Liquidity

As at October 31, 2020, we had $49 thousand of cash. We need to raise additional capital to fund research, development and corporate activities over the next year which include continued clinical development based on, among other factors, the achievement of BTD, or we may be forced to cease operations. As at October 31, 2020, we were committed to pay $6.3 million of trade and other payables and $1.1 million for research and development commitments over the next twelve months, and $0.6 million of lease liabilities over the next twelve months.

Subsequent to October 31, 2020, we raised $0.6 million. Our cash as at October 31, 2020, in combination with the $0.6 million raised subsequent to October 31, 2020, is not sufficient to fund our contractual commitments and/or our planned business operations over the next year.

We have entered into a definitive stock purchase agreement for a private placement of US$10 million of equity units. The private placement is subject to satisfaction of a foreign government’s investment review, due diligence conditions, customary closing 19 conditions for a transaction of this nature and receipt of all necessary regulatory and stock exchange approvals, and is anticipated to close on or before January 15, 2021. There can be no assurance that the private placement will be completed.

As a result of the conversion of the Debenture and related accrued interest into common shares during the period, we no longer have any secured debt.