number of Warrants issued or issuable | shares | 1,293,803 |
Weighted average price | $ / shares | $ 20.30 |
Warrants Issued, Value | $ | $ 976 |
Warrants - Rollforward (Details) - Warrant |
12 Months Ended | |
---|---|---|
May 31, 2019
CAD ($)
item
|
May 31, 2018
CAD ($)
item
|
|
Warrants | ||
Outstanding, beginning of the year (in shares) | item | 2,843,138 | 3,885,908 |
Issued during the year (in shares) | item | 1,345,866 | |
Exercised during the year (in shares) | item | (550,335) | (2,388,636) |
Cancelled during the year (in shares) | item | (3) | |
Outstanding, end of the year (in shares) | item | 2,292,800 | 2,843,138 |
Outstanding, beginning of the year (in Canadian dollars per share) | $ | $ 10.52 | $ 1.61 |
Issued during the year (in Canadian dollars per share) | $ | 20.30 | |
Exercised during the year (in Canadian dollars per share) | $ | 3.29 | 1.54 |
Cancelled during the year (in Canadian dollars per share) | $ | 1.75 | |
Outstanding, end of the year (in Canadian dollars per share) | $ | $ 12.25 | $ 10.52 |
Warrants - Additional information (Details) - Nuuvera Corp |
Mar. 31, 2018
$ / shares
shares
|
---|---|
Warrants | |
Number of warrants | shares | 3,795,450 |
Exercise price | $ 7.20 |
Shares issued per share | 0.3546 |
Total consideration in cash | $ 0.62 |
Shares | |
Warrants | |
Common shares for issuance | shares | 1,345,866 |
Stock options - Narrative (Details) - Stock options $ in Thousands |
12 Months Ended | |
---|---|---|
May 31, 2019
CAD ($)
Y
|
May 31, 2018
CAD ($)
|
|
Stock options | ||
Maximum number of shares reserved for issuance of stock options (in percent) | 10.00% | |
Share-based compensation expense | $ 24,078 | $ 15,780 |
Fair value of options granted | $ 21,952 | $ 28,912 |
Maximum | ||
Stock options | ||
Options exercisable term (in years) | Y | 10 |
Stock options - Rollforward (Details) - Stock options |
12 Months Ended | |
---|---|---|
May 31, 2019
CAD ($)
Options
|
May 31, 2018
CAD ($)
Options
|
|
Stock options | ||
Outstanding, beginning of the year (in shares) | Options | 8,956,195 | 5,926,001 |
Exercised during the year (in shares) | Options | (3,164,174) | (2,637,363) |
Issued during the year (in shares) | Options | 3,005,000 | 6,703,330 |
Cancelled during the year (in shares) | Options | (982,025) | (1,035,773) |
Outstanding, end of the year (in shares) | Options | 7,814,996 | 8,956,195 |
Exercisable, end of the year (in shares) | Options | 4,474,966 | 4,507,696 |
Outstanding, beginning of the year (in Canadian dollars per share) | $ | $ 7.60 | $ 1.99 |
Exercised during the year (in Canadian dollars per share) | $ | 4.05 | 2.3 |
Issued during the year (in Canadian dollars per share) | $ | 13.05 | 11.12 |
Cancelled during the year (in Canadian dollars per share) | $ | 8.27 | 11.77 |
Outstanding, end of the year (in Canadian dollars per share) | $ | 11.05 | 7.60 |
Exercisable, end of the year (in Canadian dollars per share) | $ | $ 9.54 | $ 4.04 |
Stock options - Granted and Exercise price range (Details) - Stock options |
1 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
May 31, 2019
Options
Y
|
Apr. 30, 2019
CAD ($)
Options
Y
|
Feb. 28, 2019
CAD ($)
Options
Y
|
Oct. 31, 2018
CAD ($)
Options
Y
|
Sep. 30, 2018
CAD ($)
Options
Y
|
Jul. 31, 2018
CAD ($)
Options
Y
|
Jun. 30, 2018
CAD ($)
Options
Y
|
May 31, 2019
Options
Y
|
May 31, 2018
Options
|
|
Stock options | |||||||||
Issued during the year (in shares) | 3,005,000 | 6,703,330 | |||||||
Vested during the year (in shares) | 3,164,174 | 2,637,363 | |||||||
Options cancelled (in shares) | 982,025 | 1,035,773 | |||||||
Maximum | |||||||||
Stock options | |||||||||
Stock options Exercisable (in years) | Y | 10 | 10 | |||||||
Exercise price $11.78 per share | Officers | |||||||||
Stock options | |||||||||
Issued during the year (in shares) | 250,000 | ||||||||
Exercise price (in Canadian dollars per share) | $ | $ 11.78 | ||||||||
Stock options Exercisable (in years) | Y | 3 | ||||||||
Vested during the year (in shares) | 83,331 | ||||||||
Remaining period to be vested (in years) | 2 years | ||||||||
Options cancelled (in shares) | 133,335 | ||||||||
Exercise price between $11.51 and $11.85 per share | Employees | |||||||||
Stock options | |||||||||
Issued during the year (in shares) | 820,000 | ||||||||
Stock options Exercisable (in years) | Y | 5 | ||||||||
Vested during the year (in shares) | 50,000 | ||||||||
Remaining period to be vested (in years) | 3 years | ||||||||
Options cancelled (in shares) | 50,000 | ||||||||
Exercise price between $11.51 and $11.85 per share | Employees | Minimum | |||||||||
Stock options | |||||||||
Exercise price (in Canadian dollars per share) | $ | $ 11.51 | ||||||||
Exercise price between $11.51 and $11.85 per share | Employees | Maximum | |||||||||
Stock options | |||||||||
Exercise price (in Canadian dollars per share) | $ | $ 11.85 | ||||||||
Exercise price $19.38 per share | Employees | |||||||||
Stock options | |||||||||
Issued during the year (in shares) | 250,000 | ||||||||
Exercise price (in Canadian dollars per share) | $ | $ 19.38 | ||||||||
Stock options Exercisable (in years) | Y | 5 | ||||||||
Vested during the year (in shares) | 0 | ||||||||
Remaining period to be vested (in years) | 3 years | ||||||||
Options cancelled (in shares) | 33,334 | ||||||||
Exercise price $19.70 per share | Employees | |||||||||
Stock options | |||||||||
Issued during the year (in shares) | 80,000 | ||||||||
Exercise price (in Canadian dollars per share) | $ | $ 19.70 | ||||||||
Stock options Exercisable (in years) | Y | 5 | ||||||||
Vested during the year (in shares) | 0 | ||||||||
Remaining period to be vested (in years) | 3 years | ||||||||
Exercise price between $9.92 and $13.31 per share | Officers and employees | |||||||||
Stock options | |||||||||
Issued during the year (in shares) | 1,525,000 | ||||||||
Vested during the year (in shares) | 1,100,000 | ||||||||
Remaining period to be vested (in years) | 3 years | ||||||||
Options cancelled (in shares) | 30,000 | ||||||||
Exercise price between $9.92 and $13.31 per share | Officers and employees | Minimum | |||||||||
Stock options | |||||||||
Exercise price (in Canadian dollars per share) | $ | $ 9.92 | ||||||||
Stock options Exercisable (in years) | Y | 3 | ||||||||
Exercise price between $9.92 and $13.31 per share | Officers and employees | Maximum | |||||||||
Stock options | |||||||||
Exercise price (in Canadian dollars per share) | $ | $ 13.31 | ||||||||
Stock options Exercisable (in years) | Y | 5 | ||||||||
Exercise price $11.45 per share | Employees | |||||||||
Stock options | |||||||||
Issued during the year (in shares) | 80,000 | ||||||||
Exercise price (in Canadian dollars per share) | $ | $ 11.45 | ||||||||
Stock options Exercisable (in years) | Y | 5 | ||||||||
Vested during the year (in shares) | 0 | ||||||||
Remaining period to be vested (in years) | 3 years |
Stock options - Outstanding options and fair value of options (Details) - Stock options |
May 31, 2019
CAD ($)
Options
|
May 31, 2018
CAD ($)
Options
|
May 31, 2017
CAD ($)
Options
|
---|---|---|---|
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 11.05 | $ 7.60 | $ 1.99 |
Number of options (in shares) | 7,814,996 | 8,956,195 | 5,926,001 |
Vested and exercisable (in shares) | 4,474,966 | 4,507,696 | |
September 2019 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 3.00 | ||
Number of options (in shares) | 42,365 | ||
Vested and exercisable (in shares) | 42,365 | ||
November 2019 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 3.90 | ||
Number of options (in shares) | 591,318 | ||
Vested and exercisable (in shares) | 591,318 | ||
December 2019 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 5.25 | ||
Number of options (in shares) | 400,000 | ||
Vested and exercisable (in shares) | 33,333 | ||
January 2020 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 5.72 | ||
Number of options (in shares) | 1,834 | ||
Vested and exercisable (in shares) | 1,834 | ||
April 2020 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 7.92 | ||
Number of options (in shares) | 38,334 | ||
Vested and exercisable (in shares) | 38,334 | ||
June 2020 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 5.44 | ||
Number of options (in shares) | 133,334 | ||
Vested and exercisable (in shares) | 116,667 | ||
July 2020 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 5.24 | ||
Number of options (in shares) | 538,660 | ||
Vested and exercisable (in shares) | 434,983 | ||
September 2020 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 0.85 | ||
Number of options (in shares) | 185,000 | ||
Vested and exercisable (in shares) | 185,000 | ||
October 2020 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 6.90 | ||
Number of options (in shares) | 156,667 | ||
Vested and exercisable (in shares) | 26,666 | ||
November 2020 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 9.05 | ||
Number of options (in shares) | 136,667 | ||
Vested and exercisable (in shares) | 43,333 | ||
November 2020 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 9.28 | ||
Number of options (in shares) | 50,000 | ||
Vested and exercisable (in shares) | 33,333 | ||
December 2020 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 14.06 | ||
Number of options (in shares) | 100,000 | ||
Vested and exercisable (in shares) | 66,666 | ||
January 2021 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 21.70 | ||
Number of options (in shares) | 10,000 | ||
Vested and exercisable (in shares) | 6,666 | ||
January 2021 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 22.89 | ||
Number of options (in shares) | 143,333 | ||
Vested and exercisable (in shares) | 86,665 | ||
January 2021 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 22.08 | ||
Number of options (in shares) | 50,000 | ||
Vested and exercisable (in shares) | 33,333 | ||
March 2021 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 14.39 | ||
Number of options (in shares) | 20,000 | ||
Vested and exercisable (in shares) | 13,333 | ||
March 2021 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 9.98 | ||
Number of options (in shares) | 200,000 | ||
Vested and exercisable (in shares) | 133,333 | ||
March 2021 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 12.39 | ||
Number of options (in shares) | 50,000 | ||
Vested and exercisable (in shares) | 33,333 | ||
April 2021 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 11.40 | ||
Number of options (in shares) | 380,000 | ||
Vested and exercisable (in shares) | 266,666 | ||
April 2021 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 9.92 | ||
Number of options (in shares) | 400,000 | ||
Vested and exercisable (in shares) | 300,000 | ||
April 2021 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 11.45 | ||
Number of options (in shares) | 66,667 | ||
Vested and exercisable (in shares) | 33,333 | ||
May 2021 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 20.19 | ||
Number of options (in shares) | 908,500 | ||
Vested and exercisable (in shares) | 241,832 | ||
June 2021 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 1.40 | ||
Number of options (in shares) | 168,335 | ||
Vested and exercisable (in shares) | 168,335 | ||
June 2021 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 11.78 | ||
Number of options (in shares) | 116,665 | ||
Vested and exercisable (in shares) | 83,331 | ||
July 2021 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 11.85 | ||
Number of options (in shares) | 150,000 | ||
Vested and exercisable (in shares) | 50,000 | ||
August 2021 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 1.64 | ||
Number of options (in shares) | 65,000 | ||
Vested and exercisable (in shares) | 44,991 | ||
September 2021 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 19.38 | ||
Number of options (in shares) | 66,666 | ||
Vested and exercisable (in shares) | 33,332 | ||
October 2022 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 6.90 | ||
Number of options (in shares) | 74,000 | ||
Vested and exercisable (in shares) | 74,000 | ||
July 2023 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 11.51 | ||
Number of options (in shares) | 80,000 | ||
July 2023 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 11.85 | ||
Number of options (in shares) | 528,000 | ||
September 2023 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 19.38 | ||
Number of options (in shares) | 150,000 | ||
October 2023 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 19.70 | ||
Number of options (in shares) | 80,000 | ||
February 2024 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 12.77 | ||
Number of options (in shares) | 395,000 | ||
February 2024 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 13.31 | ||
Number of options (in shares) | 1,000,000 | ||
Vested and exercisable (in shares) | 1,000,000 | ||
April 2024 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 11.45 | ||
Number of options (in shares) | 80,000 | ||
July 2027 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 2.52 | ||
Number of options (in shares) | 59,689 | ||
Vested and exercisable (in shares) | 59,689 | ||
November 2027 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 6.29 | ||
Number of options (in shares) | 39,792 | ||
Vested and exercisable (in shares) | 39,792 | ||
March 2028 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 12.29 | ||
Number of options (in shares) | 119,378 | ||
Vested and exercisable (in shares) | 119,378 | ||
March 2028 | |||
Stock options | |||
Weighted average exercise price (in canadian dollars per share) | $ | $ 14.38 | ||
Number of options (in shares) | 39,792 | ||
Vested and exercisable (in shares) | 39,792 |
Stock options - Inputs (Details) - Stock options |
12 Months Ended |
---|---|
May 31, 2019 | |
Stock options | |
Volatility (as a percent) | 70.00% |
Forfeiture rate (as a percent) | 0.00% |
Dividend yield (as a percent) | 0.00% |
Minimum | |
Stock options | |
Risk-free rate (as a percent) | 2.00% |
Expected life (years) | 3 years |
Maximum | |
Stock options | |
Risk-free rate (as a percent) | 2.08% |
Expected life (years) | 5 years |
Non-controlling interest (Details) - CAD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 31, 2019 |
May 31, 2018 |
|
Non-controlling interest | ||
Current assets | $ 780,829 | $ 194,612 |
Current liabilities | (138,545) | (43,854) |
Non-controlling interests | 28,409 | 9,580 |
Revenue | 237,110 | 36,917 |
Net comprehensive income (loss) | (16,618) | 28,647 |
Non-controlling interest | (1,951) | |
Subsidiaries | ||
Non-controlling interest | ||
Current assets | 10,117 | 7,313 |
Non-current assets | 307,515 | 83,207 |
Current liabilities | (8,173) | (10,085) |
Non-current liabilities | (165,389) | (60,884) |
Net assets | 144,070 | 19,551 |
Revenue | 230 | |
Total expenses | 6,172 | |
Net comprehensive income (loss) | (5,942) | |
Aphria Diamond | ||
Non-controlling interest | ||
Current assets | 2,598 | 7,313 |
Non-current assets | 171,314 | 83,207 |
Current liabilities | (5,743) | (10,085) |
Non-current liabilities | (150,892) | (60,884) |
Net assets | $ 17,277 | $ 19,551 |
Non-controlling interest % | 49.00% | 49.00% |
Non-controlling interests | $ 8,466 | $ 9,580 |
Total expenses | 2,274 | |
Net comprehensive income (loss) | (2,274) | |
Non-controlling interest | (1,114) | |
CannInvest Africa Ltd. | ||
Non-controlling interest | ||
Current assets | 2 | |
Current liabilities | (3) | |
Non-current liabilities | (9) | |
Net assets | $ (10) | |
Non-controlling interest % | 50.00% | 0.00% |
Non-controlling interests | $ (5) | |
Total expenses | 10 | |
Net comprehensive income (loss) | (10) | |
Non-controlling interest | (5) | |
Verve Dynamics | ||
Non-controlling interest | ||
Current assets | 185 | |
Non-current assets | 14,635 | |
Current liabilities | (2,155) | |
Net assets | $ 12,665 | |
Non-controlling interest % | 70.00% | 0.00% |
Non-controlling interests | $ 8,866 | |
Total expenses | 839 | |
Net comprehensive income (loss) | (839) | |
Non-controlling interest | (587) | |
Nuuvera Malta Ltd. | ||
Non-controlling interest | ||
Current assets | 1,813 | |
Non-current assets | 741 | |
Current liabilities | (178) | |
Non-current liabilities | (3,196) | |
Net assets | $ (820) | |
Non-controlling interest % | 10.00% | 0.00% |
Non-controlling interests | $ (82) | |
Revenue | 230 | |
Total expenses | 1,046 | |
Net comprehensive income (loss) | (816) | |
Non-controlling interest | (82) | |
Marigold | ||
Non-controlling interest | ||
Current assets | 441 | |
Non-current assets | 7,872 | |
Current liabilities | (16) | |
Non-current liabilities | (1,654) | |
Net assets | $ 6,643 | |
Non-controlling interest % | 5.00% | 0.00% |
Non-controlling interests | $ 332 | |
Total expenses | 757 | |
Net comprehensive income (loss) | (757) | |
Non-controlling interest | (38) | |
ColCanna S.A.S. | ||
Non-controlling interest | ||
Current assets | 5,078 | |
Non-current assets | 112,953 | |
Current liabilities | (78) | |
Non-current liabilities | (9,638) | |
Net assets | $ 108,315 | |
Non-controlling interest % | 10.00% | 0.00% |
Non-controlling interests | $ 10,832 | |
Total expenses | 1,246 | |
Net comprehensive income (loss) | (1,246) | |
Non-controlling interest | $ (125) |
General and administrative expenses (Details) - CAD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 31, 2019 |
May 31, 2018 |
|
General and administrative expenses | ||
Execuive compensation | $ 5,821 | $ 1,794 |
Consulting fees | 6,517 | 1,154 |
Office and general | 16,511 | 3,166 |
Professional fees | 11,790 | 2,951 |
Salaries and wages | 19,627 | 3,295 |
Insurance | 5,356 | 396 |
Travel and accommodation | 3,116 | 889 |
Rent | 1,014 | 256 |
Total | $ 69,752 | $ 13,901 |
Share-based compensation (Details) $ in Thousands |
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
May 31, 2019
EquityInstruments
|
May 31, 2018
EquityInstruments
|
May 31, 2019
CAD ($)
EquityInstruments
|
May 31, 2018
CAD ($)
|
|
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Amounts charged to share-based payment reserve in respect of share-based compensation | $ 24,078 | $ 15,780 | ||
Share-based compensation accrued | 187 | (44) | ||
Share-based compensation issued on behalf of a related party | (32) | |||
Shares for services compensation | 187 | |||
Deferred share units expensed in the period | 588 | 1,983 | ||
Restricted share units expensed in the period | 1,227 | |||
Total | $ 26,080 | $ 17,874 | ||
Deferred share units | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares issued | EquityInstruments | 96,833 | |||
Number of shares forfeited | EquityInstruments | 312,000 | |||
Number of shares outstanding | EquityInstruments | 136,958 | 136,958 | ||
Restricted share units | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares issued | EquityInstruments | 197,600 | |||
Number of shares outstanding | EquityInstruments | 197,600 | 197,600 | ||
Number of vested shares, outstanding | EquityInstruments | 114,550 |
Non-operating income (loss) (Details) - CAD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 31, 2019 |
May 31, 2018 |
|
Non-operating income (loss) | ||
Consulting revenue | $ 1,244 | |
Foreign exchange gain | $ 915 | 124 |
Loss on marketable securities | (178) | (2,155) |
Gain (loss) on sale of capital assets | 55 | (191) |
Gain on dilution of ownership in equity investee | 2,210 | 7,535 |
Loss from equity investees | (1,123) | (9,295) |
Gain on sale of equity investee | 57,351 | 26,347 |
Deferred gain on sale of intellectual property | 340 | 1,304 |
Interest income | 14,350 | 6,362 |
Interest expense | (7,775) | (1,350) |
Unrealized (loss) gain on convertible notes | (3,399) | 4,135 |
Gain on long-term investments | 19,651 | 26,675 |
Unrealized gain on convertible debentures | 48,439 | |
Unrealized loss on financial liabilities | (1,326) | (12,451) |
Total | $ 129,510 | $ 48,284 |
Gain on long-term investments (Details) - CAD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 31, 2019 |
May 31, 2018 |
|
Gain on long-term investments | ||
Proceeds | $ 216,195 | |
Opening Fair Value / cost | 185,804 | |
Gain (loss) on disposal | 30,391 | |
Change in fair value | (10,740) | |
Total | 19,651 | $ 26,675 |
Level 1 | ||
Gain on long-term investments | ||
Change in fair value | (12,211) | |
Level 3 | ||
Gain on long-term investments | ||
Change in fair value | 1,471 | |
Shares | CannaRoyalty Corp. | Level 1 | ||
Gain on long-term investments | ||
Proceeds | 4,111 | |
Opening Fair Value / cost | 3,765 | |
Gain (loss) on disposal | 346 | |
Total | 346 | |
Shares | MaasRoots, Inc. | Level 1 | ||
Gain on long-term investments | ||
Proceeds | 1 | |
Opening Fair Value / cost | 164 | |
Gain (loss) on disposal | (163) | |
Total | (163) | |
Shares | North Bud Farms Inc. | Level 1 | ||
Gain on long-term investments | ||
Proceeds | 373 | |
Opening Fair Value / cost | 253 | |
Gain (loss) on disposal | 120 | |
Total | 120 | |
Shares | Hiku Brands Company Ltd. | Level 1 | ||
Gain on long-term investments | ||
Proceeds | 30,542 | |
Opening Fair Value / cost | 13,558 | |
Gain (loss) on disposal | 16,984 | |
Total | 16,984 | |
Shares | Scythian Biosciences Corp. | Level 1 | ||
Gain on long-term investments | ||
Proceeds | 6,609 | |
Opening Fair Value / cost | 8,901 | |
Gain (loss) on disposal | (2,292) | |
Total | (2,292) | |
Shares | Copperstate Farms, LLC | Level 3 | ||
Gain on long-term investments | ||
Proceeds | 5,300 | |
Opening Fair Value / cost | 5,300 | |
Shares | Copperstate Farms Investors, LLC | Level 3 | ||
Gain on long-term investments | ||
Proceeds | 14,700 | |
Opening Fair Value / cost | 14,700 | |
Warrants | Hiku Brands Company Ltd. | Level 2 | ||
Gain on long-term investments | ||
Proceeds | 17,611 | |
Opening Fair Value / cost | 18,693 | |
Gain (loss) on disposal | (1,082) | |
Total | (1,082) | |
Warrants | Scythian Biosciences Corp. | Level 2 | ||
Gain on long-term investments | ||
Opening Fair Value / cost | 661 | |
Gain (loss) on disposal | (661) | |
Total | (661) | |
US legalization options | Level 3 | ||
Gain on long-term investments | ||
Proceeds | 136,448 | |
Opening Fair Value / cost | 116,809 | |
Gain (loss) on disposal | 19,639 | |
Total | 19,639 | |
Green Acre Capital Fund II | ||
Gain on long-term investments | ||
Gain (loss) on disposal | 2,500 | |
Green Acre Capital Fund II | Level 3 | ||
Gain on long-term investments | ||
Proceeds | 500 | |
Opening Fair Value / cost | 3,000 | |
Gain (loss) on disposal | (2,500) | |
Total | (2,500) | |
Long-term investments | Level 3 | ||
Gain on long-term investments | ||
Change in fair value | (10,740) | |
Total | $ (10,740) |
Earnings (loss) per share - Basic earnings (loss) per share (Details) - CAD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
May 31, 2019 |
May 31, 2018 |
|
Basic earnings (loss) per share: | ||
Net income (loss) for the year | $ (16,499) | $ 29,448 |
Average number of common shares outstanding during the year | 242,763,558 | 161,026,463 |
Earnings (loss) per share - basic | $ (0.07) | $ 0.18 |
Earnings (loss) per share - Diluted earnings per share (Details) - CAD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
May 31, 2019 |
May 31, 2018 |
|
Diluted earnings per share: | ||
Net income (loss) for the year | $ (16,499) | $ 29,448 |
Average number of common shares outstanding during the year | 242,763,558 | 161,026,463 |
"In the money" warrants outstanding during the year | 1,293,890 | |
"In the money" options outstanding during the year | 3,593,647 | |
Total | 242,763,558 | 165,914,000 |
Earnings (loss) per share - diluted | $ (0.07) | $ 0.18 |
Change in non-cash working capital (Details) - CAD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 31, 2019 |
May 31, 2018 |
|
Change in non-cash working capital | ||
Decrease (increase) in accounts receivable | $ 12,458 | $ (1,797) |
Decrease (increase) in other current assets | 5,715 | (7,628) |
Decrease (increase) in inventory, net of fair value adjustment | (22,151) | (7,045) |
Decrease (increase) in biological assets, net of fair value adjustment | (17,322) | (367) |
Increase (decrease) in accounts payable and accrued liabilities | (10,998) | 3,764 |
Increase (decrease) in income taxes payable | (882) | 2,662 |
Increase (decrease) in deferred revenue | 11,689 | |
Total | $ (21,491) | $ (10,411) |
Financial risk management and financial instruments (Details) - CAD ($) $ in Thousands |
May 31, 2019 |
May 31, 2018 |
---|---|---|
Disclosure of detailed information about financial instruments [line items] | ||
Long-term debt subject to fixed interest rates | $ 67,343 | $ 30,548 |
Fixed interest rates | ||
Disclosure of detailed information about financial instruments [line items] | ||
Long-term debt subject to fixed interest rates | 28,982 | |
Fair value of the Company's long-term debt in repayment | $ 28,377 |
Financial risk management and financial instruments - Fair Value hierarchy (Details) - Financial assets at FVTPL - CAD ($) $ in Thousands |
May 31, 2019 |
May 31, 2018 |
---|---|---|
Financial risk management and financial instruments | ||
Financial assets | $ 668,148 | $ 188,898 |
Level 1 | ||
Financial risk management and financial instruments | ||
Financial assets | 612,799 | 138,399 |
Level 2 | ||
Financial risk management and financial instruments | ||
Financial assets | 2,567 | |
Level 3 | ||
Financial risk management and financial instruments | ||
Financial assets | 55,349 | 47,932 |
Cash and cash equivalents | ||
Financial risk management and financial instruments | ||
Financial assets | 550,797 | 59,737 |
Cash and cash equivalents | Level 1 | ||
Financial risk management and financial instruments | ||
Financial assets | 550,797 | 59,737 |
Marketable securities | ||
Financial risk management and financial instruments | ||
Financial assets | 20,199 | 45,062 |
Marketable securities | Level 1 | ||
Financial risk management and financial instruments | ||
Financial assets | 20,199 | 45,062 |
Convertible notes receivable | ||
Financial risk management and financial instruments | ||
Financial assets | 32,230 | 18,071 |
Convertible notes receivable | Level 2 | ||
Financial risk management and financial instruments | ||
Financial assets | 0 | |
Convertible notes receivable | Level 3 | ||
Financial risk management and financial instruments | ||
Financial assets | 32,230 | 18,071 |
Long-term investments | ||
Financial risk management and financial instruments | ||
Financial assets | 64,922 | 66,028 |
Long-term investments | Level 1 | ||
Financial risk management and financial instruments | ||
Financial assets | 41,803 | 33,600 |
Long-term investments | Level 2 | ||
Financial risk management and financial instruments | ||
Financial assets | 2,567 | |
Long-term investments | Level 3 | ||
Financial risk management and financial instruments | ||
Financial assets | $ 23,119 | $ 29,861 |
Financial risk management and financial instruments - Statement of changes in the level 3 items (Details) $ in Thousands |
12 Months Ended |
---|---|
May 31, 2019
CAD ($)
| |
Reconciliation of changes in level 3 | |
Financial assets at the beginning of period | $ 47,932 |
Acquisitions | 89,049 |
Disposals | (79,704) |
Unrealized gain on fair value | (1,928) |
Financial assets at the End of period | 55,349 |
Unlisted equity securities | |
Reconciliation of changes in level 3 | |
Financial assets at the beginning of period | 29,861 |
Acquisitions | 69,549 |
Disposals | (77,762) |
Unrealized gain on fair value | 1,471 |
Financial assets at the End of period | 23,119 |
Trading derivatives | |
Reconciliation of changes in level 3 | |
Financial assets at the beginning of period | 18,071 |
Acquisitions | 19,500 |
Disposals | (1,942) |
Unrealized gain on fair value | (3,399) |
Financial assets at the End of period | $ 32,230 |
Financial risk management and financial instruments - Credit risk (Details) - Trade receivables - Credit risk $ in Thousands |
May 31, 2019
CAD ($)
|
---|---|
Financial risk management and financial instruments | |
Financial assets | $ 25,488 |
0-30 days | |
Financial risk management and financial instruments | |
Financial assets | $ 20,777 |
% outstanding | 82.00% |
31-60 days | |
Financial risk management and financial instruments | |
Financial assets | $ 3,333 |
% outstanding | 13.00% |
61-90 days | |
Financial risk management and financial instruments | |
Financial assets | $ 237 |
% outstanding | 1.00% |
90+ days | |
Financial risk management and financial instruments | |
Financial assets | $ 1,141 |
% outstanding | 4.00% |
Financial risk management and financial instruments - Currency risk (Details) - Currency rate risk $ in Thousands |
May 31, 2019
CAD ($)
|
---|---|
Financial risk management and financial instruments | |
Percentage change in foreign exchange rate which will result in unrealized gain or loss | 1.00% |
Unrealized gain or loss by 1% change in the foreign exchange rate | $ 4,000 |
Commitments and contingencies - Minimum payments payable over the next five years (Details) $ in Thousands |
12 Months Ended |
---|---|
May 31, 2019
CAD ($)
| |
Commitments and contingencies | |
Purchase orders outstanding to capital asset expansion | $ 49,364 |
Minimum lease payments payable | 55,474 |
2020 | |
Commitments and contingencies | |
Minimum lease payments payable | 50,689 |
2021 | |
Commitments and contingencies | |
Minimum lease payments payable | 942 |
2022 | |
Commitments and contingencies | |
Minimum lease payments payable | 752 |
2023 | |
Commitments and contingencies | |
Minimum lease payments payable | 711 |
2024 | |
Commitments and contingencies | |
Minimum lease payments payable | 656 |
Thereafter | |
Commitments and contingencies | |
Minimum lease payments payable | $ 1,724 |
Segment reporting (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
May 31, 2019
CAD ($)
segment
|
May 31, 2018
CAD ($)
|
|
Segment information | ||
Number of operating segments | segment | 3 | |
Revenue | $ 237,110 | $ 36,917 |
Income (loss) before income taxes | (15,645) | 35,856 |
Impairment | 58,039 | |
Cannabis operations | ||
Segment information | ||
Revenue | 78,853 | 36,917 |
Income (loss) before income taxes | 726 | 39,128 |
Impairment | 58,039 | |
Distribution operations | ||
Segment information | ||
Revenue | 157,931 | 0 |
Income (loss) before income taxes | 2,914 | (119) |
Businesses under development | ||
Segment information | ||
Revenue | 326 | 0 |
Income (loss) before income taxes | $ (19,285) | $ (3,153) |
Segment reporting - Geographical information (Details) - CAD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
May 31, 2019 |
May 31, 2018 |
May 31, 2017 |
|
Geographic information | |||
Revenue | $ 237,110 | $ 36,917 | |
Capital assets | 503,898 | 303,151 | $ 72,455 |
North America | |||
Geographic information | |||
Revenue | 78,853 | 36,618 | |
Capital assets | 471,391 | 296,438 | |
Europe | |||
Geographic information | |||
Revenue | 154,163 | 299 | |
Capital assets | 25,817 | $ 6,713 | |
Latin America | |||
Geographic information | |||
Revenue | 4,094 | ||
Capital assets | 3,758 | ||
Africa | |||
Geographic information | |||
Capital assets | $ 2,932 |
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