| 12. Warrant Liabilities |
12. |
Warrant Liabilities |
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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 $1.00per full share. The unexercised warrants expired 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. Any unexercised warrants will 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 $1.35per full share. Any unexercised warrants will 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 is calculated, and adjusted monthly, using the Black-Scholes model 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.
Activity with respect to the warrant liabilities is presented in the following table.
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Sep-2018 |
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Aug-2020 |
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Feb-2021 |
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Warrant Liability Activity |
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Warrants |
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Warrants |
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Warrants |
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Total |
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December 31, 2018 |
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1,050 |
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- |
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- |
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1,050 |
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Warrants issued |
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- |
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- |
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- |
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- |
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Mark to market revaluation loss (gain) |
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|
(524 |
) |
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|
- |
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- |
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|
(524 |
) |
Effects for foreign exchange rate changes |
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49 |
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|
- |
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|
- |
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49 |
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December 31, 2019 |
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575 |
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- |
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- |
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575 |
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Warrants issued |
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- |
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|
860 |
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- |
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|
860 |
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Mark to market revaluation loss (gain) |
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161 |
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|
519 |
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- |
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|
680 |
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Effects for foreign exchange rate changes |
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|
(7 |
) |
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|
36 |
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- |
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29 |
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|
|
|
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December 31, 2020 |
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729 |
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1,415 |
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- |
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2,144 |
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Warrants issued |
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- |
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- |
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2,604 |
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2,604 |
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Warrants exercised |
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(3,961 |
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(388 |
) |
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(97 |
) |
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(4,446 |
) |
Mark to market revaluation loss (gain) |
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3,227 |
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1,020 |
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1,751 |
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5,998 |
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Effects for foreign exchange rate changes |
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5 |
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(20 |
) |
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(22 |
) |
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(37 |
) |
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December 31, 2021 |
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- |
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2,027 |
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4,236 |
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6,263 |
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Aug-2020 |
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Feb-2021 |
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Warrant Liability Duration |
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Warrants |
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Warrants |
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Total |
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Current portion of warrant liability |
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2,027 |
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- |
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2,027 |
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Warrant liability |
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- |
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4,236 |
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4,236 |
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December 31, 2021 |
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2,027 |
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4,236 |
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6,263 |
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The fair value of the warrant liabilities on December 31, 2021, was determined using the Black-Scholes model with the following assumptions: |
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Aug-2020 |
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Feb-2021 |
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Black-Scholes Assumptions at December 31, 2021 |
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Warrants |
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Warrants |
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| Expected forfeiture rate |
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0.0 |
% |
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0.0 |
% |
| Expected life (years) |
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0.6 |
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2.1 |
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| Expected volatility |
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74.0 |
% |
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80.1 |
% |
| Risk free rate |
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|
0.9 |
% |
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|
1.0 |
% |
| Expected dividend rate |
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0.0 |
% |
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|
0.0 |
% |
| Exercise price |
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$ |
0.75 |
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$ |
1.35 |
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| Market price |
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$ |
1.22 |
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$ |
1.22 |
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