Quarterly report pursuant to Section 13 or 15(d)

Warrant Liability

v3.24.2.u1
Warrant Liability
6 Months Ended
Jun. 30, 2024
Warrant Liability  
Warrant Liability

10. Warrant Liability

 

In February 2021, the Company issued 16,930,530 warrants to purchase 8,465,265 common shares at $1.35 per whole common share for a term of three years.

 

In February 2023, the Company issued 39,100,000 warrants to purchase 19,550,000 common shares at $1.50 per whole common share for a term of three years.

 

Because the warrants are priced in U.S. dollars and the functional currency of Ur-Energy Inc., the parent entity, is Canadian dollars, a derivative financial liability was created. Using Level 2 inputs of the fair value hierarchy under US GAAP, the liability created is measured and recorded at fair value, 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.

The Company’s warrant liabilities consist of the following. The Company has no current warrant liability.

 

 Warrant Liability Activity

 

 Feb-2021

Warrants

 

 

 Feb-2023

Warrants

 

 

 Total

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

1,743

 

 

 

11,549

 

 

 

13,292

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrants exercised

 

 

(4,770 )

 

 

(21 )

 

 

(4,791 )

Mark to market revaluation loss (gain)

 

 

3,072

 

 

 

(4,546 )

 

 

(1,474 )

Effects for foreign exchange rate changes

 

 

(45 )

 

 

(418 )

 

 

(463 )

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2024

 

 

-

 

 

 

6,564

 

 

 

6,564

 

 

The fair value of the warrant liabilities on June 30, 2024, was determined using the Black-Scholes model with the following assumptions:

 

 

 

Feb-2023

 

Black-Scholes Assumptions as of June 30, 2024

 

Warrants

 

 

 

 

 

Expected forfeiture rate

 

 

0.0 %

Expected life (years)

 

 

1.6

 

Expected volatility rate

 

 

48.0 %

Risk free rate

 

 

4.0 %

Expected dividend rate

 

 

0.0 %

Exercise price

 

$ 1.50

 

Market price

 

$ 1.40