Air Canada 2010 Annual Report Download - page 123

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Consolidated Financial Statements and Notes
123
Warrants
A summary of warrants outstanding as at December 31, 2010 is as follows:
Grant date Number of Warrants
Outstanding Exercise Prices Expiry Dates Remaining Life
(Years)
30-Jul-09 5,000,000 $ 1.51 30-Jul-13 2.6
19-Oct-09 5,000,000 $ 1.44 19-Oct-13 2.8
27-Oct-09 79,430,300 $ 2.20 27-Oct-12 1.8
89,430,300
During 2009, a total of 90,250,000 warrants were issued, of which 10,000,000 were issued in conjunction with the Credit
Facility as described in Note 6(e) and 80,250,000 were issued in conjunction with the Share and Warrant Public Offering as
described below. During 2010, a total of 819,700 warrants were exercised for cash consideration of $2.
Share and Warrant Public Offering
On October 27, 2009 Air Canada completed a bought deal public offering pursuant to which it sold to an underwriting
syndicate 160,500,000 units (the “Units”) of Air Canada at a price of $1.62 per Unit for aggregate gross proceeds to Air
Canada of $260 (net proceeds of $249 after expenses and underwriter fees).
Each Unit is comprised of one Class A variable voting share (the “Variable Voting Shares”) or one Class B voting share
(the “Voting Shares”, and, together with the Variable Voting Shares, the “Shares”) of Air Canada, and one half of one share
purchase warrant. Each whole share purchase warrant is defined as a “Warrant”. Each Warrant will entitle the holder thereof
to acquire one Variable Voting Share or one Voting Share (each, a “Warrant Share”) at an exercise price of $2.20 per Warrant
Share, at any time prior to 36 months following October 27, 2009. In the event that, prior to the time of expiry of the
Warrants, the 20-day volume weighted average trading price of the Variable Voting Shares on the Toronto Stock Exchange
(“TSX”) is equal to or greater than $4.00 or the 20-day volume weighted average trading price of the Voting Shares on the
TSX is equal to or greater than $4.00 (each, an “Acceleration Event”), Air Canada shall have the right, at its option, within 10
business days after the Acceleration Event, to accelerate the time of expiry of the Warrants.
The recorded values related to the Shares and Warrants were split based on their relative fair values. The value ascribed to
Share capital was $230 and the value ascribed to Contributed surplus related to the Warrants was $19.