Canada Nickel Company Inc.
Condensed Interim Consolidated Financial Statements For the Three Months Ended January 31, 2022 and 2021
(Expressed in Canadian Dollars, unless otherwise noted)
Canada Nickel Company Inc.
Condensed Interim Consolidated Statements of Financial Position
(Expressed in Canadian Dollars)
Unaudited
January 31 | October 31 | |||
Note | 2022 | 2021 | ||
ASSETS | $ | $ | ||
Current assets | 3,579,219 | 3,334,643 | ||
Cash and cash equivalents | ||||
Harmonized sales tax receivable | 1,514,115 | 3,300,595 | ||
Accounts receivable | 352,700 | 352,700 | ||
Prepaid expenses | 428,824 | 430,226 | ||
Total current assets | 5,874,858 | 7,418,164 | ||
Non-current assets | 77,844,467 | 47,304,907 | ||
Exploration and evaluation assets | 4 | |||
Equipment and right-of-use assets | 5 | 603,284 | 527,784 | |
Total assets | 84,322,609 | 55,250,855 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities | 6,235,024 | 6,992,243 | ||
Accounts payable and accrued liabilities | 12,13 | |||
Short-term loan facility | 6 | 12,453,471 | ||
Flow-through share premium | 7(a) | - | 959,399 | |
Total liabilities | 18,688,495 | 7,951,642 | ||
Shareholders' equity | 69,292,758 | 51,036,468 | ||
Share capital | 7 | |||
Share-based compensation and warrant reserves | 8,9,10 | 7,328,831 | 5,718,120 | |
Deficit | (10,987,475) | (9,455,375) | ||
Total shareholders' equity | 65,634,114 | 47,299,213 | ||
Total liabilities and shareholders' equity | 84,322,609 | 55,250,855 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
Nature of operations and going concern (Note 1)
Commitments and contingencies (Note 13)
Subsequent events (Note 15)
Signed on behalf of the Board: | |
"Mark Selby" | "David Smith" |
Mark Selby, Director | David Smith, Director |
2
Canada Nickel Company Inc.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Expressed in Canadian Dollars)
Unaudited
For the Three Months Ended January 31
Note | 2022 | 2021 | |
Expenses | $ | $ | |
254,845 | |||
Salaries and management fees | 12 | 141,560 | |
General and administrative costs | 242,497 | 223,859 | |
Professional fees | 111,915 | 107,650 | |
Consulting and advisory | 230,301 | 304,964 | |
Promotion and communication | 128,658 | 134,992 | |
Investor relations and marketing | 76,980 | 65,323 | |
Share-based compensation | 9,10 | 1,001,748 | 686,286 |
Travel and other | 4,901 | 5,410 | |
Transaction costs, interest and accretion expense | 6 | 439,654 | - |
2,491,499 | 1,670,044 | ||
Flow-through share premium | 7(a) | (959,399) | (282,027) |
Net loss and comprehensive loss | 1,532,100 | 1,388,017 | |
Loss per share - basic and diluted | 11 | $0.02 | $0.02 |
Weighted average number of shares outstanding | 91,160,063 | 80,097,896 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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Canada Nickel Company Inc.
Condensed Interim Consolidated Statements of Cash Flow
(Expressed in Canadian Dollars)
Unaudited
For the Three Months Ended January 31
Note | 2022 | 2021 | ||
Operating activities | $ | $ | ||
(1,532,100) | ||||
Net loss | (1,388,017) | |||
Add - transaction costs included in financing activities | 136,700 | - | ||
Adjustments for non-cash items: | 1,001,748 | |||
Share-based compensation | 686,286 | |||
Flow-through share premium | (959,399) | (282,027) | ||
Accretion on short-term loan facility | 6 | 189,455 | - | |
Changes in non-cash working capital items: | 1,786,480 | (373,712) | ||
Harmonized sales tax receivable | ||||
Prepaid expenses | 1,402 | (105,959) | ||
Accounts payable and accrued liabilities | 340,768 | 159,742 | ||
Net cash provided by (used in) operating activities | 965,054 | (1,303,687) | ||
Investing activities | (12,970,989) | |||
Exploration and evaluation expenditures | 4 | (2,281,479) | ||
Purchase of equipment | 5 | (51,574) | (35,161) | |
Net cash used in investing activities | (13,022,563) | (2,316,640) | ||
Financing activities | ||||
Proceeds from short-term loan facility, net of | 12,302,085 | |||
transaction costs | 6 | - | ||
Share issuance costs | - | (115,000) | ||
Proceeds from exercise of warrants | 8 | - | 72,833 | |
Net cash provided by (used in) financing activities | 12,302,085 | (42,167) | ||
Cash and cash equivalents, beginning of period | 3,334,643 | 11,167,265 | ||
Net change in cash and cash equivalents | 244,576 | (3,662,494) | ||
Cash and cash equivalents, end of period | 3,579,219 | 7,504,771 | ||
Supplementary disclosure | ||||
Value of shares issued for acquisitions | 4 | 16,971,090 | - | |
Value of shares issued for settlement of accounts | - | |||
payable | 7(b) | 391,750 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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Canada Nickel Company Inc.
Condensed Interim Consolidated Statement of Changes in Shareholders' Equity
(Expressed in Canadian Dollars)
Unaudited
Note | Number of | Share-based | Warrants | ||||
common | Share capital | compensation | Deficit | Total | |||
shares | reserve | reserve | |||||
# | $ | $ | $ | $ | $ | ||
Balance, October 31, 2020 | 8 | 79,939,316 | 30,729,738 | 1,165,057 | 2,574,426 | (3,077,272) | 31,391,949 |
Share issuance - warrants exercised | 152,094 | 182,566 | - | (69,019) | - | 113,547 | |
Fair value of share-based compensation | 9,10 | - | - | 686,286 | - | - | 686,286 |
Shares issued to settle 2020 accounts payable | 192,781 | - | - | - | - | - | |
Shares issued to settle 2021 accounts payable | 50,000 | 114,500 | - | - | - | 114,500 | |
Shares to be issued to settle accounts payable | - | 239,513 | - | (64,513) | - | 175,000 | |
Net loss for the three months ended January 31 | - | - | - | - | (1,388,017) | (1,388,017) | |
Balance, January 31, 2021 | 80,334,191 | 31,266,317 | 1,851,343 | 2,440,894 | (4,465,289) | 31,093,265 | |
Balance, October 31, 2021 | 88,383,650 | 51,036,468 | 5,551,009 | 167,111 | (9,455,375) | 47,299,213 | |
Share issuance - restricted share units exercised | 10 | 50,000 | 53,200 | (53,200) | - | - | - |
Share issuance - acquisitions | 4 | 5,164,000 | 16,971,090 | - | - | - | 16,971,090 |
Fair value of warrants issued | 6 | - | - | - | 283,140 | - | 283,140 |
Fair value of share-based compensation | 9,10 | - | - | 1,380,771 | - | - | 1,380,771 |
Shares to be issued to settle accounts payable | 7(b) | - | 1,232,000 | - | - | - | 1,232,000 |
Net loss for the three months ended January 31 | - | - | - | - | (1,532,100) | (1,532,100) | |
Balance, January 31, 2022 | 93,597,650 | 69,292,758 | 6,878,580 | 450,251 | (10,987,475) | 65,634,114 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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Canada Nickel Company Inc. published this content on 16 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 June 2022 12:12:03 UTC.