Annual report pursuant to Section 13 and 15(d)

Warrant Liability

v3.22.1
Warrant Liability
12 Months Ended
Dec. 31, 2021
Warrant Liability  
Warrant Liability

Note 15 — Warrant Liability

 

For the year ended December 31, 2021, the Company issued warrants to purchase shares of the Company’s common stock related to multiple private placements. The warrants are as follows:

 

   

Warrant

Shares

   

Exercise

Price

 
Hudson Bay Warrant; January 25, 2021     15,000,000     $ 2.000  
Palladium Capital Warrant; January 25, 2021     480,000     $ 2.000  
BHP Capital Warrant; January 28, 2021     1,500,000     $ 2.200  
Hudson Bay Warrant; February 23, 2021     18,568,188     $ 3.720  
Palladium Capital Warrant; February 23, 2021     1,650,346     $ 3.720  
Hudson Bay Warrant; May 4, 2021     13,070,000     $ 3.200  
Palladium Capital Warrant; May 4, 2021     1,200,000     $ 3.200  
Hudson Bay Warrant; June 4, 2021     27,821,829     $ 3.300  
Palladium Capital Warrant; June 4, 2021     2,071,346     $ 3.300  
BHP Capital Warrant; June 9, 2021     1,500,000     $ 3.200  
Hudson Bay Warrant; July 22, 2021     32,697,548     $ 2.655  
Palladium Capital Group Warrant; July 22, 2021     2,615,804     $ 2.655  
BHP Capital Warrant; July 23, 2021     1,007,194     $ 2.780  
Hudson Bay Series A Warrant; August 19, 2021     20,500,000     $ 2.655  
Hudson Bay Series B Warrant; August 19, 2021*     2,000,000     $ 2.655  
Palladium Capital Group Series A Warrant; August 19, 2021     1,640,000     $ 3.200  
Palladium Capital Group Series B Warrant; August 19, 2021*     160,000     $ 2.655  
Hudson Bay Series A Warrant; September 1, 2021**     12,000,000     $ 9.000  
Armistice Capital Series A Warrant; September 1, 2021**     5,000,000     $ 9.000  
CVI Investments Series A Warrant; September 1, 2021**     3,000,000     $ 9.000  
Hudson Bay Series B Warrant; September 1, 2021*     2,000,000     $ 9.000  
Palladium Capital Group Series A Warrant; September 1, 2021     1,600,000     $ 9.000  
Palladium Capital Group Series B Warrant; September 1, 2021*     160,000     $ 9.000  
Hudson Bay Warrant; November 10, 2021     15,000,000     $ 4.527  
Palladium Capital Group Warrant; November 10, 2021     1,200,000     $ 4.527  
Hudson Bay Warrant; December 20, 2021     30,678,041     $ 3.265  
Palladium Capital Group Warrant; December 20, 2021     2,454,243     $ 3.265  

 

* The Series B Warrant has effective exercise price of $0.00 as alternative cashless feature allowing for issuance of shares of common stock at 1:1 ratio of warrant shares.

 

The warrants are subject to anti-dilution adjustments outlined in the Agreement. The warrants issued during the year ended December 31, 2021 were classified as a liability with an initial grant date fair value of $756,924,147, of which $110,420,000 was recorded as a deferred debt discount, $646,504,147 of excess fair value was immediately expensed as loss on issuance of warrants and $10,000,000 was recorded as additional loss on issuance of warrants for a fee paid for the waiver of certain registration rights agreement penalties. In addition, during the year ended December 31, 2021 the Company recorded $94,817,673 loss for the change in the fair value of warrants. As of December 31, 2021, the fair value of the warrant liability was $198,566,171.

 

 

The warrants remaining at December 31, 2021 were valued using the Monte-Carlo simulation pricing model to calculate the fair value of the warrants with the following assumptions:

 

   

Dividend

Yield

    Expected Volatility     Risk-free Interest Rate    

Expected

Life

 
Hudson Bay Warrant; June 4, 2021     0.00 %     115.00 %     1.25 %     2.5 years  
Palladium Capital Warrant; June 4, 2021     0.00 %     115.00 %     1.25 %     2.5 years  
Hudson Bay Warrant; July 22, 2021     0.00 %     115.00 %     1.24 %     2.5 years  
Hudson Bay Series A Warrant; September 1, 2021     0.00 %     115.00 %     1.22 %     2.5 years  
Palladium Capital Group Series A Warrant; September 1, 2021     0.00 %     115.00 %     1.22 %     2.5 years  
Hudson Bay Warrant; November 10, 2021     0.00 %     115.00 %     1.30 %     2.5 years  
Palladium Capital Warrant; November 10, 2021     0.00 %     115.00 %     1.30 %     2.5 years  
Hudson Bay Warrant; December 20, 2021     0.00 %     115.00 %     1.30 %     2.5 years  
Palladium Capital Warrant; December 20, 2021     0.00 %     115.00 %     1.30 %     2.5 years