Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

Subsequent Events
9 Months Ended
May 31, 2019
Subsequent Events [Abstract]  
Subsequent Events [Text Block]

Subsequent events after the reporting date not otherwise separately disclosed in these unaudited condensed consolidated financial statements are:

a. Common shares

On July 3, 2019, the Company cancelled 390,625 shares previously issued to an investor for gross proceeds of $250,000, due to the proceeds never being received.

On July 5, 2019, the Company issued 6,732,402 shares of common stock and warrants exercisable to purchase 4,601,980 shares of common stock at exercise prices ranging from $0.25 per share to $0.40 per share, for gross proceeds of $1,546,149. Included in this issuance was 210,526 shares of common stock issued to a company controlled by the Chairman of the Board.

b. Debt financing

On July 22, 2019, the Company issued to an arm’s length lender a $300,000 principal amount (including an original issue discount of 20%) unsecured convertible debenture, and warrants to purchase up to 1,315,789 common shares of the Company at $0.24 per share for 15 months. The debenture has a term of 15 months and bears interest at a rate of 7% per annum payable quarterly, and at the option of the holder the purchase amount of the debenture (excluding the original issue discount of 20%) is convertible into ‎1,315,789‎ common shares of the Company at $0.19 per share in accordance with the terms and conditions set out in the debenture.

c. Debt settlements

The Company entered into debt settlement agreements whereby debt of $93,500 was settled by the issue of 410,000 shares of common stock.

The Company entered into a shares for debt transaction, pursuant to which it will issue 838,714 common shares in satisfaction of $176,130 of indebtedness currently owed to an arm’s length service provider.