Quarterly report pursuant to Section 13 or 15(d)

Warrant Liability

v3.21.2
Warrant Liability
6 Months Ended
Jun. 30, 2021
Warrant Liability  
12. Warrant Liability

12.

Warrant Liability

 

 

 

In September 2018, we issued 13,062,878 warrants as part of an underwritten public offering with two warrants redeemable for one Common Share of the Company’s stock at a price of $1.00 per full share. The warrants expire in September 2021.

 

In August 2020, we issued 9,000,000 warrants as part of a registered direct offering with two warrants redeemable for one Common Share of the Company’s stock at a price of $0.75 per full share. The warrants expire in August 2022.

 

In February 2021, we issued 16,930,530 warrants as part of an underwritten public offering with two warrants redeemable for one Common Share of the Company’s stock at a price of $1.35 per full share. The warrants expire in February 2024.

 

Because the warrants are priced in U.S. dollars and the functional currency of Ur-Energy Inc. is Canadian dollars, a derivative financial liability was created. The liability created, and adjusted quarterly, is calculated using the Black-Scholes technique described below as there is no active market for the warrants. Any gain or loss from the adjustment of the liability is reflected in net income for the period.

 

The Company’s warrant liabilities consist of the following:

 

 

 

Sep-2018

 

 

Aug-2020

 

 

Feb-2021

 

 

 

 

 Warrant Liability Activity

 

 Warrants

 

 

 Warrants

 

 

 Warrants

 

 

 Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2020

 

 

729

 

 

 

1,415

 

 

 

-

 

 

 

2,144

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrants issued

 

 

-

 

 

 

-

 

 

 

2,604

 

 

 

2,604

 

Warrants exercised

 

 

(419 )

 

 

(190 )

 

 

-

 

 

 

(609 )

Mark to market revaluation loss (gain)

 

 

1,792

 

 

 

1,670

 

 

 

2,862

 

 

 

6,324

 

Effects for foreign exchange rate changes

 

 

44

 

 

 

38

 

 

 

87

 

 

 

169

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2021

 

 

2,146

 

 

 

2,933

 

 

 

5,553

 

 

 

10,632

 

 

 

Sep-2018

 

 

Aug-2020

 

 

Feb-2021

 

 

 

Warrant Liability Duration

 

Warrants

 

 

Warrants

 

 

Warrants

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of warrant liability

 

 

2,146

 

 

 

-

 

 

 

-

 

 

 

2,146

 

Warrant liability

 

 

-

 

 

 

2,933

 

 

 

5,553

 

 

 

8,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2021

 

 

2,146

 

 

 

2,933

 

 

 

5,553

 

 

 

10,632

 

 

 

The fair value of the warrant liabilities on June 30, 2021 was determined using the Black-Scholes model with the following assumptions:

   

 

 

Sep-2018

 

 

Aug-2020

 

 

Feb-2021

 

Black-Scholes Assumptions at June 30, 2021

 

Warrants

 

 

Warrants

 

 

Warrants

 

 

 

 

 

 

 

 

 

 

 

Expected forfeiture rate

 

 

0.0 %

 

 

0.0 %

 

 

0.0 %

Expected life (years)

 

 

0.2

 

 

 

1.1

 

 

 

2.6

 

Expected volatility

 

 

72.3 %

 

 

78.1 %

 

 

75.6 %

Risk free rate

 

 

0.4 %

 

 

0.4 %

 

 

0.6 %

Expected dividend rate

 

 

0.0 %

 

 

0.0 %

 

 

0.0 %

Exercise price

 

$1.00

 

 

$0.75

 

 

$1.35

 

Market price

 

$1.41

 

 

$1.41

 

 

$1.41