Annual report pursuant to Section 13 and 15(d)

Stock Options

Stock Options
12 Months Ended
Aug. 31, 2021
Share-based Payment Arrangement [Abstract]  


(a) Stock option plan

The Company has a stock option plan which allows the Board of Directors of the Company to grant options to acquire common shares of the Company to directors, officers, key employees and consultants. The option price, term and vesting are determined at the discretion of the Board of Directors, subject to certain restrictions as required by the policies of the TSX Venture Exchange. The stock option plan is a 20% fixed number plan with a maximum of 112,831,976 common shares reserved for issue at August 31, 2021.


On August 7, 2020, the Company issued a five-year option exercisable for 3,000,000 common shares, vesting over nine months, at an exercise price of CAD$0.085 per share to its newly appointed Chief Operating Officer.


On August 20, 2020, the Company issued a six-month option exercisable for 2,220,000 common shares, vesting immediately, at an exercise price of CAD$0.11 per share to a lender.


No stock options were granted for the year ended August 31, 2021.


During the year ended August 31, 2021 the share-based compensation expense of $603,244 (2020 - $887,818) relates to the vesting of options granted during the prior fiscal years.


(b) Stock options


Stock option transactions under the stock option plan were: 


    Year ended
August 31,  2021
  Year ended
August 31, 2020
    Number of Options   Weighted average
exercise price
  Number of options   Weighted average
exercise price
Balance, beginning of period     9,470,000     CAD$ 1.20       9,808,333     CAD$ 1.20  
Options granted    
      5,220,000     CAD$ 0.10  
Options forfeited     (2,220,000 )   CAD$ 1.14       (5,558,333 )   CAD$ 1.14  
Balance, end of period     7,250,000     CAD$ 0.63       9,470,000     CAD$ 0.63  


Stock options outstanding and exercisable as at August 31, 2021 are:


Expiry Date   Exercise Price   Options
August 7, 2025   CAD$ 0.085       3,000,000       3,000,000  
November 30, 2027   CAD$ 2.270       950,000       950,000  
June 5, 2028   CAD$ 1.000       3,300,000       3,300,000  
              7,250,000       7,250,000  
Weighted average remaining contractual life             5.5 years       5.5 years