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iso4217:CAD
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<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="3">5. ACCOUNTS RECEIVABLE</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company’s accounts receivable included the following balances as of August 31, 2019 and August 31, 2018:</p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="11%"><font color="#ffffff">AUGUST 31, 2019</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="2%"><font color="#ffffff"> </font></td>
<td align="center" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="11%"><font color="#ffffff">AUGUST 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="2%"><font color="#ffffff"> </font></td>
</tr>
<tr valign="top">
<td align="left">Trade receivables</td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="11%"> 11,900</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="11%">817</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Harmonized sales taxes receivable</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">4,741</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">2,526</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Accrued investment income</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">-</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">241</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Government programs</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">168</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">80</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Other accounts receivable</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">-</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">96</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Less: Provision for doubtful accounts</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%">(268</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%">(24</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"> 16,541</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%">3,736</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Included in other accounts receivable is a $nil (August 31, 2018 - $75) promissory note bearing interest at 3% and redeemable on demand.</p>
2526000
4741000
80000
168000
2400048000
268000268000
817000
11900000
241000
96000
<div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="3">1. NATURE OF OPERATIONS</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Organigram Holdings Inc. (the “Company”) is a publicly traded corporation on the Toronto Stock Exchange (“TSX”) with its common shares trading under the symbol “OGI” and on the Nasdaq Global Select Market under the symbol “OGI”. The address of the registered office of OHI is 35 English Drive, Moncton, New Brunswick, Canada, E1E 3X3.</p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company’s major subsidiaries are Organigram Inc., a Licensed Producer (“LP”) of cannabis and cannabis derived products in Canada regulated by Health Canada under the Cannabis Act and the Cannabis Regulations of Canada, and 10870277 Canada Inc., a holding company for Organigram Holdings Inc.</p>
<div align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Organigram Inc. was incorporated, under the laws of the Province of New Brunswick, Canada, on March 1, 2013. 10870277 Canada Inc. and Organigram Holdings Inc. are federal companies under the Canada Business Corporations Act.</div>
</div>
<div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="3">2. BASIS OF PREPARATION</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc">i) Statement of compliance</font><br />The consolidated financial statements have been prepared in compliance with the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations of the IFRS Interpretations Committee (“IFRIC”).</p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">These consolidated financial statements were approved and authorized for issue by the Board of Directors of the Company on November 23, 2019.</p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc">ii) Basis of measurement</font><br />These consolidated financial statements have been prepared on a historical cost basis except for biological assets, short-term investments, share-based compensation, and contingent share consideration, which are measured at fair value.</p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Historical cost is the fair value of the consideration given in exchange for goods and services, which is generally based upon the fair value at the time of the transaction of the consideration given in exchange for assets.</p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc">iii) Basis of consolidation</font><br />These consolidated financial statements include the accounts of the Company and its subsidiaries on a consolidated basis after elimination of intercompany transactions and balances. Subsidiaries are entities the Company controls when it is exposed, or has rights, to variable returns from its involvement and has the ability to affect those returns through its power to direct the relevant activities of the entity.</p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc">iv) Foreign currency translation<br /></font>Functional and presentation currency<br />These consolidated financial statements are presented in Canadian dollars, which is the Company’s and its subsidiaries’ functional currency, except for the Company’s investment in associate in alpha-cannabis Pharma GmbH, for which the functional currency has been determined to be Euros.</p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Transactions and balances<br />Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in currencies other than an operation’s functional currency are recognized in the consolidated statements of (loss) income and comprehensive (loss) income.</p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">Foreign operations<br />The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to Canadian Dollars at exchange rates at the reporting date. The income and expenses of foreign operations are translated to Canadian Dollars using average exchange rates for the month during which the transactions occurred. Foreign currency differences are recognized in other comprehensive income (loss) in the accumulated other comprehensive loss account.</p>
<div align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000;
font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">When the Company disposes of its entire interest in a foreign operation, or loses control over a foreign operation, the foreign currency gains or losses accumulated in other comprehensive income (loss) related to the foreign operation are recognized in profit or loss. If the Company disposes of part of an interest in a foreign operation that remains a subsidiary, a proportionate amount of foreign currency gains or losses accumulated in other comprehensive income (loss) related to the subsidiary is reallocated between controlling and non-controlling interests.</div>
</div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="4">3. SIGNIFICANT ACCOUNTING POLICIES</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">i) Cash and cash equivalents</font><br /><font size="2">Cash and cash equivalents are financial assets that are measured at amortized cost, which approximate fair value and include cash-on-hand and deposits held with financing institutions.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">ii) Short term investments</font><br /><font size="2">The Company considers short-term investments in the form of guaranteed investment certificates to be an investing activity. These investments are measured at amortized cost. The company also has equity securities that are carried at fair value through profit or loss.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">iii) Biological assets</font><br /><font size="2">While the Company’s biological assets are within the scope of IAS 41 Agriculture, the direct and indirect costs of biological assets are determined using an approach similar to the capitalization criteria outlined in IAS 2 Inventories. They include the direct cost of seeds and growing materials as well as other indirect costs such as utilities and supplies used in the growing process. Indirect labour cost for individuals involved in the growing and quality control process is also included, as well as depreciation of manufacturing assets. All direct and indirect costs of biological assets are capitalized as they are incurred. Unrealized fair value gains/losses on growth of biological assets are recorded on the consolidated statements of (loss) income and comprehensive (loss) income. Biological assets are measured at their fair value less costs to sell on the consolidated statement of financial position.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">iv) Inventories</font><br /><font size="2">Inventories for finished goods and packaging and supplies are initially valued at cost, and subsequently at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs to sell. The Company reviews inventories for obsolete, redundant and slow-moving goods and any such inventories identified are written down to net realizable value. The direct and indirect costs of finished goods inventory initially include the fair value of the biological asset at the time of harvest. They also include subsequent costs such as materials, labour and depreciation expense on equipment involved in packaging, labeling and inspection. All direct and indirect costs related to inventory are capitalized as they are incurred, and they are subsequently recorded within cost of sales on the consolidated statements of (loss) income and comprehensive (loss) income at the time cannabis is sold. Inventory is measured at lower of cost or net realizable value on the statement of financial position.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">v) Property, plant and equipment</font><br /><font size="2">Property, plant and equipment are initially recognized at acquisition cost or manufacturing cost, including any costs directly attributable to bringing the assets to the location and condition necessary for them to be capable of operating in the manner intended by the Company’s management. Property, plant and equipment are subsequently measured at cost less accumulated depreciation and impairment losses.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Depreciation is recognized on a straight-line basis to write down the cost less estimated residual value of buildings, computer equipment and growing equipment. The following useful lives are applied:</font></p>
<div align="center" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">
<table style="width: 50%; border-collapse: collapse; font-size: 10pt; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top" bgcolor="#eeeeee">
<td align="left"><font size="2">Building</font></td>
<td align="right" width="50%"><font size="2">25 years</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Growing equipment</font></td>
<td align="right" width="50%"><font size="2">10 years</font></td>
</tr>
<tr valign="top" bgcolor="#eeeeee">
<td align="left"><font size="2">Computer equipment</font></td>
<td align="right" width="50%"><font size="2">5 years</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Vehicles</font></td>
<td align="right" width="50%"><font size="2">5 years</font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Furniture and fixtures</font></td>
<td align="right" bgcolor="#eeeeee" width="50%"><font size="2">10 years</font></td>
</tr>
</table>
</div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Gains or losses arising on the disposal of property, plant and equipment are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognized in profit or loss within other income or other expenses.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Assets in process are transferred to the appropriate asset class when available for use and depreciation of the assets commences at that point.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">An asset’s residual value, useful life and depreciation method are reviewed during each financial year and adjusted if appropriate. When parts of an item of equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">vi) Goodwill</font><br /><font size="2">Goodwill represents the future economic benefits arising from a business combination that are not individually identified and separately recognized. Goodwill is carried at cost less accumulated impairment losses. Refer to Note 4(viii) for a description of impairment testing procedures.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">vii) Assets held for sale</font><br /><font size="2">Assets and liabilities held for sale are no longer depreciated and are presented separately in the statement of financial position at the lower of their carrying amount and fair value less costs to sell. An asset is regarded as held for sale if its carrying amount will be recovered principally through a sale transaction, rather than through continuing use. For this to be the case, the asset must be available for immediate sale and its sale must be highly probable.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">viii) Impairment of long-lived assets</font><br /><font size="2">Long-lived assets, including property, plant and equipment are reviewed each reporting period for indicators of impairment. Goodwill is assessed for indicators of impairment at each reporting date and is tested annually or whenever events or changes in circumstances indicate that the carrying amount of an asset exceeds its recoverable amount. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the cash-generating unit, or "CGU"). The recoverable amount of an asset or a CGU is the higher of its fair value, less costs of disposal, and its value in use. If the carrying amount of an asset exceeds its recoverable amount, an impairment charge is recognized immediately in profit or loss equal to the amount by which the carrying amount exceeds the recoverable amount. Except for goodwill, where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the lesser of the revised estimate of recoverable amount, and the carrying amount that would have been recorded had no impairment loss been recognized previously.</font> </p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">ix) Share-based payments</font><br /><font size="2">The Company measures equity settled share-based payments based on their fair value at the grant date and recognizes compensation expense in profit or loss over the vesting period based on the Company’s estimate of equity instruments that will eventually vest. Fair value for options is determined using the Black-Scholes pricing model and fair value for Restricted Share Units (RSUs) and Performance Share Units (PSUs) is determined using the Company’s share price at the grant date.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Expected forfeitures are estimated at the date of the grant and subsequently adjusted if further information indicates actual forfeitures may vary from the original estimate. The impact of the revision of the original estimate is recognized in profit or loss such that the cumulative expenses reflects the revised estimate.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">For stock options granted to non-employees, the expense is measured at the fair value of the goods and services received except when the fair value cannot be estimated in which case it is measured at the fair value of the equity instrument granted.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Consideration paid by employees or non-employees on the exercise of options is recorded as share capital and the related share-based expense is transferred from share-based reserve to share capital.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">x) Investments in associates</font><br /><font size="2">Associates are companies over which OHI has significant influence over and are accounted for under the equity method. Significant influence is presumed when the Company has an ownership interest greater than 20%, unless certain qualitative factors overcome this assumption. Conversely, where the Company has an ownership interest less than 20%, it is presumed that the Company does not have significant influence, unless certain qualitative factors overcome this assumption. In assessing significant influence and the ownership interest, potential voting rights that are currently exercisable are taken into consideration.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Investments in associates are accounted for using the equity method and are initially recognized at cost, inclusive of transaction costs. The consolidated financial statements include the Company’s share of the income or loss and equity movement of equity accounted associates. In accordance with IFRS, the associate’s most recent available financial statements are used in the application of the equity method. Where the associate’s reporting period differs from the Company’s, the associate prepares financial information as of the same period end as the Company, unless it is impracticable to do so. Otherwise, the Company will adjust for its share of income and expenses and equity movement based on the associate’s most recently completed financial statements, adjusted for the effects of significant transactions. The Company does not recognize losses exceeding the carrying value of its interest in the associate.</font> </p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">xi) Intangible asset</font><br /><font size="2">Intangible assets are recorded at cost less accumulated amortization and impairment losses, if any. Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Amortization of definite life intangibles is provided on a straight-line basis over their estimated useful lives, which do not exceed the contractual period, if any, except for off-market supply agreements, where amortization is provided based on the actual output received versus the estimated output forecast to be received over the life of the agreement.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The estimated useful lives, residual values, and amortization methods are reviewed at each year end, and any changes in estimates are accounted for prospectively. Intangible assets with an indefinite life or not yet available for use are not subject to amortization.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Research costs are expensed as incurred. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development to use or sell the asset. Other development expenditures are recognized as general and administrative expenses on the consolidated statement of income (loss) and comprehensive income (loss) as incurred.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">xii) Earnings (loss) per share</font><br /><font size="2">Basic earnings (loss) per share is calculated by dividing net income (loss) attributable to common shareholders by the weighted-average number of shares outstanding during the period. Diluted earnings (loss) per share is calculated in a similar manner, but with adjustments to give effect to all dilutive potential common shares outstanding during the period. The dilutive effect of warrants, options, RSUs and PSUs is calculated using the treasury stock method. The if-converted method which assumes that all convertible debt has been converted if the debt is in-the-money is used to calculate the dilutive effect of convertible debt. Anti-dilutive effects of potential conversions of securities are ignored for this calculation.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">xiii) Revenue recognition</font><br /><font size="2">Revenue from the direct sale of cannabis and cannabis oil for a fixed price is recognized when the Company transfers control of the good to the customer, which is at point of delivery for medical cannabis and recreational cannabis.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Revenue includes excise taxes, which the Company pays as principal, but excludes duties and taxes collected on behalf of third parties. Revenue also includes the net consideration to which the Company expects to be entitled. Revenue is recognized to the extent that it is highly probable that a significant reversal will not occur. Therefore, revenue is stated net of expected price discounts, allowances for customer returns and certain promotional activities and similar items. Generally, payment of the transaction price is due within credit terms that are consistent with industry practices, with no element of financing.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Net revenue is revenue less excise taxes. Excise taxes are effectively a production tax which becomes payable when the product is removed from the Company’s premises and may or may not be directly related to the value of revenue depending on the province of sale. It is generally not included as a separate item on external invoices; increases in excise tax are not always passed on to the customer and where a customer fails to pay for product received the Company cannot reclaim the excise tax. The Company therefore recognizes excise tax, unless it regards itself as an agent of the regulatory authorities, as a cost to the Company.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">xiv) Income taxes</font><br /><font size="2">The measurement of income taxes payable and deferred income tax assets and liabilities requires management to make judgments in the interpretation and application of the relevant tax laws. The actual amount of income taxes only becomes final upon filing and acceptance of the tax return by the relevant authorities, which occurs subsequent to the issuance of the consolidated financial statements.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Income tax expense (recovery) in profit or loss is the sum of current and deferred tax as explained below.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Current tax is the expected income tax payable (recoverable) on the taxable income (loss) for the period, using tax rates enacted, or substantively enacted, as at the end of the reporting period. Current tax expense (recovery) included in profit or loss reflects the current tax for the reporting period, plus adjustments to the current tax of prior periods, less current tax recorded directly in other comprehensive income (loss) or equity.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Deferred taxes are accounted for under the liability method and are the taxes expected to be payable or recoverable on the temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable income. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable income will be available against which deductible temporary differences and unused tax losses and tax credits can be utilized. Deferred tax is calculated on a non-discounted basis, using enacted or substantively enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The carrying amounts of individual deferred tax assets are reviewed at the end of each reporting period but are only recognized for the proportion probable that sufficient taxable profits will be available for such assets to be recovered.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Deferred tax is not recognized for temporary differences related to the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; differences relating to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future; and, differences arising on the initial recognition of goodwill.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">xv) Borrowing costs</font><br /><font size="2">Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Other borrowing costs are expensed in the period in which they are incurred and reported in finance costs. No borrowing costs were capitalized during the periods presented.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">xvi) Discontinued operations</font><br /><font size="2">A disposal group is presented as a discontinued operation if all of the following conditions are met: i) it is a component of the Company for which operations and cash flows can be clearly distinguished operationally and financially from the rest of the Company, ii) it represents a separate major line of business of operations that either has been disposed of or is classified as held for sale; or it is part of a single coordinated plan to dispose of a separate major line of business of operations.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Assets in a disposal group classified as held for sale are presented separately in the consolidated statements of financial position. Discontinued operations are presented separately from continuing operations in the consolidated statements of (loss) income and comprehensive (loss) income and consolidated statements of cash flows.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">xvii) Critical accounting estimates and judgments</font><br /><font size="2">The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimates are revised and in any future years affected.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The following are the estimates and judgments made by management in applying the accounting policies of the Company that have the most significant effect on the financial statements.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 68px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b><i>1) Biological assets and inventory<br /></i></b>Determination of the fair value of biological assets requires the Company to make a number of estimates, including estimating harvesting costs, selling costs, sales prices, wastage, oil conversion factor, expected yields, and post-harvest costs of the cannabis plant. In determining final inventory values, the Company estimates spoiled or expired inventory in determining net realizable value. Refer to Notes 8 and 9 for further information.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 68px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b><i>(2) Estimated useful lives of property, plant and equipment<br /></i></b>Amortization of property, plant and equipment requires estimates of useful lives, which are determined through the exercise of judgment. The assessment of any impairment of these assets is dependent upon estimates of recoverable amounts that consider factors such as economic and market conditions and the useful lives of assets.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 68px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b><i>(3) Share-based payments<br /></i></b>In determining the fair value of options and related expense, the Company makes such estimates as the expected life of the option, the volatility of the Company’s share price, the risk-free interest rate, and the rate of forfeitures. Refer to Note 13 for further information.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 68px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b><i>(4) Warrants<br /></i></b>In determining the value of warrants, the Company estimates the expected life of the warrant, the volatility of the Company’s share price and the risk-free interest rate.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 68px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b><i>(5) Compound Financial Instruments</i></b></font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 68px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">In calculating the fair value allocation between the liability component and the equity component of the Company’s unsecured convertible debentures (compound instruments), the Company was required to make estimates and use judgment in determining an appropriate discount rate on the debentures to arrive at a fair value. The identification of convertible debentures’ components is based on interpretation of the substance of the contractual arrangement and therefore requires judgment from management. The separation of the components affects the initial recognition of interest on the liability component. The determination of fair value of the liability is also based on a number of assumptions, including contractual future cash flows, discount rates and the presence of any derivative financial instruments. Refer to Note 11 for further information.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 68px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b><i>(6) Goodwill<br /></i></b>Goodwill impairment testing requires management to make estimates in the impairment testing model. On an annual basis, the Company tests whether goodwill is impaired, based on an estimate of its recoverable amount.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 68px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b><i>(7) Assets held for sale<br /></i></b>Assets held for disposal and disposal groups are measured at the lower of their carrying amount and their fair value less costs to sell. The determination of the fair value less costs to sell includes the use of management estimates and assumptions that tend to be uncertain.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 68px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b><i>(8) Adult-use recreational cannabis revenue – provision for returns and price adjustments<br /></i></b>Government customers typically have a right of product return, and in some cases, the right to pricing adjustments for products that are subsequently discounted or sold for a lower price in another jurisdiction. The estimation of potential future returns and pricing adjustments includes the use of management estimates and assumptions that may not be certain given the evolving nature of the industry.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 68px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b><i>(9) Investments in associates<br /></i></b>Management has applied significant judgment in the determination of whether the Company exerts significant influence with respect to its investments, which then allow the Company to account for its investments under the equity accounting method. Further, management has applied significant judgment and made use of management estimates and assumptions in determination and quantification of any impairment losses that may need to be recorded against its investments in associates.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">NEW STANDARDS AND INTERPRETATIONS ADOPTED</font><br /><font color="#8cbddc" size="2">New or amended standards effective September 1, 2018</font><br /><font size="2">The Company has adopted the following new or amended IFRS standards for the annual period beginning on September 1, 2018.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">i) IFRS 2 – Share-based Payments</font><br /><font size="2">The amendment clarifies how to account for the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments, share-based payment transactions with a net settlement feature and a modification to the terms and conditions that changes the classification of the transactions. The amendment is effective for annual periods beginning on or after January 1, 2018. This was effective for the Company beginning September 1, 2018.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The adoption of the new standard did not have a material impact on its consolidated financial statements.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">ii) IFRS 9 – Financial Instruments</font><br /><font size="2">A finalized version of IFRS 9, which contains accounting requirements for financial instruments, replacing IAS 39 Financial Instruments: Recognition and Measurement. The standard contains requirements in the following areas: classification and measurement, impairment, hedge accounting and de-recognition.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Classification and measurement</font><br /><font size="2">Under IFRS 9, financial assets are initially measured at fair value plus, in the case of a financial asset not at fair value through profit and loss (“FVTPL”), transaction costs.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Financial assets are subsequently measured at:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr>
<td align="center" valign="top" width="5%"><font color="#8cbddc" size="2">i)</font></td>
<td>
<p align="justify"><font size="2">FVTPL;</font></p>
</td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font color="#8cbddc" size="2">ii)</font></td>
<td>
<p align="justify"><font size="2">amortized cost;</font></p>
</td>
</tr>
<tr>
<td align="center" width="5%"><font color="#8cbddc" size="2"> </font></td>
<td><font size="2"> </font></td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font color="#8cbddc" size="2">iii)</font></td>
<td>
<p align="justify"><font size="2">debt measured at fair value through other comprehensive income (“FVOCI”);</font></p>
</td>
</tr>
<tr>
<td align="center" width="5%"><font color="#8cbddc" size="2"> </font></td>
<td><font size="2"> </font></td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font color="#8cbddc" size="2">iv)</font></td>
<td>
<p align="justify"><font size="2">equity investments designated at FVOCI; or</font></p>
</td>
</tr>
<tr>
<td align="center" width="5%"><font color="#8cbddc" size="2"> </font></td>
<td><font size="2"> </font></td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font color="#8cbddc" size="2">v)</font></td>
<td>
<p align="justify"><font size="2">financial instruments designated at FVTPL.</font></p>
</td>
</tr>
</table>
<p align="left" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The classification is based on whether the contractual cash flow characteristics represent “solely payment of principal and interest” (the “SPPI test”) as well as the business model under which the financial assets are managed. Financial assets are required to be reclassified only when the business model under which they are managed has changed. All reclassifications are to be applied prospectively from the reclassification date.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Debt investments are recorded at amortized cost for financial assets that are held within a business model with the objective to hold the financial assets in order to collect contractual cash flows that meet the SPPI test.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The assessment of the Company’s business models for managing the financial assets was made as of the date of initial application of September 1, 2018. The assessment of whether contractual cash flows on debt instruments meet the SPPI test was made based on the facts and circumstances as at the initial recognition of the financial assets.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Consistent with IAS 39, all financial liabilities held by the Company under IFRS 9 are initially measured at fair value and subsequently measured at amortized cost.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The following table summarizes the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of the Company’s financial assets and financial liabilities:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="25%"><font size="2">IAS 39 CLASSIFICATION</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="25%"><font size="2">IFRS 9 CLASSIFICATION</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="25%"><font size="2"> </font></td>
<td align="right" width="25%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Cash and cash equivalents</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">Loans and receivables</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">Amortized cost</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="25%"><font size="2"> </font></td>
<td align="right" width="25%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Short-term investments excluding marketable securities</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">Held to maturity</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">Amortized cost</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="25%"><font size="2"> </font></td>
<td align="right" width="25%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Accounts receivable</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">Loans and receivables</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">Amortized cost</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="25%"><font size="2"> </font></td>
<td align="right" width="25%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Loan receivable</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">N/A</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">Amortized cost</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="25%"><font size="2"> </font></td>
<td align="right" width="25%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Marketable securities</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">N/A</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">FVTPL</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="25%"><font size="2"> </font></td>
<td align="right" width="25%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Accounts payable and accrued liabilities</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">Other liabilities</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">Amortized cost</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="25%"><font size="2"> </font></td>
<td align="right" width="25%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Long-term debt</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">Other liabilities</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">Amortized cost</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="25%"><font size="2"> </font></td>
<td align="right" width="25%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Unsecured convertible debentures</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">Other liabilities</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">Amortized cost</font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The adoption of IFRS 9 did not have an impact on the Company’s measurement of financial assets and liabilities.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Impairment</font><br /><font size="2">Under IFRS 9, the Company is required to apply an expected credit loss (“ECL”) model to all debt financial assets not held at FVTPL, where credit losses that are expected to transpire in future years are provided for, irrespective of whether a loss event has occurred or not as at the balance sheet date. For trade receivables, the Company has applied the simplified approach under IFRS 9 and has calculated ECLs based on lifetime expected credit losses taking into consideration historical credit loss experience and financial factors specific to the debtors and general economic conditions. The Company has assessed the impairment of its amounts receivable using the ECL model, and no difference was noted. As a result, no impairment loss has been recognized upon transition and at September 1, 2018.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">iii) IFRS 15 – Revenue from Contracts with Customers</font><br /><font size="2">In May 2014, the IASB issued IFRS 15 – Revenue from Contracts with Customer (“IFRS 15”), which provides a comprehensive framework for recognition, measurement and disclosure of revenue from contracts with customers, excluding contracts within the scope of the standards on leases, insurance contracts and financial instruments.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The Company has applied IFRS 15 retrospectively but determined that there is no change to the comparative periods or transitional adjustments required as a result of the adoption of this standard. The pattern and timing of revenue recognition under the new standard is consistent with prior year practice. The Company’s accounting policy for revenue recognition under IFRS 15 is as follows:</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">To determine the amount and timing of revenue to be recognized, the Company follows a 5-step process:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr>
<td align="center" valign="top" width="5%"><font color="#8cbddc" size="2">1.</font></td>
<td>
<p align="justify"><font size="2">Identifying the contract with a customer</font></p>
</td>
</tr>
<tr>
<td align="center" width="5%"><font color="#8cbddc" size="2"> </font></td>
<td><font size="2"> </font></td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font color="#8cbddc" size="2">2.</font></td>
<td>
<p align="justify"><font size="2">Identifying the performance obligations</font></p>
</td>
</tr>
<tr>
<td align="center" width="5%"><font color="#8cbddc" size="2"> </font></td>
<td><font size="2"> </font></td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font color="#8cbddc" size="2">3.</font></td>
<td>
<p align="justify"><font size="2">Determining the transaction price</font></p>
</td>
</tr>
<tr>
<td align="center" width="5%"><font color="#8cbddc" size="2"> </font></td>
<td><font size="2"> </font></td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font color="#8cbddc" size="2">4.</font></td>
<td>
<p align="justify"><font size="2">Allocating the transaction price to the performance obligations</font></p>
</td>
</tr>
<tr>
<td align="center" width="5%"><font color="#8cbddc" size="2"> </font></td>
<td><font size="2"> </font></td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font color="#8cbddc" size="2">5.</font></td>
<td>
<p align="justify"><font size="2">Recognizing revenue when/as performance obligation(s) are satisfied</font></p>
</td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Revenue from the direct sale of cannabis and cannabis oil for a fixed price is recognized when the Company transfers control of the good to the customer, which is at point of delivery for medical cannabis and recreational cannabis.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Revenue includes excise taxes, which the Company pays as principal, but excludes duties and taxes collected on behalf of third parties. Revenue also includes the net consideration to which the Company expects to be entitled. Revenue is recognized to the extent that it is highly probable that a significant reversal will not occur. Therefore, revenue is stated net of expected price discounts, allowances for customer returns and certain promotional activities and similar items. Generally, payment of the transaction price is due within credit terms that are consistent with industry practices, with no element of financing.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Net revenue is revenue less excise taxes. Excise taxes are effectively a production tax which becomes payable when the product is removed from the Company’s premises and may or may not be directly related to the value of revenue depending on the province of sale. It is generally not included as a separate item on external invoices; increases in excise tax are not always passed on to the customer and where a customer fails to pay for product received the Company cannot reclaim the excise tax. The Company therefore recognizes excise tax, unless it regards itself as an agent of the regulatory authorities, as a cost to the Company.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">New or amended standards issued but not yet effective</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">IFRS 16 – Leases</font><br /><font size="2">In January 2016, the IASB issued IFRS 16 – Leases (“IFRS 16”), which establishes principles for the recognition, measurement, presentation and disclosure of leases, with the objective of ensuring that lessees and lessors provide relevant information that faithfully represents those transactions. IFRS 16, which replaces IAS 17 Leases, brings most leases onto the statement of financial position for lessees eliminating the distinction between operating and finance leases. IFRS 16 introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than twelve months, unless the underlying asset is of low value. A lessee is required to recognize a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. The right-of-use asset is treated similarly to other non-financial assets and depreciated accordingly, and the liability accrues interest. The lease liability is initially measured at the present value of the lease payments payable over the lease term, discounted at the rate implicit in the lease or an entity's incremental borrowing rate if the implicit rate cannot be readily determined.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">A lessee shall apply IFRS 16 to its leases either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying IFRS 16 being recognized at the date of initial application. Lessees are permitted to make an election for leases with a term of 12 months or less, or where the underlying asset is of low value and not recognize lease assets and lease liabilities. The expense associated with these leases can be recognized on a straight-line basis over the lease term or on another systematic basis.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">IFRS 16 applies to annual reporting periods beginning on or after January 1, 2019. This will be effective for the Company beginning September 1, 2019. The Company reviewed its current and past leases. Reclassification of leases for office space, manufacturing equipment, and certain computer hardware will result in the establishment of additional right-of-use assets and lease liabilities on the statement of financial position, as well as changes in the timing and presentation of lease-related expenses on the statement of income. The Company is finalizing its evaluation of the effect of this standard on the consolidated financial statements but expects there will be no material impact.</font></p>
Straight-line
Straight-line
Straight-line
25 years
10 years
5 years
5 years
10 years
<div align="center" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">
<table style="width: 50%; border-collapse: collapse; font-size: 10pt; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top" bgcolor="#eeeeee">
<td align="left">Building</td>
<td align="right" width="50%">25 years</td>
</tr>
<tr valign="top">
<td align="left">Growing equipment</td>
<td align="right" width="50%">10 years</td>
</tr>
<tr valign="top" bgcolor="#eeeeee">
<td align="left">Computer equipment</td>
<td align="right" width="50%">5 years</td>
</tr>
<tr valign="top">
<td align="left">Vehicles</td>
<td align="right" width="50%">5 years</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Furniture and fixtures</td>
<td align="right" bgcolor="#eeeeee" width="50%">10 years</td>
</tr>
</table>
</div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" color="#8cbddc" size="4">14. INVESTMENTS IN ASSOCIATES</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The carrying value of investments in associates consist of:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2">ALPHA-CANNABIS</font></td>
<td align="left" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2">EVIANA HEALTH</font></td>
<td align="left" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2">HYASYNTH</font></td>
<td align="left" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="12%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2">PHARMA GMBH</font></td>
<td align="left" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2">CORPORATION</font></td>
<td align="left" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2">BIOLOGICALS INC.</font></td>
<td align="left" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="12%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="12%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2">(A)</font></td>
<td align="left" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="12%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2">(B)</font></td>
<td align="left" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="12%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2">(C)</font></td>
<td align="left" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="12%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2">TOTAL</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">Participating share <sup>(1)</sup></font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">25.0%</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">19.9%</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">43.4%</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Balance, September 1, 2018</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2"> -</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2"> -</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2"> -</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2"> -</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">   Additions</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">3,408</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">5,000</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">5,000</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">13,408</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Transaction costs</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2">160</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2">73</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2">89</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2">322</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">   Distributions</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">(374</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">(374</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Share of net income (loss)</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2">(50</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2">(734</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2">(477</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2">(1,261</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">   Impairment loss</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">(950</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">(950</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Foreign currency translation gain (loss)</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="12%"><font style="font-family: times new roman,times;" size="2">(22</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="12%"><font style="font-family: times new roman,times;" size="2">(15</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="12%"><font style="font-family: times new roman,times;" size="2">(37</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">Balance, August 31, 2019 <sup>(2)</sup></font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2"> 3,496</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2"> 3,000</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2"> 4,612</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2"> 11,108</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Note 1: % Interest includes the potential ownership interest that could result from the conversion of debentures and exercise of warrants</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Note 2: OHI utilizes the most recently issued quarterly financial statements of its associates in its results with a two months lag since the Company does not have the same reporting date as its associates (for example, for the period ended August 31, OHI utilizes its associates’ June 30 results)</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The following table presents current and non-current assets, current and non-current liabilities as well as revenues and net loss of the Company’s material investments in equity method investees for the year ended June 30, 2019, the most recently issued quarterly financial statements:</font></p>
<div> </div>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" width="12%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2">EVIANA HEALTH</font></td>
<td align="center" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" width="1%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" width="12%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2">HYASYNTH</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="12%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2">CORPORATION</font></td>
<td align="center" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="1%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="12%" nowrap="nowrap"><font style="font-family: times new roman,times;" size="2">BIOLOGICALS INC.</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Statement of financial position</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">Current assets</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2"> 10,024</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2"> 3,223</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Non-current assets</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2">3,173</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2">484</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Current liabilities</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2">1,329</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2">62</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">Non-current liabilities (Note 1)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">8,290</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">5,175</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">Statement of comprehensive loss (Note 2)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Revenue</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">Net income (loss) to shareholders</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">(1,626</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2">(1,098</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Other comprehensive income (loss) to shareholders</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2">(319</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">Comprehensive income (loss) to shareholders</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2"> (1,945</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font style="font-family: times new roman,times;" size="2"> (1,098</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Note 1: Non-current liabilities include OHI’s convertible debenture investment at its carrying value of $5,000 and $5,000 (excluding capitalized transaction costs and equity discount), for Eviana Health Corporation and Hyasynth Biologicals Inc., respectively.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Note 2: Net loss is from the date of acquisition to June 30, 2019 as per the associates’ most recently issued quarterly financial statements.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" color="#8cbddc" size="2">a) alpha-cannabis Pharma GmbH</font><br /><font style="font-family: times new roman,times;" size="2">On October 10, 2018, OHI executed an investment agreement with alpha-cannabis® Pharma GmbH (“ACG”) pursuant to which the Company acquired 8,333 common shares of ACG, representing a 25% stake in the capital of ACG, for aggregate proceeds of €1,625 ($2,436). Established in 2016, ACG is a privately-held company that is strategically positioned to serve the German medical cannabis market.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The Company has a commitment to deliver additional consideration of up to €875 in the form of OHI shares contingent on the achievement of certain gross margin-based milestones. The Company has estimated the fair value of these contingent shares as €649 ($972) as of the investment date and has included a corresponding long-term liability as a contingent share consideration in the statement of financial position. At August 31, 2019, the Company revalued the contingent liability and recorded a corresponding loss in the statement of operations of $145 for the year then ended.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Concurrent with the Company’s investment in ACG, the parties entered into a CBD supply agreement, whereby ACG may supply the Company with synthetic CBD, as well as a cannabis supply agreement, whereby OHI may supply ACG with dried cannabis flowers.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" color="#8cbddc" size="2">b) Eviana Health Corporation</font><br /><font style="font-family: times new roman,times;" size="2">On October 2, 2018, OHI participated in the debenture offering of Eviana Health Corporation (“Eviana”) by way of private placement. Eviana is a Canadian Securities Exchange (CSE) listed company that was established with the aim of delivering customized consumer health care products using natural hemp strains of cannabis sativa for cannabinoid-based topical creams and products. The Company’s investment is in the form of convertible debentures and share purchase warrants, which together provide a potential ownership interest of up to 21.4%, which is capped at 19.9% based on certain Canadian securities regulations and contractual obligations. In addition to this ownership interest, the Company also considered various qualitative factors in arriving at the determination that significant influence exists, including representation on Eviana’s board of directors, and thereby concluding that the equity method of accounting is appropriate.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The convertible debentures have a face value of $5,000, bear interest at 10% per annum, are non-redeemable, and mature on October 2, 2020. The convertible debentures are convertible at the option of the holder at any time at a price of $1.15 per share, or into 4,347,826 common shares. Conversion of the debentures may be forced by Eviana in the event that the volume weighted average price of the common shares of Eviana for ten consecutive days is greater than $2.15, subject to a minimum volume of 100,000 shares in each of those 10 days.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The share purchase warrants were acquired for no additional consideration, concurrent with the debenture offering, are transferrable, and are exercisable until October 2, 2020. 2,500 share purchase warrant units were acquired, each of which is convertible into 870 common shares per unit, or 2,175,000 common shares in aggregate, at an exercise price of $1.30 per share.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Concurrent with the Company’s investment in Eviana, the parties entered into a CBD oil supply agreement, whereby the Company has the right, but not obligation, to purchase up to 25% of Eviana’s annual CBD oil at 95% of the agreed raw CBD oil wholesale market price for a period of 5 years from the date on which the CBD oil is first made commercially available by Eviana for wholesale.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">At August 31, 2019, the Company identified indicators of impairment with respect to its investment in Eviana. The Company determined the recoverable amount of Eviana to approximate $3,000 based on a value in use (“VIU”) model that applied a discount rate of 35% to the forecast interest and principal payments of the debt component of the convertible debenture. If the discount rate were increased (decreased) by 5%, the impairment loss for the year-ended August 31, 2019 would increase (decrease) by $262.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" color="#8cbddc" size="2">c) Hyasynth Biologicals Inc.</font><br /><font style="font-family: times new roman,times;" size="2">On September 12, 2018, OHI invested in Hyasynth Biologicals Inc. (“Hyasynth”) by way of convertible secured debentures, to be purchased in three tranches and valued in the aggregate at $10,000. Tranche 1 was issued on this date and there are two additional Tranches that may be issued based on the achievement of specific milestones. Hyasynth is a privately-held biotechnology company based in Montreal and leader in the field of cannabinoid science and biosynthesis. The Company’s investment is in the form of convertible debentures, which provide a potential ownership interest of up to 43.4% based on Tranche 1. In addition to the ownership interest, the Company also considered various qualitative factors in arriving at the determination that significant influence exists, including representation on Hyasynth’s board of directors, and thereby concluded that the equity method of accounting is appropriate.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Tranche 1 of the convertible debentures have a face value of $5,000, bear interest at 8.0% per annum, are secured, and mature on the earlier of August 31, 2023 or the closing date of a qualified sale transaction, unless an automatic or optional conversion has occurred. Tranche 1 of the convertible debentures are convertible at the option of the holder at any time at a price of $40 per share, or into 125,000 common shares. Conversion of the debentures may be automatically triggered based on the completion of a qualified transaction or Hyasynth’s facility reaching a pre-defined production capacity. Tranche 2 and 3 of the convertible debentures, each of which commit $2.5 million for an aggregate of $5 million, have certain production-related milestones that must be achieved within a 24- and 36-month period, respectively, for issuance to occur.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Concurrent with the Company’s investment in Hyasynth, the parties entered into a CBD supply agreement, whereby the Company has the ability to purchase up to 100% of Hyasynth’s annual cannabinoid or cannabinoid-related production at a 10% discount to the agreed upon wholesale market price for a period of 10 years from the date Hyasynth commences commercial production of the products.</font></p>
55064000
102000
47555000
1957000
1215000
1215000
3736000841000
353000
488000
1654100011900000
11748000
152000
909000
2100000
19858000
20652000
2780000
6000
599000
2774000
19259000
3000
20649000
44969000
8767000
36202000
93144000
38309000
54835000
3372000
17100000
0.434
0.214
0.25
1.00
0.2500
0.1990
0.4340
<div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="3">4. SHORT TERM INVESTMENTS</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">The Company’s short-term investments included the following on August 31, 2019 and August 31, 2018:</p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font color="#8cbddc">DESCRIPTION</font></td>
<td align="left" width="1%"> </td>
<td align="center" width="13%">INTEREST %</td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="13%"><font color="#ffffff">AUGUST 31, 2019</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font color="#ffffff"> </font></td>
<td align="center" width="1%"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="13%"><font color="#ffffff">AUGUST 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">GIC - matured December 21, 2018</td>
<td align="left" width="1%"> </td>
<td align="center" width="13%">1.55%</td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="13%"> -</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="13%"> 25,000</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">GIC - matured August 27, 2019</td>
<td align="left" width="1%"> </td>
<td align="center" width="13%">2.00%</td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="13%">-</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="13%">50,000</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Equity securities in VIVO Cannabis Inc.</td>
<td align="left" width="1%"> </td>
<td align="center" width="13%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="13%">380</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="13%">-</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" width="1%"> </td>
<td align="center" width="13%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="13%"> 380</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="13%"> 75,000</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
</table>
<div align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </div>
<div align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">On October 16, 2018, the Company sold its wholly-owned subsidiary, THC, for consideration consisting of shares in the purchaser (an unaffiliated publicly-traded company), VIVO Cannabis Inc. These securities are carried at fair value through profit or loss. At August 31, 2019, the shares in this company had a fair value of $0.44 per share.</div>
</div>
203214000
199000
196281000
10024000
3223000
98639000
104714000
89000
219046000
233969000
45104000
1440000
2205000
14150000
47101000
22200000
11993000
7908000
40493000
2304000
2922000
48002000
0
0
-816000
-1997000
0
0
-1114000
-2956000
-726000
-1122000
-2656000
-6075000
2205000
11993000
37537000
1800000
66537000
2211000
70774000
65515000
87931000
7538000
0
-4237000
0
-8618000
-2068000
-14923000
2211000
65515000
79313000
5470000
1498000
1530000
-32000
<div>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font color="#8cbddc">DESCRIPTION</font></td>
<td align="left" width="1%"> </td>
<td align="center" width="13%">INTEREST %</td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="13%"><font color="#ffffff">AUGUST 31, 2019</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font color="#ffffff"> </font></td>
<td align="center" width="1%"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="13%"><font color="#ffffff">AUGUST 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">GIC - matured December 21, 2018</td>
<td align="left" width="1%"> </td>
<td align="center" width="13%">1.55%</td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="13%"> -</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="13%"> 25,000</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">GIC - matured August 27, 2019</td>
<td align="left" width="1%"> </td>
<td align="center" width="13%">2.00%</td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="13%">-</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="13%">50,000</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Equity securities in VIVO Cannabis Inc.</td>
<td align="left" width="1%"> </td>
<td align="center" width="13%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="13%">380</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="13%">-</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" width="1%"> </td>
<td align="center" width="13%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="13%"> 380</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="13%"> 75,000</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
</table>
</div>
<div>
<p align="justify" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="3">11. LONG-TERM DEBT</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#87b5cf" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#87b5cf" width="11%"><font size="2">AUGUST 31, 2019</font></td>
<td align="center" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#87b5cf" width="2%"><font size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#aeaaaa" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#aeaaaa" width="11%"><font size="2">AUGUST 31, 2018</font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#aeaaaa" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaed" width="11%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="11%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Bank of M ontreal ("BM O") senior secured term loan ("Term Loan") maturing M ay 31, 2022 at Bankers' Acceptance +2.50% (4.46%) with principal repayments starting February 28, 2020 based on a 10 year amortization (amended subsequent to year-end to M ay 31, 2020 - refer to Note 27)</font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2"> 50,000</font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2"> -</font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Farm Credit Canada ("FCC") credit facility refinanced with BM O Term Loan</font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2">1,740</font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">FCC real property loan refinanced with BM O Term Loan</font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2">1,194</font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">FCC real property loan refinanced with BM O Term Loan</font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2">-</font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Atlantic Canada Opportunities Agency ("ACOA") Business Development Program loan maturing September 1, 2024 with a 7 year amortization, bearing interest at an interest rate of 0%</font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2">314</font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2">406</font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Vehicle loans - five year term maturing June 17, 2024</font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2">98</font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Deferred financing costs</font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2">(836</font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2">)</font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2">(42</font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2">49,576</font></td>
<td align="left" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2">3,298</font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Less: current portion of long term debt</font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2">(3,509</font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2">)</font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2">(421</font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Long-term portion</font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#e1eaed" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#e1eaed" valign="bottom" width="11%"><font size="2"> 46,067</font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#e1eaed" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#d6d6d6" valign="bottom" width="11%"><font size="2"> 2,877</font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#d6d6d6" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
</table>
<br style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" />
<p align="justify" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">On November 30, 2018, the Company closed its third loan with FCC for $10,000. Transaction costs of $149 were incurred in connection with this loan, which had been capitalized against the loan balance. This loan, along with the other two FCC loans noted in the above table, were refinanced with the BMO Term Loan described below. Since the third loan was only outstanding during the current fiscal year, it has not been disclosed in the above table.</font></p>
<p align="justify" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">On May 31, 2019, the Company closed a credit facility with Bank of Montreal (“BMO”) as lead arranger and agent as well as a syndicate including three other lenders. The facility consists of a $115,000 term loan (“Term Loan”) and a $25,000 revolving credit facility (“Revolver”, or together, the “Facilities”), both of which mature on May 31, 2022. Included in the facility is an uncommitted option to increase the Facilities by an incremental $35,000 to a total of $175,000, subject to agreement by BMO and the syndicate lenders and satisfaction of certain legal and business conditions.</font></p>
<p align="justify" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The Facilities are secured by assets of the Company and its subsidiaries. The proceeds of the term loan will be used to fund the Phase 4 and 5 expansions of the Moncton campus and were also used to refinance the Company’s long-term debt with FCC. The revolving credit facility may be used for general corporate and working capital purposes.</font></p>
<p align="justify" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Pursuant to the agreed upon conditions of the Facilities, the Company has initially drawn $50,000 of the Term Loan on closing and can continue to draw down additional funds as required up to the $115,000 Term Loan commitment through to November 30, 2019 (refer to Note 27 for amendment made subsequent to year-end extending date to March 31, 2020). Principal repayments on the Term Loan will commence on February 28, 2020 (refer to Note 27 for amendment made subsequent to year-end deferring start date to May 31, 2020) at a rate of 2.5% per quarter of the total Term Loan balance. The Company may, at its discretion, repay the balance of the Facilities without penalty, at any time.</font></p>
<p align="justify" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Under the terms of the Credit Facility, the Company can elect, at its sole discretion, to receive advances under the Term Loan through certain availment options, which includes prime rate loans and bankers’ acceptances with maturity dates between 28 and 182 days. The Company, therefore, has the choice to continuously roll over the bankers’ acceptances upon their maturities or to convert the then outstanding principal and interest into prime rate loans at any time before May 31, 2022. The interest rate of the Facilities is a set margin over the above noted availment options, which may increase or decrease based on a pricing grid linked to the Company’s debt to EBITDA coverage at each quarter-end.</font></p>
<p align="justify" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">During the year ended August 31, 2019, the Company converted its outstanding principal amount under the Term Loan to bankers’ acceptances, which reduced the cash interest rate from 5.70% (effective interest rate of 6.39%) as at May 31, 2019 to 4.46% (effective interest rate of 5.18%) as at August 31, 2019. In accordance with IFRS 9, the loan conversion was determined to not be a modification of the loan terms. During the year ended August 31, 2019, the Company rolled over the facility on a monthly basis through bankers’ acceptances with an average cash interest rate of 4.80% .</font></p>
<p align="justify" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Transaction costs incurred with respect to the Facilities totaled $1,101, which have been allocated against the Term Loan ($915) and Revolver ($186 split between prepaid assets and deferred charges) based on the relative balance of the fully drawn facilities. The effective interest rate for the Term Loan based on these capitalized transaction costs and the current cash interest rate is approximately 5.18% at August 31, 2019. The Facilities contain customary financial and restrictive covenants. The Company was in compliance with all covenants at August 31, 2019.</font></p>
<p align="justify" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Subsequent to the year-end, the Company amended certain terms of the Facilities as disclosed in Note 27.</font></p>
<p align="justify" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The FCC loans previously outstanding for the Company were extinguished and refinanced as part of the above noted Facilities. Previously capitalized transaction costs were recorded as a loss on the extinguishment of the FCC loans and have been included in financing costs for the period.</font></p>
<p align="justify" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Principal repayments required on the long-term debt in the next five fiscal years are as follows:</font></p>
<div align="center" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">
<table style="width: 50%; border-collapse: collapse; font-size: 10pt; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">2020</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="22%"><font size="2"> 3,830</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">2021</font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="right" width="22%"><font size="2">5,080</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">2022</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="22%"><font size="2">41,330</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">2023</font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="right" width="22%"><font size="2">67</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">2024</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="22%"><font size="2">60</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;"><font size="2">Thereafter</font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" width="22%"><font size="2">45</font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#eeeeee"><font size="2">Total</font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#eeeeee" width="22%"><font size="2"> 50,412</font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
</table>
</div>
</div>
8333
10000000
2436000
1625000
12758000
875000
11108000
972000
649000
302567000
428525000
3173000
484000
<div align="center" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">
<table style="border-color: black; width: 50%; font-size: 10pt; border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left" bgcolor="#eeeeee">2020</td>
<td align="left" width="1%" bgcolor="#eeeeee">$</td>
<td align="right" width="22%" bgcolor="#eeeeee"> 3,830</td>
<td align="left" width="2%" bgcolor="#eeeeee"> </td>
</tr>
<tr valign="top">
<td align="left">2021</td>
<td align="left" width="1%"> </td>
<td align="right" width="22%">5,080</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">2022</td>
<td align="left" width="1%" bgcolor="#eeeeee"> </td>
<td align="right" width="22%" bgcolor="#eeeeee">41,330</td>
<td align="left" width="2%" bgcolor="#eeeeee"> </td>
</tr>
<tr valign="top">
<td align="left">2023</td>
<td align="left" width="1%"> </td>
<td align="right" width="22%">67</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">2024</td>
<td align="left" width="1%" bgcolor="#eeeeee"> </td>
<td align="right" width="22%" bgcolor="#eeeeee">60</td>
<td align="left" width="2%" bgcolor="#eeeeee"> </td>
</tr>
<tr valign="top">
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;">Thereafter</td>
<td align="left" width="1%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;"> </td>
<td align="right" width="22%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;">45</td>
<td align="left" width="2%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;"> </td>
</tr>
<tr valign="top">
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#eeeeee">Total</td>
<td align="left" width="1%" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#eeeeee">$</td>
<td align="right" width="22%" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#eeeeee"> 50,412</td>
<td align="left" width="2%" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#eeeeee"> </td>
</tr>
</table>
</div>
<table style="border-color: black; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 10pt; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" width="1%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#87b5cf"> </td>
<td align="center" width="11%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#87b5cf">AUGUST 31, 2019</td>
<td align="center" width="2%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#87b5cf"> </td>
<td align="center" width="1%"> </td>
<td align="center" width="1%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#aeaaaa"> </td>
<td align="center" width="11%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#aeaaaa">AUGUST 31, 2018</td>
<td align="left" width="2%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#aeaaaa"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="center" width="1%" bgcolor="#e1eaed"> </td>
<td align="center" width="11%" bgcolor="#e1eaed"> </td>
<td align="center" width="2%" bgcolor="#e1eaed"> </td>
<td align="left" width="1%"> </td>
<td align="left" width="1%" bgcolor="#d6d6d6"> </td>
<td align="left" width="11%" bgcolor="#d6d6d6"> </td>
<td align="left" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Bank of M ontreal ("BM O") senior secured term loan ("Term Loan") maturing M ay 31, 2022 at Bankers' Acceptance +2.50% (4.46%) with principal repayments starting February 28, 2020 based on a 10 year amortization (amended subsequent to year-end to M ay 31, 2020 - refer to Note 27)</td>
<td align="left" width="1%" valign="bottom" bgcolor="#e1eaed">$</td>
<td align="right" width="11%" valign="bottom" bgcolor="#e1eaed"> 50,000</td>
<td align="left" width="2%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#d6d6d6">$</td>
<td align="right" width="11%" valign="bottom" bgcolor="#d6d6d6"> -</td>
<td align="left" width="2%" valign="bottom" bgcolor="#d6d6d6"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="11%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="2%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="11%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="2%" valign="bottom" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Farm Credit Canada ("FCC") credit facility refinanced with BM O Term Loan</td>
<td align="left" width="1%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="11%" valign="bottom" bgcolor="#e1eaed">-</td>
<td align="left" width="2%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="right" width="11%" valign="bottom" bgcolor="#d6d6d6">1,740</td>
<td align="left" width="2%" valign="bottom" bgcolor="#d6d6d6"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="11%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="2%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="11%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="2%" valign="bottom" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">FCC real property loan refinanced with BM O Term Loan</td>
<td align="left" width="1%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="11%" valign="bottom" bgcolor="#e1eaed">-</td>
<td align="left" width="2%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="right" width="11%" valign="bottom" bgcolor="#d6d6d6">1,194</td>
<td align="left" width="2%" valign="bottom" bgcolor="#d6d6d6"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="11%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="2%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="11%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="2%" valign="bottom" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">FCC real property loan refinanced with BM O Term Loan</td>
<td align="left" width="1%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="11%" valign="bottom" bgcolor="#e1eaed">-</td>
<td align="left" width="2%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="right" width="11%" valign="bottom" bgcolor="#d6d6d6">-</td>
<td align="left" width="2%" valign="bottom" bgcolor="#d6d6d6"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="11%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="2%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="11%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="2%" valign="bottom" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Atlantic Canada Opportunities Agency ("ACOA") Business Development Program loan maturing September 1, 2024 with a 7 year amortization, bearing interest at an interest rate of 0%</td>
<td align="left" width="1%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="11%" valign="bottom"
bgcolor="#e1eaed">314</td>
<td align="left" width="2%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="right" width="11%" valign="bottom" bgcolor="#d6d6d6">406</td>
<td align="left" width="2%" valign="bottom" bgcolor="#d6d6d6"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="11%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="2%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="11%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="2%" valign="bottom" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Vehicle loans - five year term maturing June 17, 2024</td>
<td align="left" width="1%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="11%" valign="bottom" bgcolor="#e1eaed">98</td>
<td align="left" width="2%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="11%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="2%" valign="bottom" bgcolor="#d6d6d6"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="11%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="2%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="11%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="2%" valign="bottom" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Deferred financing costs</td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed"> </td>
<td align="right" width="11%" valign="bottom" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed">(836</td>
<td align="left" width="2%" valign="bottom" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed">)</td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6"> </td>
<td align="right" width="11%" valign="bottom" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6">(42</td>
<td align="left" width="2%" valign="bottom" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6">)</td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="11%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="2%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="11%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="2%" valign="bottom" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="11%" valign="bottom" bgcolor="#e1eaed">49,576</td>
<td align="left" width="2%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="right" width="11%" valign="bottom" bgcolor="#d6d6d6">3,298</td>
<td align="left" width="2%" valign="bottom" bgcolor="#d6d6d6"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="11%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="2%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="11%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="2%" valign="bottom" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Less: current portion of long term debt</td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed"> </td>
<td align="right" width="11%" valign="bottom" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed">(3,509</td>
<td align="left" width="2%" valign="bottom" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed">)</td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6"> </td>
<td align="right" width="11%" valign="bottom" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6">(421</td>
<td align="left" width="2%" valign="bottom" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6">)</td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="11%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="right" width="2%" valign="bottom" bgcolor="#e1eaed"> </td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="11%" valign="bottom" bgcolor="#d6d6d6"> </td>
<td align="left" width="2%" valign="bottom" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Long-term portion</td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#e1eaed">$</td>
<td align="right" width="11%" valign="bottom" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#e1eaed"> 46,067</td>
<td align="left" width="2%" valign="bottom" style="border-bottom-color: #000000;
border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#e1eaed"> </td>
<td align="left" width="1%" valign="bottom"> </td>
<td align="left" width="1%" valign="bottom" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#d6d6d6">$</td>
<td align="right" width="11%" valign="bottom" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#d6d6d6"> 2,877</td>
<td align="left" width="2%" valign="bottom" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#d6d6d6"> </td>
</tr>
</table>
10764000
65000
40355000
40355000
40355000
0
0
0
145000
-145000
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="3">15. RELATED PARTY TRANSACTIONS</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Key management personnel are those persons having the authority and responsibility for planning, directing and controlling activities of the entity, directly or indirectly. The key management personnel of the Company are the members of the Company’s executive management team and Board of Directors. The transactions are conducted at arm’s length and in the normal course of operations.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">(i) Management and Board compensation</font><br /><font size="2">For the years ended August 31, 2019 and 2018, the Company’s expenses included the following management and board compensation:</font></p>
<table align="center" style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="11%"><font size="2">AUGUST 31, 2019</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="11%"><font size="2">AUGUST 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Salaries and consulting fees</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font size="2"> 2,521</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font size="2"> 2,094</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Share-based compensation</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%"><font size="2">5,155</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%"><font size="2">3,939</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Total key management compensation</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"><font size="2"> 7,676</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%"><font size="2"> 6,033</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">During the year ended August 31, 2019, 685,000 stock options (August 31, 2018 – 1,461,648) were granted to key management personnel at an average exercise price of $4.75 (August 31, 2018 - $3.63) and aggregate fair value of $1,736 (August 31, 2018 - $2,417). In addition, during the year ended August 31, 2019, 631,949 RSUs (August 31, 2018 – 129,962), were granted to key management personnel with an aggregate fair value of $3,002 (August 31, 2018 – $856).</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">During the year ended August 31, 2019, 37,500 share purchase warrants (August 31, 2018 – nil) were exercised by key management personnel and directors at an exercise price of $4.00 per share.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">(ii) Significant transactions with associates</font><br /><font size="2">For the year ended August 31, 2019, the Company received interest income of $374 (August 31, 2018 - $nil) on its convertible debenture investment in Eviana disclosed in Note 14, which has been recorded as distributions under the equity accounting method. The Company had no other transactions nor any balances outstanding with its associates.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="3">7. BIOLOGICAL ASSETS</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The Company measures biological assets consisting of cannabis plants at fair value less costs to sell up to the point of harvest, which becomes the basis for the cost of finished goods inventories after harvest. Subsequent expenditures on these finished goods inventories after harvest are capitalized based on IAS 2 <i>Inventories.</i></font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The changes in the carrying value of biological assets as of August 31, 2019 and 2018 are as follows:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="12%"><font size="2">OTHER</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" valign="bottom" width="12%"><font size="2">BIOLOGICAL ASSETS</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" valign="bottom" width="12%"><font size="2">CANNABIS ON PLANTS</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" valign="bottom" width="12%"><font size="2">TOTAL</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="12%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="12%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="12%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">
<p style="text-indent: -15pt; margin-left: 15pt;"><font size="2">Carrying amount, August 31, 2017</font></p>
</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2"> 6</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2"> 2,774</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2"> 2,780</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td>
<p style="text-indent: -15pt; margin-left: 15pt;"><font size="2"> </font></p>
</td>
<td valign="bottom" width="1%"><font size="2"> </font></td>
<td valign="bottom" width="12%"><font size="2"> </font></td>
<td valign="bottom" width="2%"><font size="2"> </font></td>
<td valign="bottom" width="1%"><font size="2"> </font></td>
<td valign="bottom" width="12%"><font size="2"> </font></td>
<td valign="bottom" width="2%"><font size="2"> </font></td>
<td valign="bottom" width="1%"><font size="2"> </font></td>
<td valign="bottom" width="12%"><font size="2"> </font></td>
<td valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">
<p style="text-indent: -15pt; margin-left: 15pt;"><font size="2">Add (less) net production costs</font></p>
</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2">593</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2">14,357</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2">14,950</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left">
<p style="text-indent: -15pt; margin-left: 15pt;"><font size="2"> </font></p>
</td>
<td align="right" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">
<p style="text-indent: -15pt; margin-left: 15pt;"><font size="2">Net change in fair value less costs to sell due to biological transformation</font></p>
</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2">10,736</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2">10,736</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td>
<p style="text-indent: -15pt; margin-left: 15pt;"><font size="2"> </font></p>
</td>
<td valign="bottom" width="1%"><font size="2"> </font></td>
<td valign="bottom" width="12%"><font size="2"> </font></td>
<td valign="bottom" width="2%"><font size="2"> </font></td>
<td valign="bottom" width="1%"><font size="2"> </font></td>
<td valign="bottom" width="12%"><font size="2"> </font></td>
<td valign="bottom" width="2%"><font size="2"> </font></td>
<td valign="bottom" width="1%"><font size="2"> </font></td>
<td valign="bottom" width="12%"><font size="2"> </font></td>
<td valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">
<p style="text-indent: -15pt; margin-left: 15pt;"><font size="2">Transferred to inventory upon harvest</font></p>
</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2">(8,608</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2">)</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2">(8,608</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left">
<p style="text-indent: -15pt; margin-left: 15pt;"><font size="2"> </font></p>
</td>
<td align="right" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">
<p style="text-indent: -15pt; margin-left: 15pt;"><font size="2">Carrying amount, August 31, 2018</font></p>
</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2"> 599</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2"> 19,259</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2"> 19,858</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td>
<p style="text-indent: -15pt; margin-left: 15pt;"><font size="2"> </font></p>
</td>
<td valign="bottom" width="1%"><font size="2"> </font></td>
<td valign="bottom" width="12%"><font size="2"> </font></td>
<td valign="bottom" width="2%"><font size="2"> </font></td>
<td valign="bottom" width="1%"><font size="2"> </font></td>
<td valign="bottom" width="12%"><font size="2"> </font></td>
<td valign="bottom" width="2%"><font size="2"> </font></td>
<td valign="bottom" width="1%"><font size="2"> </font></td>
<td valign="bottom" width="12%"><font size="2"> </font></td>
<td valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">
<p style="text-indent: -15pt; margin-left: 15pt;"><font size="2">Add (less) net production costs</font></p>
</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2">(596</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2">37,534</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2">36,938</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left">
<p style="text-indent: -15pt; margin-left: 15pt;"><font size="2"> </font></p>
</td>
<td align="right" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">
<p style="text-indent: -15pt; margin-left: 15pt;"><font size="2">Net change in fair value less costs to sell due to biological transformation</font></p>
</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2">(8,060</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2">(8,060</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td>
<p style="text-indent: -15pt; margin-left: 15pt;"><font size="2"> </font></p>
</td>
<td valign="bottom" width="1%"><font size="2"> </font></td>
<td valign="bottom" width="12%"><font size="2"> </font></td>
<td valign="bottom" width="2%"><font size="2"> </font></td>
<td valign="bottom" width="1%"><font size="2"> </font></td>
<td valign="bottom" width="12%"><font size="2"> </font></td>
<td valign="bottom" width="2%"><font size="2"> </font></td>
<td valign="bottom" width="1%"><font size="2"> </font></td>
<td valign="bottom" width="12%"><font size="2"> </font></td>
<td valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">
<p style="text-indent: -15pt; margin-left: 15pt;"><font size="2">Transferred to inventory upon harvest</font></p>
</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2">(28,084</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2">)</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2">(28,084</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left">
<p style="text-indent: -15pt; margin-left: 15pt;"><font size="2"> </font></p>
</td>
<td align="right" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">
<p style="text-indent: -15pt; margin-left: 15pt;"><font size="2">Carrying amount, August 31, 2019</font></p>
</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2"> 3</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2"> 20,649</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="12%"><font size="2"> 20,652</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The fair value less costs to sell of biological assets is determined using a model which estimates the expected harvest yield in grams for plants currently being cultivated, and then adjusts that amount for the expected selling price per gram and also for any additional costs to be incurred, such as post-harvest costs. The following unobservable inputs, all of which are classified as Level 3 on the fair value hierarchy (see Note 17), are used in determining the fair value of biological assets:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr>
<td align="center" valign="top" width="5%"><font color="#8cbddc" size="2">i.</font></td>
<td>
<p align="justify"><font size="2">Average selling price per gram – calculated as the weighted average historical selling price of cannabis sold by the Company, adjusted for expectations about future pricing;</font></p>
</td>
</tr>
<tr>
<td align="center" width="5%"><font color="#8cbddc" size="2"> </font></td>
<td><font size="2"> </font></td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font color="#8cbddc" size="2">ii.</font></td>
<td>
<p align="justify"><font size="2">Yield by plant – represents the number of grams of finished cannabis inventory which are expected to be obtained from each harvested cannabis plant;</font></p>
</td>
</tr>
<tr>
<td align="center" width="5%"><font color="#8cbddc" size="2"> </font></td>
<td><font size="2"> </font></td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font color="#8cbddc" size="2">iii.</font></td>
<td>
<p align="justify"><font size="2">Wastage of plants based on their various stages of growth – represents the weighted average percentage of biological assets which are expected to fail to mature into cannabis plants that can be harvested;</font></p>
</td>
</tr>
<tr>
<td align="center" width="5%"><font color="#8cbddc" size="2"> </font></td>
<td><font size="2"> </font></td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font color="#8cbddc" size="2">iv.</font></td>
<td>
<p align="justify"><font size="2">Post-harvest costs – calculated as the cost per gram of harvested cannabis to complete the sale of cannabis plants post-harvest, consisting of the cost of direct and indirect materials and labour related to drying, labelling and packing.</font></p>
</td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The Company estimates the harvest yields for the cannabis on plants at various stages of growth. As of August 31, 2019, it is expected that the Company’s biological assets will yield 16,595 kilograms (August 31, 2018 – 11,036 kilograms) of cannabis when eventually harvested. The Company’s estimates are, by their nature, subject to change and differences from the anticipated yield will be reflected in the fair value adjustment to biological assets in future periods. The Company accretes fair value on a straight-line basis according to stage of growth. As a result, a cannabis plant that is 50% through its 19-week growing cycle would be ascribed approximately 50% of its harvest date expected fair value less costs to sell (subject to wastage adjustments).</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Management believes the most significant unobservable inputs and their impact on fair value are as follows:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font color="#8cbddc" size="2">SIGNIFICANT INPUTS &</font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="center" colspan="4" nowrap="nowrap"><font size="2">WEIGHTED AVERAGE INPUT</font></td>
<td align="center" width="2%" nowrap="nowrap"><font size="2"> </font></td>
<td align="center" width="1%" nowrap="nowrap"><font size="2"> </font></td>
<td align="center" width="11%" nowrap="nowrap"><font size="2"> </font></td>
<td align="center" width="2%" nowrap="nowrap"><font size="2"> </font></td>
<td align="center" width="1%" nowrap="nowrap"><font size="2"> </font></td>
<td align="center" colspan="4" nowrap="nowrap"><font size="2">EFFECT ON FAIR VALUE</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font color="#8cbddc" size="2">ASSUMPTIONS</font></td>
<td align="left" style="border-bottom: #000000 2px solid;" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 2px solid;" width="11%" nowrap="nowrap"><font size="2">AUG. 31, 2019</font></td>
<td align="center" width="2%" nowrap="nowrap"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 2px solid;" width="1%" nowrap="nowrap"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 2px solid;" width="11%" nowrap="nowrap"><font size="2">AUG. 31, 2018</font></td>
<td align="center" width="2%" nowrap="nowrap"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 2px solid;" width="1%" nowrap="nowrap"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 2px solid;" width="11%" nowrap="nowrap"><font size="2">SENSITIVITY</font></td>
<td align="center" width="2%" nowrap="nowrap"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 2px solid;" width="1%" nowrap="nowrap"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 2px solid;" width="11%" nowrap="nowrap"><font size="2">AUG. 31, 2019</font></td>
<td align="center" width="2%" nowrap="nowrap"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 2px solid;" width="1%" nowrap="nowrap"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 2px solid;" width="11%" nowrap="nowrap"><font size="2">AUG. 31, 2018</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="11%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="11%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" width="11%"><font size="2"> </font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="11%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="11%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee" valign="bottom"><font size="2">Average net selling price per gram</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%"><font size="2"> 5.65</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%"><font size="2"> 5.65</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%"><font size="2">Increase or decrease by $1.00 per gram</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%"><font size="2"> 3,657</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%"><font size="2"> 4,275</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left" valign="bottom"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="right" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="11%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee" valign="bottom"><font size="2">Average yield per plant</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%"><font size="2">151 grams</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%"><font size="2">149 grams</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%"><font size="2">Increase or decrease by 10 grams</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%"><font size="2"> 1,367</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%"><font size="2"> 1,292</font></td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The fair value adjustment to biological assets and inventory sold consists of the following:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="12%"><font size="2">AUGUST 31, 2019</font></td>
<td align="center" bgcolor="#87b5cf" width="2%"><font size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="12%"><font color="#ffffff" size="2">AUGUST 31, 2018</font></td>
<td align="left" bgcolor="#aeaaaa" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaed" width="12%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" width="12%"><font color="#ffffff" size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Realized fair value amounts included in inventory sold</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2"> (50,477</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2">)</font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2"> (5,822</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Increase (decrease) in fair value on growth of biological assets</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2">75,338</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2">51,840</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Adjustment to net realizable value</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="12%"><font size="2">(14,284</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2">)</font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="12%"><font size="2">-</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Fair value adjustment to biological assets</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="12%"><font size="2"> 10,577</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="12%"><font size="2"> 46,018</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
</table>
65000
11250000
43864000
1329000
62000
0.199
3298000
0
1740000
1194000
406000
0
0
49576000
50000000
0
0
314000
98000
0
50412000
3830000
46410000
127000
45000
<table align="center" style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="11%">AUGUST 31, 2019</td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"> </td>
<td align="center" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="11%">AUGUST 31, 2018</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Salaries and consulting fees</td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="11%"> 2,521</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="11%"> 2,094</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Share-based compensation</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%">5,155</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%">3,939</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Total key management compensation</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"> 7,676</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%"> 6,033</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
</table>
6033000
7676000
95866000
0
0.016
1.5
0.646
3939000
5155000
2520000
4443000
0.00
75000000
25000000
50000000
0
380000
0
0
380000
115000000
115000000
10736000
0
10736000
-8060000
0
-8060000
0.0600
0.080
0.0446
0.00
8608000
0
8608000
28084000
0
28084000
421000
3509000
14950000
593000
14357000
36938000
-596000
37534000
1117000
0.0155
0.0200
18273000
21179000
5.42
40
117973000
101519000
8290000
5175000
2877000
46067000
2018000
2312000
-294000
100919000
112166000
-11247000
150000
2056648
1461648
3589500
685000
350000
220000
200000
504801
2167864
8086637
0
4328625
26045000
17707000
2417000
1736000
144000
157790000
318125000
-43000
759000
-8783000
184594000
327006000
82857000
99531000
157790000
3081000
26045000
-19755000
759000
318125000
17707000
-43000
-8783000
302567000
428525000
0.44
856000
3002000
4.00
0.00
1.30
302567000
428525000
8214286
4.00
1.30
37500
43308374330837
7739205
1.38
4.00
125437
347432
1.35
4.00
117973000
101519000
4.00
714000
592000
374000
0.25
0.95
3000000
0.35
7709746
8833194
1814449
2003333
1462344
1705568
1847500
6352049
2.10
4.23
1.48
3.90
3.63
7.59
4.75
5.05
4.71
1.43
1.92
194150
298188
2.43
6.41
3830000
5080000
41330000
67000
60000
45000
<div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="3">6. LOAN RECEIVABLE</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">On July 26, 2019, the Company entered into an advance payment and support agreement (“Payment Agreement”) with 703454 N.B. Inc. (carrying on business as 1812 Hemp) (“1812 Hemp”). Under the terms of the agreement, the Company will advance up to $3,000 until October 31, 2019 to 1812 Hemp in the form of a secured loan. These amounts may be applied against future purchases of hemp under the license and supply agreement described in Note 10. The aggregate amount of advances outstanding as of January 1, 2020 will accrue interest of 9.0% per annum, calculated monthly, until the entire balance of advances is paid. The full amount of any outstanding advances are due and payable by 1812 Hemp on the earlier of: i) June 30, 2020; ii) the date on which 1812 Hemp breaches or defaults on any of its agreements; and iii) the date on which the license and supply agreement is terminated in accordance with its terms. Notwithstanding the foregoing, in the event that on or before February 28, 2020 1812 Hemp has offered the Company sufficient hemp to retire in full the outstanding balance of advances and the Company’s purchases of such hemp are not sufficient to retire in full the outstanding balance of advances, then 1812 Hemp’s obligation to repay the outstanding balance of advances shall be suspended until June 30, 2021.</p>
<div align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">At August 31, 2019, $909 remains outstanding with respect to this arrangement. Subsequent to year-end, additional advances were made as described in Note 27<i>.</i></div>
</div>
12429000
1154000
138000
80413000
0
0
00
1713400017134000
12429000
97547000
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="3">16. CAPITAL MANAGEMENT</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The Company considers its capital to consist of share capital, reserve for options and warrants, long-term debt, unsecured convertible debentures, accumulated other comprehensive income, and retained earnings, which is disclosed in the August 31, 2019 consolidated statement of financial position as $376,582 (August 31, 2018 - $283,758).</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The Company manages its capital structure and adjusts it based on funds available to the Company, in order to fund its expansion and construction of its growing facility. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company’s management to sustain future development of the business.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative stage of the Company, is reasonable. There has been no change in how the Company defines or manages capital during the period.</font></p>
5525000
537000
54000
37788000
2500000
5000000
5.65
5.65
149
151
10
4275000
3657000
1292000
1367000
283758000
376582000
1.00
0.09
8.07
6.02
7.42
8.20
9.13
9.70
4906183
1365465
1563999
756218
626151
594350
50412000
0.10
5615000
37892000
46018000
10577000
51633000
48469000
P10Y
P7Y
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="3">17. FAIR VALUE OF FINANCIAL INSTRUMENTS AND FINANCIAL RISK FACTORS</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">i) Fair Value of Financial Instruments</font><br /><font size="2">Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants. The Company records certain financial instruments at fair value. The Company’s financial instruments include cash, short-term investments (including marketable securities), accounts receivable, loan receivable, accounts payable and accrued liabilities, long-term debt, unsecured convertible debentures, and contingent share consideration.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:</font></p>
<ul style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">
<li>
<p><font size="2">Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date.</font></p>
</li>
<li>
<p><font size="2">Level 2 inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and</font></p>
</li>
</ul>
<ul style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">
<li><font size="2">Level 3 inputs are unobservable inputs for the asset or liability.</font></li>
</ul>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The fair value of cash and cash equivalents, short-term investments, accounts receivable, loan receivable, accounts payable and accrued liabilities approximate their carrying amounts due to their short-term nature. The fair value of marketable securities is based on quoted prices in active markets and is reflected in the carrying value of these financial assets. The fair value of long-term debt approximates $50,412.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The fair value of the contingent share consideration is based on Level 3 unobservable inputs. The determination of the fair value of this liability is primarily driven by the Company’s expectations of the investment in associate achieving certain milestones. The expected milestones were assigned probabilities and the expected related cash flows were discounted to derive the fair value of the contingent consideration. At August 31, 2019, the probability of achieving the milestones was estimated to be 100% and the discount rate was estimated to be 20%. If the probabilities of achieving the milestones decreased by 10%, the estimated fair value of the contingent share consideration would decrease by approximately $160. If the discount rates increased or decreased by 5%, the estimated fair value of contingent consideration would decrease or increase, respectively, by approximately $46.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">During the period, there were no transfers of amounts between Levels 1, 2 and 3.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">ii) Financial Risk Factors</font><br /><font size="2">The Company is exposed to various risks through its financial instruments, as follows:</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">(i) <b>Credit risk</b> arises from deposits with banks, short-term investments (excluding investments in equity securities), and outstanding trade and loan receivables. For trade receivables, the Company does not hold any collateral as security but mitigates this risk by dealing only with what management believes to be financially sound counterparties and, accordingly, does not anticipate significant loss for non-performance. For other receivables, out of the normal course of business such as the loan receivable, management generally obtains guarantees and general security agreements. The maximum exposure to credit risk approximates the $64,476 (August 31, 2018 - $133,800) of cash, short term investments, accounts receivable, and loans receivable on the balance sheet.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">As of August 31, 2019 and 2018, the Company’s aging of trade receivables was approximately as follows:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="17%"><font color="#ffffff" size="2">AUGUST 31, 2019</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="2%"><font color="#ffffff" size="2"> </font></td>
<td align="center" width="2%"><font color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="17%"><font color="#ffffff" size="2">AUGUST 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">0-60 days</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="17%"><font size="2"> 11,748</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="17%"><font size="2"> 353</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">61-120 days</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="17%"><font size="2">152</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="17%"><font size="2">488</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Gross trade receivables</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="17%"><font size="2"> 11,900</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="17%"><font size="2"> 841</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Less: Provision for doubtful accounts</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="17%"><font size="2">(268</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font size="2">)</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="17%"><font size="2">(48</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="17%"><font size="2"> 11,632</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="17%"><font size="2"> 793</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">(ii)<b> Liquidity risk - </b>The Company’s liquidity risk is the risk the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by reviewing on an ongoing basis its capital requirements. At August 31, 2019, the Company had $47,555 (August 31, 2018 – $55,064) of cash and working capital of $152,417 (August 31, 2018 - $191,964). Further, the Company has access additional capital by way of its committed debt Facilities as described in Note 11.<b></b></font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The Company is obligated to the following contractual maturities relating to their undiscounted cash flows:</font></p>
<div style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">
<table style="width: 100%; border-collapse: collapse; font-size: 10pt; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left" valign="middle"></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="9%"><font size="2">Carrying</font><br /><font size="2">Amount</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="9%"><font size="2">Contractual</font><br /><font size="2">Cash Flows</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="9%"><font size="2">Less than</font><br /><font size="2">1 year</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="9%"><font size="2">1 to 3 years</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="9%"><font size="2">3 to 5 years</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="9%"><font size="2">More than</font><br /><font size="2">5 years</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Accounts payable and accrued liabilities</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font size="2"> 40,355</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font size="2"> 40,355</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font size="2"> 40,355</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Long-term debt</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font size="2">49,576</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font size="2">50,412</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font size="2">3,830</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font size="2">46,410</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font size="2">127</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font size="2">45</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Interest payments</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font size="2">6,696</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font size="2">2,232</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font size="2">4,464</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Operating lease obligations</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="9%"><font size="2">-</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="9%"><font size="2">3,074</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="9%"><font size="2">1,180</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="9%"><font size="2">993</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="9%"><font size="2">901</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="9%"><font size="2">-</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="9%"><font size="2"> 89,931</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="9%"><font size="2"> 100,537</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="9%"><font size="2"> 47,597</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="9%"><font size="2"> 51,867</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="9%"><font size="2"> 1,028</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="9%"><font size="2"> 45</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
</tr>
</table>
</div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The contractual maturities noted above are based on contractual due dates of the respective financial liabilities. Interest payments for the BMO Term Loan are based on the cash interest rate in effect at August 31, 2019, which is subject to change as described in Note 11.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">In connection with the Company’s Moncton Campus expansion plans, the Company is contractually committed to approximately $20,000 of capital expenditures. An incremental $52,800 of uncommitted capital expenditures are estimated to be required to meet the Company’s planned growth and activities, most of which pertains to the Phase 4 and Phase 5 expansion plans.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">(iii) <b>Market risk</b> is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk for the Company comprises of:</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b>Interest rate risk</b> is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk at August 31, 2019 pursuant to the variable rate loans described in Note 11. A 1% change in benchmark interest rates will increase or decrease the Company’s interest expense by $500 (August 31, 2019 - $29) per year.</font></p>
1465000
7942000
May 31, 2022
September 1, 2024
June 17, 2024
5437000
60000
14625000
<table align="center" style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="17%"><font color="#ffffff">AUGUST 31, 2019</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="2%"><font color="#ffffff"> </font></td>
<td align="center" width="2%"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="17%"><font color="#ffffff">AUGUST 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">0-60 days</td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="17%"> 11,748</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="17%"> 353</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">61-120 days</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="17%">152</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="17%">488</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Gross trade receivables</td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="17%"> 11,900</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="17%"> 841</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Less: Provision for doubtful accounts</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="17%">(268</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="17%">(48</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="17%"> 11,632</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="2%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="17%"> 793</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
</table>
0.0159
0.0226
0.0120
0.0242
5.0
6.5
5.0
6.5
2
2
0.62
0.69
0.64
0.71
0.00
0.00
0.081
0.150
0.073
0.080
<table align="center" style="width: 100%; border-collapse: collapse; font-size: 10pt; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left" valign="middle"></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="9%"><font style="font-family: times new roman,times;">Carrying</font><br /><font style="font-family: times new roman,times;">Amount</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="9%"><font style="font-family: times new roman,times;">Contractual</font><br /><font style="font-family: times new roman,times;">Cash Flows</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="9%"><font style="font-family: times new roman,times;">Less than</font><br /><font style="font-family: times new roman,times;">1 year</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="9%"><font style="font-family: times new roman,times;">1 to 3 years</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="9%"><font style="font-family: times new roman,times;">3 to 5 years</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="9%"><font style="font-family: times new roman,times;">More than</font><br /><font style="font-family: times new roman,times;">5 years</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Accounts payable and accrued liabilities</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;"> 40,355</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;"> 40,355</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;"> 40,355</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Long-term debt</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">49,576</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">50,412</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">3,830</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">46,410</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">127</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">45</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Interest payments</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">6,696</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">2,232</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">4,464</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Operating lease obligations</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">3,074</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">1,180</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">993</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">901</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;"> 89,931</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;"> 100,537</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;"> 47,597</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;"> 51,867</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;"> 1,028</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="9%"><font style="font-family: times new roman,times;"> 45</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
</table>
4228000
9151000
613000
0
0
0
613000
0
613000
15217000
2229000
75000
42982000
36416000
5487000
145200
842362
129962
84000
631949
142187
218370
182473
149000
1101000
915000
186000
120564334
140923324
126860553
151541073
3979470
5194827
2308727
4738388
8022
684534
5822000
50477000
51840000
75338000
0
14284000
10094000
9668000
1455000
1000
662000
36641770
7709746
20845387
8086637
1847500
1847500
0
0
-950000
35000000
11036
16595
50000000
125207938
156196347
125207938
156196347
103521404
0.0570
0.0518
27777000
-5875000
3000000
0.0639
0.0518
0.0446
57500000
1.37
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" width="1%"> </td>
<td align="right" valign="bottom" width="12%">OTHER</td>
<td align="left" valign="bottom" width="2%"> </td>
<td align="left" valign="bottom" width="1%"> </td>
<td align="left" valign="bottom" width="12%"> </td>
<td align="left" valign="bottom" width="2%"> </td>
<td align="left" valign="bottom" width="1%"> </td>
<td align="left" valign="bottom" width="12%"> </td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" valign="bottom" width="12%">BIOLOGICAL ASSETS</td>
<td align="left" valign="bottom" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" valign="bottom" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" valign="bottom" width="12%">CANNABIS ON PLANTS</td>
<td align="left" valign="bottom" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" valign="bottom" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" valign="bottom" width="12%">TOTAL</td>
<td align="left" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="12%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="12%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="12%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">
<p style="text-indent: -15pt; margin-left: 15pt;">Carrying amount, August 31, 2017</p>
</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%">$</td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%"> 6</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%">$</td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%"> 2,774</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%">$</td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%"> 2,780</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
</tr>
<tr>
<td>
<p style="text-indent: -15pt; margin-left: 15pt;"> </p>
</td>
<td valign="bottom" width="1%"> </td>
<td valign="bottom" width="12%"> </td>
<td valign="bottom" width="2%"> </td>
<td valign="bottom" width="1%"> </td>
<td valign="bottom" width="12%"> </td>
<td valign="bottom" width="2%"> </td>
<td valign="bottom" width="1%"> </td>
<td valign="bottom" width="12%"> </td>
<td valign="bottom" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">
<p style="text-indent: -15pt; margin-left: 15pt;">Add (less) net production costs</p>
</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%">593</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%">14,357</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%">14,950</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
</tr>
<tr>
<td align="left">
<p style="text-indent: -15pt; margin-left: 15pt;"> </p>
</td>
<td align="right" valign="bottom" width="1%"> </td>
<td align="right" valign="bottom" width="12%"> </td>
<td align="right" valign="bottom" width="2%"> </td>
<td align="right" valign="bottom" width="1%"> </td>
<td align="right" valign="bottom" width="12%"> </td>
<td align="right" valign="bottom" width="2%"> </td>
<td align="right" valign="bottom" width="1%"> </td>
<td align="right" valign="bottom" width="12%"> </td>
<td align="right" valign="bottom" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">
<p style="text-indent: -15pt; margin-left: 15pt;">Net change in fair value less costs to sell due to biological transformation</p>
</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%">-</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%">10,736</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%">10,736</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
</tr>
<tr>
<td>
<p style="text-indent: -15pt; margin-left: 15pt;"> </p>
</td>
<td valign="bottom" width="1%"> </td>
<td valign="bottom" width="12%"> </td>
<td valign="bottom" width="2%"> </td>
<td valign="bottom" width="1%"> </td>
<td valign="bottom" width="12%"> </td>
<td valign="bottom" width="2%"> </td>
<td valign="bottom" width="1%"> </td>
<td valign="bottom" width="12%"> </td>
<td valign="bottom" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">
<p style="text-indent: -15pt; margin-left: 15pt;">Transferred to inventory upon harvest</p>
</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="12%">-</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="12%">(8,608</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%">)</td>
<td align="left" style="border-bottom: #000000 1px
solid;" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="12%">(8,608</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%">)</td>
</tr>
<tr>
<td align="left">
<p style="text-indent: -15pt; margin-left: 15pt;"> </p>
</td>
<td align="right" valign="bottom" width="1%"> </td>
<td align="right" valign="bottom" width="12%"> </td>
<td align="right" valign="bottom" width="2%"> </td>
<td align="right" valign="bottom" width="1%"> </td>
<td align="right" valign="bottom" width="12%"> </td>
<td align="right" valign="bottom" width="2%"> </td>
<td align="right" valign="bottom" width="1%"> </td>
<td align="right" valign="bottom" width="12%"> </td>
<td align="right" valign="bottom" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">
<p style="text-indent: -15pt; margin-left: 15pt;">Carrying amount, August 31, 2018</p>
</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="12%"> 599</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="12%"> 19,259</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="12%"> 19,858</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
</tr>
<tr>
<td>
<p style="text-indent: -15pt; margin-left: 15pt;"> </p>
</td>
<td valign="bottom" width="1%"> </td>
<td valign="bottom" width="12%"> </td>
<td valign="bottom" width="2%"> </td>
<td valign="bottom" width="1%"> </td>
<td valign="bottom" width="12%"> </td>
<td valign="bottom" width="2%"> </td>
<td valign="bottom" width="1%"> </td>
<td valign="bottom" width="12%"> </td>
<td valign="bottom" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">
<p style="text-indent: -15pt; margin-left: 15pt;">Add (less) net production costs</p>
</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%">(596</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%">)</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%">37,534</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%">36,938</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
</tr>
<tr>
<td align="left">
<p style="text-indent: -15pt; margin-left: 15pt;"> </p>
</td>
<td align="right" valign="bottom" width="1%"> </td>
<td align="right" valign="bottom" width="12%"> </td>
<td align="right" valign="bottom" width="2%"> </td>
<td align="right" valign="bottom" width="1%"> </td>
<td align="right" valign="bottom" width="12%"> </td>
<td align="right" valign="bottom" width="2%"> </td>
<td align="right" valign="bottom" width="1%"> </td>
<td align="right" valign="bottom" width="12%"> </td>
<td align="right" valign="bottom" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">
<p style="text-indent: -15pt; margin-left: 15pt;">Net change in fair value less costs to sell due to biological transformation</p>
</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%">-</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%">(8,060</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%">)</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" valign="bottom" width="12%">(8,060</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%">)</td>
</tr>
<tr>
<td>
<p style="text-indent: -15pt; margin-left: 15pt;"> </p>
</td>
<td valign="bottom" width="1%"> </td>
<td valign="bottom" width="12%"> </td>
<td valign="bottom" width="2%"> </td>
<td valign="bottom" width="1%"> </td>
<td valign="bottom" width="12%"> </td>
<td valign="bottom" width="2%"> </td>
<td valign="bottom" width="1%"> </td>
<td valign="bottom" width="12%"> </td>
<td valign="bottom" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">
<p style="text-indent: -15pt; margin-left: 15pt;">Transferred to inventory upon harvest</p>
</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="12%">-</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="12%">(28,084</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%">)</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="12%">(28,084</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%">)</td>
</tr>
<tr>
<td align="left">
<p style="text-indent: -15pt; margin-left: 15pt;"> </p>
</td>
<td align="right" valign="bottom" width="1%"> </td>
<td align="right" valign="bottom" width="12%"> </td>
<td align="right" valign="bottom" width="2%"> </td>
<td align="right" valign="bottom" width="1%"> </td>
<td align="right" valign="bottom" width="12%"> </td>
<td align="right" valign="bottom" width="2%"> </td>
<td align="right" valign="bottom" width="1%"> </td>
<td align="right" valign="bottom" width="12%"> </td>
<td align="right" valign="bottom" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">
<p style="text-indent: -15pt; margin-left: 15pt;">Carrying amount, August 31,
2019</p>
</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="12%"> 3</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="12%"> 20,649</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" valign="bottom" width="12%"> 20,652</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
</tr>
</table>
437957
50000
20000
41000
5653000
3629000
22124000
-9504000
-1611000
-1611000
-38000
-38000
20513000
-9542000
-1626000
-1098000
-9542000
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="12%">AUGUST 31, 2019</td>
<td align="center" bgcolor="#87b5cf" width="2%"> </td>
<td align="center" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="12%"><font color="#ffffff">AUGUST 31, 2018</font></td>
<td align="left" bgcolor="#aeaaaa" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="center" bgcolor="#e1eaed" width="1%"> </td>
<td align="center" bgcolor="#e1eaed" width="12%"> </td>
<td align="center" bgcolor="#e1eaed" width="2%"> </td>
<td align="center" width="1%"> </td>
<td align="center" bgcolor="#d6d6d6" width="1%"> </td>
<td align="center" bgcolor="#d6d6d6" width="12%"><font color="#ffffff"> </font></td>
<td align="center" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Realized fair value amounts included in inventory sold</td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="12%"> (50,477</td>
<td align="left" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="12%"> (5,822</td>
<td align="left" bgcolor="#d6d6d6" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left">Increase (decrease) in fair value on growth of biological assets</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">75,338</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">51,840</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Adjustment to net realizable value</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="12%">(14,284</td>
<td align="left" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="12%">-</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Fair value adjustment to biological assets</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="12%"> 10,577</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="12%"> 46,018</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
</table>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font color="#8cbddc">SIGNIFICANT INPUTS &</font></td>
<td align="left" width="1%"> </td>
<td align="center" colspan="4" nowrap="nowrap">WEIGHTED AVERAGE INPUT</td>
<td align="center" width="2%" nowrap="nowrap"> </td>
<td align="center" width="1%" nowrap="nowrap"> </td>
<td align="center" width="11%" nowrap="nowrap"> </td>
<td align="center" width="2%" nowrap="nowrap"> </td>
<td align="center" width="1%" nowrap="nowrap"> </td>
<td align="center" colspan="4" nowrap="nowrap">EFFECT ON FAIR VALUE</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left"><font color="#8cbddc">ASSUMPTIONS</font></td>
<td align="left" style="border-bottom: #000000 2px solid;" width="1%"> </td>
<td align="center" style="border-bottom: #000000 2px solid;" width="11%" nowrap="nowrap">AUG. 31, 2019</td>
<td align="center" width="2%" nowrap="nowrap"> </td>
<td align="center" style="border-bottom: #000000 2px solid;" width="1%" nowrap="nowrap"> </td>
<td align="center" style="border-bottom: #000000 2px solid;" width="11%" nowrap="nowrap">AUG. 31, 2018</td>
<td align="center" width="2%" nowrap="nowrap"> </td>
<td align="center" style="border-bottom: #000000 2px solid;" width="1%" nowrap="nowrap"> </td>
<td align="center" style="border-bottom: #000000 2px solid;" width="11%" nowrap="nowrap">SENSITIVITY</td>
<td align="center" width="2%" nowrap="nowrap"> </td>
<td align="center" style="border-bottom: #000000 2px solid;" width="1%" nowrap="nowrap"> </td>
<td align="center" style="border-bottom: #000000 2px solid;" width="11%" nowrap="nowrap">AUG. 31, 2019</td>
<td align="center" width="2%" nowrap="nowrap"> </td>
<td align="center" style="border-bottom: #000000 2px solid;" width="1%" nowrap="nowrap"> </td>
<td align="center" style="border-bottom: #000000 2px solid;" width="11%" nowrap="nowrap">AUG. 31, 2018</td>
<td align="left" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="11%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="11%"> </td>
<td align="right" width="2%"> </td>
<td align="center" width="1%"> </td>
<td align="center" width="11%"> </td>
<td align="center" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="left" width="11%"> </td>
<td align="left" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="left" width="11%"> </td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee" valign="bottom">Average net selling price per gram</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%">$</td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%"> 5.65</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%">$</td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%"> 5.65</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%">Increase or decrease by $1.00 per gram</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%">$</td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%"> 3,657</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%">$</td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%"> 4,275</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
</tr>
<tr>
<td align="left" valign="bottom"> </td>
<td align="left" valign="bottom" width="1%"> </td>
<td align="left" valign="bottom" width="11%"> </td>
<td align="left" valign="bottom" width="2%"> </td>
<td align="left" valign="bottom" width="1%"> </td>
<td align="left" valign="bottom" width="11%"> </td>
<td align="left" valign="bottom" width="2%"> </td>
<td align="right" valign="bottom" width="1%"> </td>
<td align="right" valign="bottom" width="11%"> </td>
<td align="right" valign="bottom" width="2%"> </td>
<td align="left" valign="bottom" width="1%"> </td>
<td align="left" valign="bottom" width="11%"> </td>
<td align="left" valign="bottom" width="2%"> </td>
<td align="left" valign="bottom" width="1%"> </td>
<td align="left" valign="bottom" width="11%"> </td>
<td align="left" valign="bottom" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee" valign="bottom">Average yield per plant</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%">151 grams</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%">149 grams</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%">Increase or decrease by 10 grams</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%">$</td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%"> 1,367</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="1%">$</td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" valign="bottom" width="11%"> 1,292</td>
<td align="left" bgcolor="#eeeeee" valign="bottom" width="2%"> </td>
</tr>
</table>
793000
11632000
-43000
20513000
-9585000
-1945000
-1098000
0.184
-0.067
<div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="3">8. INVENTORIES</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The Company’s inventories are comprised of the following balances as of August 31, 2019 and August 31, 2018:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" colspan="10"><font size="2"><font color="#ffffff"> </font> <font color="#ffffff">  AUGUST 31, 2019       </font></font></td>
<td align="left" width="2%"><font color="#ffffff" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#c0d5e2" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#c0d5e2" valign="bottom" width="12%"><font color="#ffffff" size="2">QUANTITY</font></td>
<td align="left" bgcolor="#c0d5e2" valign="bottom" width="2%"><font color="#ffffff" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#c0d5e2" valign="bottom" width="1%"><font color="#ffffff" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#c0d5e2" valign="bottom" width="12%"><font color="#ffffff" size="2">CAPITALIZED COST</font></td>
<td align="left" bgcolor="#c0d5e2" valign="bottom" width="2%"><font color="#ffffff" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#c0d5e2" valign="bottom" width="1%"><font color="#ffffff" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#c0d5e2" valign="bottom" width="12%"><font color="#ffffff" size="2">FAIR VALUE ADJUSTMENT</font></td>
<td align="left" bgcolor="#c0d5e2" valign="bottom" width="2%"><font color="#ffffff" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#c0d5e2" valign="bottom" width="1%"><font color="#ffffff" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#c0d5e2" valign="bottom" width="12%"><font color="#ffffff" size="2">CARRYING VALUE</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Plants in drying stage</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">13,985 plants</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2"> 1,945</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2"> 4,256</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2"> 6,201</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Dry cannabis</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">   Available for packaging</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">5,506 kg</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">5,261</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">12,718</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">17,979</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">   Packaged inventory</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">1,557 kg</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">4,205</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">2,549</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">6,754</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Flower and trim available for extraction</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">4,939 kg</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">4,433</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">12,193</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">16,626</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Concentrated extract</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">790 kg</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">15,393</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">21,573</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">36,966</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Cannabis oil</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">   Bulk formulated oil</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">3,149 L</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">754</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">1,121</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">1,875</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">   Bottled and packaged oil</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">880 L</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">728</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">425</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">1,153</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Packaging and supplies</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">5,590</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">-</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2">5,590</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2"> 38,309</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2"> 54,835</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaeb" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaeb" valign="bottom" width="12%"><font size="2"> 93,144</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
</table>
<br style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" />
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#808080" width="1%"><font color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#808080" colspan="10"><font color="#ffffff" size="2">AUGUST 31, 2018</font></td>
<td align="left" width="2%"><font color="#ffffff" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font color="#ffffff" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="bottom" width="12%"><font color="#ffffff" size="2">QUANTITY</font></td>
<td align="left" bgcolor="#aeaaaa" valign="bottom" width="2%"><font color="#ffffff" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="bottom" width="1%"><font color="#ffffff" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="bottom" width="12%"><font color="#ffffff" size="2">CAPITALIZED COST</font></td>
<td align="left" bgcolor="#aeaaaa" valign="bottom" width="2%"><font color="#ffffff" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="bottom" width="1%"><font color="#ffffff" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="bottom" width="12%"><font color="#ffffff" size="2">FAIR VALUE ADJUSTMENT</font></td>
<td align="left" bgcolor="#aeaaaa" valign="bottom" width="2%"><font color="#ffffff" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="bottom" width="1%"><font color="#ffffff" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="bottom" width="12%"><font color="#ffffff" size="2">CARRYING VALUE</font></td>
<td align="left" valign="bottom" width="2%"><font color="#ffffff" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Plants in drying stage</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">8,142 plants</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2"> 873</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2"> 4,985</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2"> 5,858</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Dry cannabis</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">   Available for packaging</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">5,032 kg</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">4,152</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">16,384</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">20,536</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">   Packaged inventory</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">71 kg</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">90</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">309</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">399</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Flower and trim available for extraction</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">1,918 kg</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">1,570</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">10,327</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">11,897</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Concentrated extract</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">40 kg</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">529</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">1,922</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">2,451</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Cannabis oil</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">   Bulk formulated oil</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">2,632 L</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">600</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">2,116</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">2,716</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">   Bottled and packaged oil</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">168 L</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">88</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">159</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">247</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Packaging and supplies</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">865</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">-</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2">865</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2"> </font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2"> 8,767</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2"> 36,202</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" valign="bottom" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" valign="bottom" width="12%"><font size="2"> 44,969</font></td>
<td align="left" valign="bottom" width="2%"><font size="2"> </font></td>
</tr>
</table>
<br style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" />
<div align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Flower and trim available for extraction are converted into concentrated extract, which can then be used for oil formulation (combining with a carrier oil) or other products such as edibles, and beverage and vaporizable products.</font></div>
<div align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The amount of inventory expensed in cost of sales for the year ended August 31, 2019 was $35,224 (August 31, 2018 - $4,658).</font></div>
</div>
0.174
-0.067
-0.013
-0.013
0.170
-0.068
0.162
-0.068
<table style="width: 100%; border-collapse: collapse; font-size: 10pt; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font style="font-family: times new roman,times;" color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" colspan="10"><font style="font-family: times new roman,times;"><font color="#ffffff"> </font> <font color="#ffffff">  AUGUST 31, 2019       </font></font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" color="#ffffff"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#c0d5e2" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#c0d5e2" valign="bottom" width="12%"><font style="font-family: times new roman,times;" color="#ffffff">QUANTITY</font></td>
<td align="left" bgcolor="#c0d5e2" valign="bottom" width="2%"><font style="font-family: times new roman,times;" color="#ffffff"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#c0d5e2" valign="bottom" width="1%"><font style="font-family: times new roman,times;" color="#ffffff"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#c0d5e2" valign="bottom" width="12%"><font style="font-family: times new roman,times;" color="#ffffff">CAPITALIZED COST</font></td>
<td align="left" bgcolor="#c0d5e2" valign="bottom" width="2%"><font style="font-family: times new roman,times;" color="#ffffff"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#c0d5e2" valign="bottom" width="1%"><font style="font-family: times new roman,times;" color="#ffffff"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#c0d5e2" valign="bottom" width="12%"><font style="font-family: times new roman,times;" color="#ffffff">FAIR VALUE ADJUSTMENT</font></td>
<td align="left" bgcolor="#c0d5e2" valign="bottom" width="2%"><font style="font-family: times new roman,times;" color="#ffffff"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#c0d5e2" valign="bottom" width="1%"><font style="font-family: times new roman,times;" color="#ffffff"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#c0d5e2" valign="bottom" width="12%"><font style="font-family: times new roman,times;" color="#ffffff">CARRYING VALUE</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Plants in drying stage</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">13,985 plants</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> 1,945</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> 4,256</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> 6,201</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Dry cannabis</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">   Available for packaging</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">5,506 kg</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">5,261</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">12,718</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">17,979</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">   Packaged inventory</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">1,557 kg</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">4,205</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">2,549</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">6,754</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Flower and trim available for extraction</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">4,939 kg</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">4,433</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">12,193</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">16,626</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Concentrated extract</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">790 kg</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">15,393</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">21,573</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">36,966</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Cannabis oil</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">   Bulk formulated oil</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">3,149 L</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">754</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">1,121</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">1,875</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">   Bottled and packaged oil</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">880 L</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">728</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">425</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">1,153</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Packaging and supplies</font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">5,590</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;">5,590</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#e1eaeb" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> 38,309</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> 54,835</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaeb" valign="bottom" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaeb" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> 93,144</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
</table>
<div><font style="font-family: times new roman,times;"> </font></div>
<table style="width: 100%; border-collapse: collapse; font-size: 10pt; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#808080" width="1%"><font style="font-family: times new roman,times;" color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#808080" colspan="10"><font style="font-family: times new roman,times;" color="#ffffff">AUGUST 31, 2018</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" color="#ffffff"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font style="font-family: times new roman,times;" color="#ffffff"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="bottom" width="12%"><font style="font-family: times new roman,times;" color="#ffffff">QUANTITY</font></td>
<td align="left" bgcolor="#aeaaaa" valign="bottom" width="2%"><font style="font-family: times new roman,times;" color="#ffffff"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="bottom" width="1%"><font style="font-family: times new roman,times;" color="#ffffff"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="bottom" width="12%"><font style="font-family: times new roman,times;" color="#ffffff">CAPITALIZED COST</font></td>
<td align="left" bgcolor="#aeaaaa" valign="bottom" width="2%"><font style="font-family: times new roman,times;" color="#ffffff"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="bottom" width="1%"><font style="font-family: times new roman,times;" color="#ffffff"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="bottom" width="12%"><font style="font-family: times new roman,times;" color="#ffffff">FAIR VALUE ADJUSTMENT</font></td>
<td align="left" bgcolor="#aeaaaa" valign="bottom" width="2%"><font style="font-family: times new roman,times;" color="#ffffff"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="bottom" width="1%"><font style="font-family: times new roman,times;" color="#ffffff"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="bottom" width="12%"><font style="font-family: times new roman,times;" color="#ffffff">CARRYING VALUE</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;" color="#ffffff"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Plants in drying stage</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">8,142 plants</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> 873</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> 4,985</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> 5,858</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Dry cannabis</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">   Available for packaging</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">5,032 kg</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">4,152</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">16,384</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">20,536</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">   Packaged inventory</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">71 kg</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">90</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">309</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">399</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Flower and trim available for extraction</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">1,918 kg</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">1,570</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">10,327</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">11,897</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Concentrated extract</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">40 kg</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">529</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">1,922</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">2,451</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Cannabis oil</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">   Bulk formulated oil</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">2,632 L</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">600</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">2,116</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">2,716</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">   Bottled and packaged oil</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">168 L</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">88</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">159</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">247</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Packaging and supplies</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">865</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;">865</font></td>
<td align="left" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> 8,767</font></td>
<td align="left" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> 36,202</font></td>
<td align="left" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" valign="bottom" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" bgcolor="#d6d6d6" valign="bottom" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" bgcolor="#d6d6d6" valign="bottom" width="12%"><font style="font-family: times new roman,times;"> 44,969</font></td>
</tr>
</table>
0
11108000
3000000
4612000
0
3496000
0
0
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="3">9. PROPERTY, PLANT AND EQUIPMENT</font></p>
<div style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">
<table style="width: 100%; border-collapse: collapse; font-size: 10pt; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="center" width="9%"><font size="2"> </font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" width="9%"><font size="2"> </font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" width="9%"><font size="2"> </font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" width="9%"><font size="2">GROWING &</font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" width="9%"><font size="2"> </font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="center" width="9%"><font size="2"> </font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" width="9%"><font size="2"> </font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" width="9%"><font size="2">CONSTRUCTION</font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" width="9%"><font size="2">PROCESSING  </font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" width="9%"><font size="2"> </font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="9%"><font size="2">LAND</font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="9%"><font size="2">BUILDINGS</font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="9%"><font size="2">IN PROCESS</font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="9%"><font size="2">EQUIPMENT</font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="9%"><font size="2">OTHER</font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="9%"><font size="2">TOTAL</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left"><font size="2"> </font></td>
<td align="left"><font size="2"> </font></td>
<td align="left"><font size="2"> </font></td>
<td align="left"><font size="2"> </font></td>
<td align="left"><font size="2"> </font></td>
<td align="left"><font size="2"> </font></td>
<td align="left"><font size="2"> </font></td>
<td align="left"><font size="2"> </font></td>
<td align="left"><font size="2"> </font></td>
<td align="left"><font size="2"> </font></td>
<td align="left"><font size="2"> </font></td>
<td align="left"><font size="2"> </font></td>
<td align="left"><font size="2"> </font></td>
<td align="left"><font size="2"> </font></td>
<td align="left"><font size="2"> </font></td>
<td align="left"><font size="2"> </font></td>
<td align="left"><font size="2"> </font></td>
<td align="left"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Cost</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Balance, August 31, 2017</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> 1,440</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> 14,150</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> 22,200</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> 7,908</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> 2,304</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> 48,002</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">   Additions</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">765</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">15,536</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">34,851</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">4,986</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">791</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">56,929</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">   Construction completed</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">17,415</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">(45,058</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">27,609</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">34</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">   Disposals</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">(10</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">(42</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">(52</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">   Included in assets for sale</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">(165</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">(165</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Balance, August 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 2,205</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 47,101</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 11,993</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 40,493</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 2,922</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 104,714</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Accumulated depreciation</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Balance, August 31, 2017</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> (816</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> (1,114</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> (726</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> (2,656</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">   Depreciation</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">(1,181</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">(1,844</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">(479</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">(3,504</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">   Disposals</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">2</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">6</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">8</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">   Included in assets for sale</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">77</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">77</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Balance, August 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> (1,997</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> (2,956</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> (1,122</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> (6,075</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Cost</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Balance, August 31, 2018</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> 2,205</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> 47,101</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> 11,993</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> 40,493</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> 2,922</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> 104,714</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">   Additions</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">6</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">15,753</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">105,512</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">5,554</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">3,366</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">130,191</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">   Construction completed</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">8,042</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">(51,990</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">42,698</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">1,250</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">   Disposals</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">(122</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">(201</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">(323</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">   Impairment loss</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">(613</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">(613</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Balance, August 31, 2019</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 2,211</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 70,774</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 65,515</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 87,931</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 7,538</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 233,969</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Accumulated depreciation</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Balance, August 31, 2018</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> (1,997</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> (2,956</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> (1,122</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2"> (6,075</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">   Depreciation</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">(2,245</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">(5,679</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">(946</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font size="2">(8,870</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">   Disposals</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">5</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">17</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2">22</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Balance, August 31, 2019</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> (4,237</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> (8,618</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> (2,068</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> (14,923</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Net book value</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="9%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">August 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 2,205</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 45,104</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 11,993</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 37,537</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 1,800</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 98,639</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="9%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">August 31, 2019</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 2,211</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 66,537</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 65,515</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 79,313</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 5,470</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font size="2"> 219,046</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
</table>
</div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Most of the additions during the year-ended August 31, 2019 were related to the Company’s expansion located at 35 English Drive, while the remainder were related to purchases of packaging equipment and IT system upgrades to facilitate recreational cannabis sales.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">During the year ended August 31, 2019 certain growing and processing equipment was identified as being impaired either as a result of it being obsolete or inefficient and costly for production use. This equipment was impaired to a carrying value of $nil.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The following table reconciles additions of property, plant and equipment per the above table to the purchases of property, plant and equipment per the statements of cash flows:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left" width="70%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="11%"><font color="#ffffff" size="2">AUGUST 31, 2019</font></td>
<td align="center" bgcolor="#87b5cf" width="2%"><font color="#ffffff" size="2"> </font></td>
<td align="center" width="2%"><font color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="11%"><font color="#ffffff" size="2">AUGUST 31, 2018</font></td>
<td align="left" bgcolor="#aeaaaa" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaed" width="11%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Additions</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font size="2"> 130,191</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font size="2">56,929</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Acquisitions related to discontinued operations</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font size="2">(32</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Net change in accounts payable and accrued liabilities related to purchases of PP&E</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%"><font size="2">(21,427</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2">)</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%"><font size="2">(462</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Purchase of property, plant and equipment</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"><font size="2"> 108,764</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%"><font size="2">56,435</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
</table>
<div>
<table style="width: 100%; border-collapse: collapse; font-size: 10pt; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="9%"><font style="font-family: times new roman,times;">GROWING &</font></td>
<td align="center" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="9%"><font style="font-family: times new roman,times;">CONSTRUCTION</font></td>
<td align="center" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="9%"><font style="font-family: times new roman,times;">PROCESSING  </font></td>
<td align="center" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="9%"><font style="font-family: times new roman,times;">LAND</font></td>
<td align="center" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="9%"><font style="font-family: times new roman,times;">BUILDINGS</font></td>
<td align="center" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="9%"><font style="font-family: times new roman,times;">IN PROCESS</font></td>
<td align="center" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="9%"><font style="font-family: times new roman,times;">EQUIPMENT</font></td>
<td align="center" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="9%"><font style="font-family: times new roman,times;">OTHER</font></td>
<td align="center" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="9%"><font style="font-family: times new roman,times;">TOTAL</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">Cost</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">Balance, August 31, 2017</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 1,440</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 14,150</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 22,200</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 7,908</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 2,304</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 48,002</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">   Additions</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">765</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">15,536</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">34,851</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">4,986</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">791</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">56,929</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">   Construction completed</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">17,415</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(45,058</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">27,609</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">34</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">   Disposals</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(10</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(42</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(52</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">   Included in assets for sale</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(165</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(165</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">Balance, August 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 2,205</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 47,101</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 11,993</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 40,493</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 2,922</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 104,714</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">Accumulated depreciation</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">Balance, August 31, 2017</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> (816</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> (1,114</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> (726</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> (2,656</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">   Depreciation</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(1,181</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(1,844</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(479</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(3,504</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">   Disposals</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">2</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">6</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">8</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">   Included in assets for sale</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">77</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">77</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">Balance, August 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> (1,997</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> (2,956</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> (1,122</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> (6,075</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">Cost</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">Balance, August 31, 2018</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 2,205</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 47,101</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 11,993</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 40,493</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 2,922</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 104,714</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">   Additions</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">6</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">15,753</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">105,512</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">5,554</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">3,366</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">130,191</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">   Construction completed</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">8,042</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(51,990</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">42,698</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">1,250</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">   Disposals</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(122</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(201</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(323</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">   Impairment loss</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(613</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(613</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">Balance, August 31, 2019</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 2,211</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 70,774</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 65,515</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 87,931</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 7,538</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 233,969</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">Accumulated depreciation</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">Balance, August 31, 2018</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> (1,997</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> (2,956</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> (1,122</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> (6,075</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">   Depreciation</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(2,245</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(5,679</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(946</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">(8,870</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">   Disposals</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">5</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">17</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;">22</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">Balance, August 31, 2019</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> (4,237</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> (8,618</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> (2,068</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> (14,923</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">Net book value</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">August 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 2,205</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 45,104</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 11,993</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 37,537</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 1,800</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 98,639</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="9%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">August 31, 2019</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 2,211</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 66,537</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 65,515</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 79,313</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 5,470</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="9%"><font style="font-family: times new roman,times;"> 219,046</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
</table>
</div>
133000
133000
13408000
3408000
5000000
5000000
322000
160000
73000
89000
374000
0
374000
0
-1261000
-50000
-734000
-477000
-37000
-22000
-15000
0
<div>
<p align="justify" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="3">12. UNSECURED CONVERTIBLE DEBENTURES</font></p>
<p align="justify" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">On January 31, 2018, $115,000 of unsecured convertible debentures were issued. Each convertible debenture had a maturity date of January 31, 2020 (the “maturity date”) and bore interest from the date of closing at 6.00% per annum, payable semi-annually on June 30 and December 31 of each year commencing on June 30, 2018. Each convertible debenture was convertible, at the option of the holder, into common shares of the Company (“common shares”) at any time prior to the close of business on the earlier of: (i) the business day immediately preceding the maturity date, and (ii) if subject to redemption in the event of a change of control, the business day immediately preceding the payment date, at a conversion price of $5.42 per common share (the “conversion price”), subject to adjustment in certain events and to forced conversion by the Company in accordance with the indenture governing the convertible debentures. The Company may force conversion of the aggregate principal amount of the then outstanding convertible debentures at the conversion price on not less than 30 days’ notice should the daily volume weighted average trading price (“VWAP”) of the common shares be greater than $7.05 for any 10 consecutive trading days. The Company is also required to redeem the debentures at the holder’s option in the event of a change in control at a price equal to 104% of the principal amount plus accrued and unpaid interest.</font></p>
<p align="justify" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The Company had allocated the gross proceeds from issuance between the estimated fair value of the debt and equity components using the residual method. The Company used an effective annualized discount rate of 15.3% to arrive at the valuation of the debt component before issue costs at $98,095 and the equity component at $16,905. The effective interest rate on the debt component, inclusive of the equity discount and issue costs, was 18.0% .</font></p>
<p align="justify" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">On February 27, 2019, the Company elected to exercise its right under the indenture governing the convertible unsecured debentures to convert all of the principal amount outstanding of the remaining debentures on April 1, 2019 into common shares of the Company on the basis of the daily VWAP of the common shares having exceeded $7.05 for 10 consecutive trading days. As of close of markets on February 26, 2019, the VWAP of the common shares for 10 consecutive trading days exceeded $7.05. The conversion was completed on April 1, 2019. It should be noted that although the Company exercised its right to force conversion, holders of the debentures still had the right to convert their debentures at their discretion prior to April 1, 2019 and therefore approximately $37,738 (face value) of debentures were converted into 6,962,725 common shares during the month of March 2019. The Company did not issue fractional common shares on the conversion. Instead, the Company, in lieu of delivering a certificate representing such fractional interest, made a cash payment to the holder of an amount equal to the fractional interest in accordance with the indenture. As of April 1, 2019, no further liability or obligation exists with respect to the convertible unsecured debentures.</font></p>
<p align="justify" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The debt component was measured at amortized cost. The conversion of debentures to common shares represents a non-cash financing activity, which has been excluded from the Company’s statement of cash flows as these transactions do not provide or use any cash.</font></p>
<p align="justify" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The balance of the debt component as at August 31, 2019 and August 31, 2018 consists of the following:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#87b5cf" width="1%"><font color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#87b5cf" width="12%"><font color="#ffffff" size="2">AUGUST 31, 2019</font></td>
<td align="center" bgcolor="#87b5cf" width="2%"><font color="#ffffff" size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#aeaaaa" width="1%"><font color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#aeaaaa" width="12%"><font color="#ffffff" size="2">AUGUST 31, 2018</font></td>
<td align="left" bgcolor="#aeaaaa" width="2%"><font color="#ffffff" size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaed" width="12%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" width="12%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Debentures - maturing January 31, 2020 bearing interest at an interest rate of 6.00% - face value</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2"> 115,000</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2"> 115,000</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="12%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="12%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Less: conversion of debentures, cumulative (Note 13(iii))</font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed" width="12%"><font size="2">(115,000</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2">)</font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6" width="12%"><font size="2">(2,018</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Debentures - outstanding face value</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2">112,982</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Less: allocation to reserve for options and warrants for debenture discount</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2">(16,905</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2">)</font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2">(16,905</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Amortization of debenture discount</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2">8,030</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2">4,324</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Less: issue costs</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2">(7,155</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2">)</font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2">(7,155</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Issue costs allocated to equity</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2">1,061</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2">1,061</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Amortization of issue costs</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2">2,899</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2">1,559</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Unamortized discount and issue costs transferred to equity upon conversion of debentures</font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed" width="12%"><font size="2">12,070</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6" width="12%"><font size="2">-</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Debentures - carrying value</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2">95,866</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Less: current portion of debentures</font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed" width="12%"><font size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6" width="12%"><font size="2">-</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Long-term portion</font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#e1eaed" width="12%"><font size="2"> -</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#d6d6d6" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#d6d6d6" width="12%"><font size="2"> 95,866</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
</table>
</div>
5033000
14894000
0
6696000
2232000
4464000
0
0
0
3074000
1180000
993000
901000
0
89931000
100537000
47597000
51867000
1028000
45000
<div>
<p align="justify" style="color: #000000; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 13.33px; font-style: normal; font-weight: 400; word-spacing: 0px; white-space: normal; orphans: 2; widows: 2; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p>
<table style="border-color: black; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; font-family: 'times new roman'; font-size: 10pt; word-spacing: 0px; border-collapse: collapse; orphans: 2; widows: 2; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" width="1%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#87b5cf"><font color="#ffffff"> </font></td>
<td align="center" width="12%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#87b5cf"><font color="#ffffff">AUGUST 31, 2019</font></td>
<td align="center" width="2%" bgcolor="#87b5cf"><font color="#ffffff"> </font></td>
<td align="center" width="1%"> </td>
<td align="center" width="1%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#aeaaaa"><font color="#ffffff"> </font></td>
<td align="center" width="12%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#aeaaaa"><font color="#ffffff">AUGUST 31, 2018</font></td>
<td align="left" width="2%" bgcolor="#aeaaaa"><font color="#ffffff"> </font></td>
</tr>
<tr>
<td align="left"> </td>
<td align="center" width="1%" bgcolor="#e1eaed"> </td>
<td align="center" width="12%" bgcolor="#e1eaed"> </td>
<td align="center" width="2%" bgcolor="#e1eaed"> </td>
<td align="center" width="1%"> </td>
<td align="center" width="1%" bgcolor="#d6d6d6"> </td>
<td align="center" width="12%" bgcolor="#d6d6d6"> </td>
<td align="center" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Debentures - maturing January 31, 2020 bearing interest at an interest rate of 6.00% - face value</td>
<td align="left" width="1%" bgcolor="#e1eaed">$</td>
<td align="right" width="12%" bgcolor="#e1eaed"> 115,000</td>
<td align="left" width="2%" bgcolor="#e1eaed"> </td>
<td align="left" width="1%"> </td>
<td align="left" width="1%" bgcolor="#d6d6d6">$</td>
<td align="right" width="12%" bgcolor="#d6d6d6"> 115,000</td>
<td align="left" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="left" width="1%" bgcolor="#e1eaed"> </td>
<td align="left" width="12%" bgcolor="#e1eaed"> </td>
<td align="left" width="2%" bgcolor="#e1eaed"> </td>
<td align="left" width="1%"> </td>
<td align="left" width="1%" bgcolor="#d6d6d6"> </td>
<td align="left" width="12%" bgcolor="#d6d6d6"> </td>
<td align="left" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Less: conversion of debentures, cumulative (Note 13(iii))</td>
<td align="left" width="1%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed">(115,000</td>
<td align="left" width="2%" bgcolor="#e1eaed">)</td>
<td align="left" width="1%"> </td>
<td align="left" width="1%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6">(2,018</td>
<td align="left" width="2%" bgcolor="#d6d6d6">)</td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" bgcolor="#e1eaed"> </td>
<td align="right" width="2%" bgcolor="#e1eaed"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="1%" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" bgcolor="#d6d6d6"> </td>
<td align="right" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Debentures - outstanding face value</td>
<td align="left" width="1%" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" bgcolor="#e1eaed">-</td>
<td align="left" width="2%" bgcolor="#e1eaed"> </td>
<td align="left" width="1%"> </td>
<td align="left" width="1%" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" bgcolor="#d6d6d6">112,982</td>
<td align="left" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" bgcolor="#e1eaed"> </td>
<td align="right" width="2%" bgcolor="#e1eaed"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="1%" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" bgcolor="#d6d6d6"> </td>
<td align="right" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Less: allocation to reserve for options and warrants for debenture discount</td>
<td align="left" width="1%" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" bgcolor="#e1eaed">(16,905</td>
<td align="left" width="2%" bgcolor="#e1eaed">)</td>
<td align="left" width="1%"> </td>
<td align="left" width="1%" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" bgcolor="#d6d6d6">(16,905</td>
<td align="left" width="2%" bgcolor="#d6d6d6">)</td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" bgcolor="#e1eaed"> </td>
<td align="right" width="2%" bgcolor="#e1eaed"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="1%" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" bgcolor="#d6d6d6"> </td>
<td align="right" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Amortization of debenture discount</td>
<td align="left" width="1%" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" bgcolor="#e1eaed">8,030</td>
<td align="left" width="2%" bgcolor="#e1eaed"> </td>
<td align="left" width="1%"> </td>
<td align="left" width="1%" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" bgcolor="#d6d6d6">4,324</td>
<td align="left" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" bgcolor="#e1eaed"> </td>
<td
align="right" width="2%" bgcolor="#e1eaed"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="1%" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" bgcolor="#d6d6d6"> </td>
<td align="right" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Less: issue costs</td>
<td align="left" width="1%" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" bgcolor="#e1eaed">(7,155</td>
<td align="left" width="2%" bgcolor="#e1eaed">)</td>
<td align="left" width="1%"> </td>
<td align="left" width="1%" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" bgcolor="#d6d6d6">(7,155</td>
<td align="left" width="2%" bgcolor="#d6d6d6">)</td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" bgcolor="#e1eaed"> </td>
<td align="right" width="2%" bgcolor="#e1eaed"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="1%" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" bgcolor="#d6d6d6"> </td>
<td align="right" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Issue costs allocated to equity</td>
<td align="left" width="1%" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" bgcolor="#e1eaed">1,061</td>
<td align="left" width="2%" bgcolor="#e1eaed"> </td>
<td align="left" width="1%"> </td>
<td align="left" width="1%" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" bgcolor="#d6d6d6">1,061</td>
<td align="left" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" bgcolor="#e1eaed"> </td>
<td align="right" width="2%" bgcolor="#e1eaed"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="1%" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" bgcolor="#d6d6d6"> </td>
<td align="right" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Amortization of issue costs</td>
<td align="left" width="1%" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" bgcolor="#e1eaed">2,899</td>
<td align="left" width="2%" bgcolor="#e1eaed"> </td>
<td align="left" width="1%"> </td>
<td align="left" width="1%" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" bgcolor="#d6d6d6">1,559</td>
<td align="left" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" bgcolor="#e1eaed"> </td>
<td align="right" width="2%" bgcolor="#e1eaed"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="1%" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" bgcolor="#d6d6d6"> </td>
<td align="right" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Unamortized discount and issue costs transferred to equity upon conversion of debentures</td>
<td align="left" width="1%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed">12,070</td>
<td align="left" width="2%" bgcolor="#e1eaed"> </td>
<td align="left" width="1%"> </td>
<td align="left" width="1%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6">-</td>
<td align="left" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" bgcolor="#e1eaed"> </td>
<td align="right" width="2%" bgcolor="#e1eaed"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="1%" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" bgcolor="#d6d6d6"> </td>
<td align="right" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Debentures - carrying value</td>
<td align="left" width="1%" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" bgcolor="#e1eaed">-</td>
<td align="left" width="2%" bgcolor="#e1eaed"> </td>
<td align="left" width="1%"> </td>
<td align="left" width="1%" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" bgcolor="#d6d6d6">95,866</td>
<td align="left" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" bgcolor="#e1eaed"> </td>
<td align="right" width="2%" bgcolor="#e1eaed"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="1%" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" bgcolor="#d6d6d6"> </td>
<td align="right" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Less: current portion of debentures</td>
<td align="left" width="1%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#e1eaed">-</td>
<td align="left" width="2%" bgcolor="#e1eaed"> </td>
<td align="left" width="1%"> </td>
<td align="left" width="1%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" style="border-bottom-color: #000000; border-bottom-width: 1px; border-bottom-style: solid;" bgcolor="#d6d6d6">-</td>
<td align="left" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%" bgcolor="#e1eaed"> </td>
<td align="right" width="12%" bgcolor="#e1eaed"> </td>
<td align="right" width="2%" bgcolor="#e1eaed"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="1%" bgcolor="#d6d6d6"> </td>
<td align="right" width="12%" bgcolor="#d6d6d6"> </td>
<td align="right" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
<tr valign="top">
<td align="left">Long-term portion</td>
<td align="left" width="1%" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#e1eaed">$</td>
<td align="right" width="12%" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#e1eaed"> -</td>
<td align="left" width="2%" bgcolor="#e1eaed"> </td>
<td align="left" width="1%"> </td>
<td align="left" width="1%" style="border-bottom-color: #000000;
border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#d6d6d6">$</td>
<td align="right" width="12%" style="border-bottom-color: #000000; border-bottom-width: 3px; border-bottom-style: double;" bgcolor="#d6d6d6"> 95,866</td>
<td align="left" width="2%" bgcolor="#d6d6d6"> </td>
</tr>
</table>
</div>
-950000
0
-950000
0
539000
144000
144000
721000
1183000
-462000
4170000
6588000
-2418000
5954000
6693000
-739000
30976000
39257000
-8281000
57500000
48711000
8789000
3678000
3116000
562000
16905000
16905000
16905000
-319000
0
56929000
765000
15536000
34851000
4986000
791000
56929000
130191000
6000
15753000
105512000
5554000
3366000
130191000
0
0
0
-10000
-42000
-52000
0
0
0
2000
6000
8000
0
-122000
0
-201000
0
-323000
0
5000
0
17000
0
22000
4152000
16384000
5261000
12718000
90000
309000
4205000
2549000
1061000
1061000
0
17415000
-45058000
27609000
34000
0
0
8042000
-51990000
42698000
1250000
0
0
0
0
0
-165000
-165000
0
0
0
0
77000
77000
112982000
0
5049000
5049000
14788000
180000
14608000
0
1181000
0
1844000
479000
3504000
0
2245000
0
5679000
946000
8870000
2018000
115000000
16905000
16905000
865000
0
5590000
0
The probability of achieving the milestones was estimated to be 100% and the discount rate was estimated to be 20%. If the probabilities of achieving the milestones decreased by 10%, the estimated fair value of the contingent share consideration would decrease by approximately $160. If the discount rates increased or decreased by 5%, the estimated fair value of contingent consideration would decrease or increase, respectively, by approximately $46.
41000
50000
504801
2167864
4330837
7751700
372324
20845372
133800000
64476000
4658000
35224000
1144000
1307000
-163000
12003000
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" width="1%"> </td>
<td align="right" width="12%" nowrap="nowrap">ALPHA-CANNABIS</td>
<td align="left" width="2%" nowrap="nowrap"> </td>
<td align="left" width="1%" nowrap="nowrap"> </td>
<td align="right" width="12%" nowrap="nowrap">EVIANA HEALTH</td>
<td align="left" width="2%" nowrap="nowrap"> </td>
<td align="left" width="1%" nowrap="nowrap"> </td>
<td align="right" width="12%" nowrap="nowrap">HYASYNTH</td>
<td align="left" width="2%" nowrap="nowrap"> </td>
<td align="left" width="1%" nowrap="nowrap"> </td>
<td align="left" width="12%" nowrap="nowrap"> </td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" width="1%"> </td>
<td align="right" width="12%" nowrap="nowrap">PHARMA GMBH</td>
<td align="left" width="2%" nowrap="nowrap"> </td>
<td align="left" width="1%" nowrap="nowrap"> </td>
<td align="right" width="12%" nowrap="nowrap">CORPORATION</td>
<td align="left" width="2%" nowrap="nowrap"> </td>
<td align="left" width="1%" nowrap="nowrap"> </td>
<td align="right" width="12%" nowrap="nowrap">BIOLOGICALS INC.</td>
<td align="left" width="2%" nowrap="nowrap"> </td>
<td align="left" width="1%" nowrap="nowrap"> </td>
<td align="left" width="12%" nowrap="nowrap"> </td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" width="12%" nowrap="nowrap">(A)</td>
<td align="left" width="2%" nowrap="nowrap"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%" nowrap="nowrap"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" width="12%" nowrap="nowrap">(B)</td>
<td align="left" width="2%" nowrap="nowrap"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%" nowrap="nowrap"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" width="12%" nowrap="nowrap">(C)</td>
<td align="left" width="2%" nowrap="nowrap"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%" nowrap="nowrap"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" width="12%" nowrap="nowrap">TOTAL</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Participating share <sup>(1)</sup></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="12%">25.0%</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="12%">19.9%</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="12%">43.4%</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="12%"> </td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Balance, September 1, 2018</td>
<td align="left" width="1%">$</td>
<td align="right" width="12%"> -</td>
<td align="left" width="2%"> </td>
<td align="left" width="1%">$</td>
<td align="right" width="12%"> -</td>
<td align="left" width="2%"> </td>
<td align="left" width="1%">$</td>
<td align="right" width="12%"> -</td>
<td align="left" width="2%"> </td>
<td align="left" width="1%">$</td>
<td align="right" width="12%"> -</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">   Additions</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="12%">3,408</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="12%">5,000</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="12%">5,000</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="12%">13,408</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">   Transaction costs</td>
<td align="left" width="1%"> </td>
<td align="right" width="12%">160</td>
<td align="left" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="right" width="12%">73</td>
<td align="left" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="right" width="12%">89</td>
<td align="left" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="right" width="12%">322</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">   Distributions</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="12%">-</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="12%">(374</td>
<td align="left" bgcolor="#eeeeee" width="2%">)</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="12%">-</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="12%">(374</td>
<td align="left" bgcolor="#eeeeee" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left">   Share of net income (loss)</td>
<td align="left" width="1%"> </td>
<td align="right" width="12%">(50</td>
<td align="left" width="2%">)</td>
<td align="left" width="1%"> </td>
<td align="right" width="12%">(734</td>
<td align="left" width="2%">)</td>
<td align="left" width="1%"> </td>
<td align="right"
width="12%">(477</td>
<td align="left" width="2%">)</td>
<td align="left" width="1%"> </td>
<td align="right" width="12%">(1,261</td>
<td align="left" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">   Impairment loss</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="12%">-</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="12%">(950</td>
<td align="left" bgcolor="#eeeeee" width="2%">)</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="12%">-</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="12%">(950</td>
<td align="left" bgcolor="#eeeeee" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left">   Foreign currency translation gain (loss)</td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" width="12%">(22</td>
<td align="left" width="2%">)</td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" width="12%">(15</td>
<td align="left" width="2%">)</td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" width="12%">-</td>
<td align="left" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" width="12%">(37</td>
<td align="left" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Balance, August 31, 2019 <sup>(2)</sup></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="12%"> 3,496</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="12%"> 3,000</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="12%"> 4,612</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="12%"> 11,108</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">Note 1: % Interest includes the potential ownership interest that could result from the conversion of debentures and exercise of warrants</p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; font-variant-ligatures: normal; font-variant-caps: normal;">Note 2: OHI utilizes the most recently issued quarterly financial statements of its associates in its results with a two months lag since the Company does not have the same reporting date as its associates (for example, for the period ended August 31, OHI utilizes its associates’ June 30 results)</p>
837000
-837000
-2329000
2332000
-4661000
-43000
-43000
182473
0.01
1559000
2899000
4324000
8030000
7155000
756000
7155000
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="center" width="12%" nowrap="nowrap"><font size="2">EVIANA HEALTH</font></td>
<td align="center" width="2%" nowrap="nowrap"><font size="2"> </font></td>
<td align="center" width="1%" nowrap="nowrap"><font size="2"> </font></td>
<td align="center" width="12%" nowrap="nowrap"><font size="2">HYASYNTH</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="12%" nowrap="nowrap"><font size="2">CORPORATION</font></td>
<td align="center" width="2%" nowrap="nowrap"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="1%" nowrap="nowrap"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="12%" nowrap="nowrap"><font size="2">BIOLOGICALS INC.</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Statement of financial position</font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="12%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="12%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Current assets</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font size="2"> 10,024</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font size="2"> 3,223</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Non-current assets</font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="right" width="12%"><font size="2">3,173</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="right" width="12%"><font size="2">484</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td bgcolor="#eeeeee"><font size="2"> </font></td>
<td bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td bgcolor="#eeeeee" width="12%"><font size="2"> </font></td>
<td bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td bgcolor="#eeeeee" width="12%"><font size="2"> </font></td>
<td bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Current liabilities</font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="right" width="12%"><font size="2">1,329</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="right" width="12%"><font size="2">62</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Non-current liabilities (Note 1)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font size="2">8,290</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font size="2">5,175</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td><font size="2"> </font></td>
<td width="1%"><font size="2"> </font></td>
<td width="12%"><font size="2"> </font></td>
<td width="2%"><font size="2"> </font></td>
<td width="1%"><font size="2"> </font></td>
<td width="12%"><font size="2"> </font></td>
<td width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Statement of comprehensive loss (Note 2)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="12%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="12%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Revenue</font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="right" width="12%"><font size="2">-</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="right" width="12%"><font size="2">-</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Net income (loss) to shareholders</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font size="2">(1,626</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font size="2">(1,098</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Other comprehensive income (loss) to shareholders</font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="right" width="12%"><font size="2">(319</font></td>
<td align="left" width="2%"><font size="2">)</font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="right" width="12%"><font size="2">-</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Comprehensive income (loss) to shareholders</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font size="2"> (1,945</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="12%"><font size="2"> (1,098</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Note 1: Non-current liabilities include OHI’s convertible debenture investment at its carrying value of $5,000 and $5,000 (excluding capitalized transaction costs and equity discount), for Eviana Health Corporation and Hyasynth Biologicals Inc., respectively.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Note 2: Net loss is from the date of acquisition to June 30, 2019 as per the associates’ most recently issued quarterly financial statements.</font></p>
0
12070000
0
0
95866000
0
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="3">18. REVENUE</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">During the three months ended May 31, 2019, the Company determined that the classification of sales returns and recoveries is more accurately reflected as and most comparable to industry peers as a component of gross revenue rather than a separate line in the statement of operations. As a result, sales recoveries of $493 have been reclassified from sales returns to gross revenue for year ended August 31, 2018 to conform to the current year presentation. The net recovery for the prior year comparative period was due to unused credits previously issued through a client credit program, which expired on March 6, 2018. Net revenue for the Company is defined as gross revenue, which is net of any customer discounts, rebates, and sales returns and recoveries, less excise taxes.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Revenues are disaggregated as follows:</font></p>
<table align="center" style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#8cc2e6" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#8cc2e6" width="11%"><font size="2">AUGUST 31, 2019</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#8cc2e6" width="1%"><font size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="11%"><font size="2">AUGUST 31, 2018</font></td>
<td align="left" bgcolor="#aeaaaa" width="1%"><font size="2"> </font></td>
</tr>
<tr>
<td><font size="2"> </font></td>
<td bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td bgcolor="#e1eaed" width="11%"><font size="2"> </font></td>
<td bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td width="1%"><font size="2"> </font></td>
<td bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td bgcolor="#d6d6d6" width="11%"><font size="2"> </font></td>
<td bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Adult-use recreational wholesale revenue (Canadian)</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font size="2"> 85,018</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font size="2"> -</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Direct to patient medical revenue (Canadian)</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font size="2">11,192</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font size="2">11,002</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Wholesale to Licensed Producers revenue (Canadian)</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font size="2">709</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font size="2">-</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">International (business to business)</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font size="2">98</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font size="2">-</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Other revenue</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%"><font size="2">530</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%"><font size="2">1,427</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Gross revenue</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font size="2"> 97,547</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font size="2"> 12,429</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">   Excise taxes</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%"><font size="2">(17,134</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2">)</font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%"><font size="2">-</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Net revenue</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"><font size="2"> 80,413</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%"><font size="2"> 12,429</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Recreational revenue is primarily comprised of provincial government bodies and large retailers that sell cannabis through their respective distribution models, whereas wholesale revenue is comprised of wholesale shipments to other cannabis companies, including licensed producers, for further processing and sales onto end customers.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">During the year ended August 31, 2019, the Company had 2 customers that individually represented more than 10% of the Company’s net revenue.</font></p>
The maximum exercise period after the grant of an option is 10 years. When an employee's service ends, the expiry date of their options is accelerated to 90 days thereafter, or less, depending on the terms of the related option agreement.
<table align="center" style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#8cc2e6" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#8cc2e6" width="11%">AUGUST 31, 2019</td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#8cc2e6" width="1%"> </td>
<td align="center" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="11%">AUGUST 31, 2018</td>
<td align="left" bgcolor="#aeaaaa" width="1%"> </td>
</tr>
<tr>
<td> </td>
<td bgcolor="#e1eaed" width="1%"> </td>
<td bgcolor="#e1eaed" width="11%"> </td>
<td bgcolor="#e1eaed" width="1%"> </td>
<td width="1%"> </td>
<td bgcolor="#d6d6d6" width="1%"> </td>
<td bgcolor="#d6d6d6" width="11%"> </td>
<td bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Adult-use recreational wholesale revenue (Canadian)</td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="11%"> 85,018</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="11%"> -</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Direct to patient medical revenue (Canadian)</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">11,192</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">11,002</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Wholesale to Licensed Producers revenue (Canadian)</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">709</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">-</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">International (business to business)</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">98</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">-</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Other revenue</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%">530</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%">1,427</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Gross revenue</td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="11%"> 97,547</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="11%"> 12,429</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">   Excise taxes</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%">(17,134</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%">)</td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%">-</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Net revenue</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"> 80,413</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%"> 12,429</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
</table>
32000
0
56435000
108764000
462000
21427000
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"></p>
<div><font color="#8cbddc" size="2"><font color="#8cbddc" size="2"></font></font>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="3">10. INTANGIBLE ASSETS</font></p>
<font color="#8cbddc" size="2"></font><font color="#8cbddc" size="2"><font color="#8cbddc" size="2"><font color="#8cbddc" size="2"><br class="apple-interchange-newline" /></font></font></font>
<div align="center" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><center>
<table style="width: 70%; border-collapse: collapse; font-size: 10pt; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="22%"><font size="2">SUPPLY AGREEMENT</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Cost</font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="22%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Balance, August 31, 2018</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="22%"><font size="2"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Additions</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="22%"><font size="2">1,530</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Balance, August 31, 2019</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="22%"><font size="2"> 1,530</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td><font size="2"> </font></td>
<td width="1%"><font size="2"> </font></td>
<td width="22%"><font size="2"> </font></td>
<td width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Accumulated amortization</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="22%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Balance, August 31, 2018</font></td>
<td align="left" width="1%"><font size="2">$</font></td>
<td align="right" width="22%"><font size="2"> -</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Amortization</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="22%"><font size="2">(32</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Balance, August 31, 2019</font></td>
<td align="left" style="border-bottom: #000000 3px double;" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" width="22%"><font size="2"> (32</font></td>
<td align="left" style="border-bottom: #000000 3px double;" width="2%"><font size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Net book value</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="22%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">August 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 3px double;" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" width="22%"><font size="2"> -</font></td>
<td align="left" style="border-bottom: #000000 3px double;" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">August 31, 2019</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="22%"><font size="2"> 1,498</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
</table>
</center></div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">On January 18, 2019, the Company entered into an agreement with 703454 N.B. Inc. (“1812 Hemp” or “1812”), a New Brunswick based industrial hemp research company, to secure supply and support research and development on the genetic improvement of hemp through traditional plant breeding methods. As part of the agreement, the Company will receive a 25% discount to the price per kilogram of dried hemp flower harvested that is purchased. The term of the agreement is from December 17, 2018 to December 16, 2023 and the Company has the option to renew it for another 5 years within six months’ notice. In addition, the Company has a right-of-first refusal on the future procurement of high CBD hemp from 1812. The Company paid $1,500 to 1812 plus transaction costs of $30 in connection with this transaction, which it has recorded as an intangible asset with a finite useful life that will be amortized based on the actual volume of dried hemp flower purchased as a proportion of its forecast purchase volumes.</font></p>
</div>
<table align="center" style="width: 70%; border-collapse: collapse; font-size: 10pt; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="22%"><font style="font-family: times new roman,times;">SUPPLY AGREEMENT</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Cost</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="22%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">Balance, August 31, 2018</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" bgcolor="#eeeeee" width="22%"><font style="font-family: times new roman,times;"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Additions</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="22%"><font style="font-family: times new roman,times;">1,530</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">Balance, August 31, 2019</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="22%"><font style="font-family: times new roman,times;"> 1,530</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr>
<td><font style="font-family: times new roman,times;"> </font></td>
<td width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td width="22%"><font style="font-family: times new roman,times;"> </font></td>
<td width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">Accumulated amortization</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="22%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Balance, August 31, 2018</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" width="22%"><font style="font-family: times new roman,times;"> -</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">Amortization</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="22%"><font style="font-family: times new roman,times;">(32</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">Balance, August 31, 2019</font></td>
<td align="left" style="border-bottom: #000000 3px double;" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" width="22%"><font style="font-family: times new roman,times;"> (32</font></td>
<td align="left" style="border-bottom: #000000 3px double;" width="2%"><font style="font-family: times new roman,times;">)</font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">Net book value</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="22%"><font style="font-family: times new roman,times;"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;">August 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 3px double;" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" width="22%"><font style="font-family: times new roman,times;"> -</font></td>
<td align="left" style="border-bottom: #000000 3px double;" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;">August 31, 2019</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="22%"><font style="font-family: times new roman,times;"> 1,498</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;"> </font></td>
</tr>
</table>
0
0
0
1530000
-32000
0.25
P5Y
1500000
30000
493000
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" color="#8cbddc" size="4">19. INDIRECT PRODUCTION</font></p>
<div align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" color="#8cbddc" size="4"></font><font style="font-family: times new roman,times;" size="2">The production cost of late-stage biological assets that are disposed of, inventory that does not pass the Company’s quality assurance standards, and obsolete packaging are expensed to indirect production. For the year ended August 31, 2019, $4,733 (August 31, 2018 – $1,289) was recorded as indirect production.</font></div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="3">20. CONTINGENCIES</font></p>
<div align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"> </div>
<div><font style="font-family: times new roman,times;" size="2">The Company recognizes loss contingency provisions for probable losses when management can reasonably estimate the loss. When the estimated loss lies within a range, the Company records a loss contingency provision based on its best estimate of the probable loss. If no particular amount within that range is a better estimate than any other amount, the mid-point of the range is used. As information becomes known a loss contingency provision is recorded when a reasonable estimate can be made. The estimates are reviewed at each reporting date and the estimates are changed when expectations are revised. An outcome that deviates from the Company’s estimate may result in an additional expense or release in a future accounting period.</font></div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">During 2015, the Company was named as a defendant in a lawsuit in New Brunswick for breach of confidence, conversion, breach of contract, conspiracy and breach of trust, breach of fiduciary duty, and negligent misrepresentation. The Company believes the lawsuit to be without merit though it will rigorously defend the action. No amount has been accrued in relation to the consolidated financial statements for the claim.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">On March 3, 2017, a claim in connection with a proposed class-action lawsuit (the “Claim”) was filed with the Supreme Court of Nova Scotia seeking to represent a class who purchased medical marijuana that was the subject of the Company’s product recalls in December 2016 and January 2017 as it may have contained trace elements of the pesticides myclobutanil and bifenazate which are not approved for use by licensed producers. The Claim identifies several causes of action including, among others: (i) negligent design, development and testing, (ii) negligent manufacturing, (iii) negligent distribution, marketing and sale, (iv) breach of contract, and (v) breach of the Competition Act, the Consumer Protection Act, and the Sale of Goods Act, and is seeking remedy in the form of, among other things, the disgorgement of profits accrued to the Company for the sale of contaminated products, exemplary or punitive damages and certain costs. The Claim also contains a request for an order certifying the proceeding as a class proceeding.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The March 3, 2017 Claim was amended on November 16, 2017, to include a claim for alleged adverse health consequences caused as a result of using the recalled product. As at the date hereof, the Company has not received any medical information demonstrating adverse health effects caused as a result of using the recalled product.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The Company and its insurers are contesting the litigation. The litigation process will continue into the foreseeable future unless settled out of court. No amount has been recorded in the consolidated financial statements since a reliable estimate cannot be made of the amount of the potential obligation.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">During late June 2018, certification hearings were heard before the Court in Halifax, Nova Scotia. On January 18, 2019, the Court issued its decision granting certification. On March 4, 2019, the Company filed a notice for leave to appeal the certification of the class action brought against it. Leave to appeal was granted and the appeal was heard on October 15, 2019. The decision from the appeal hearing is pending.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The Company is contesting the litigation. The Company reported the Claim to its insurance provider which appointed counsel to defend the Claim. Insurance may be available to cover all or a portion of the fees or damages which may be associated with the Claim although the Company’s coverage may be subject to varying limits and exclusions. The litigation process will continue into the foreseeable future unless settled out of court. No amount has been recorded in the consolidated financial statements since the amount cannot be reliably measured at this point.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" color="#8cbddc" size="4">21. INCOME TAXES</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">There are no current income taxes payable or recoverable for the year ended August 31, 2019.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Components of deferred income tax expense are as follows:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#8cc2e6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#8cc2e6" width="11%"><font style="font-family: times new roman,times;" size="2">AUGUST 31, 2019</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#8cc2e6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="11%"><font style="font-family: times new roman,times;" size="2">AUGUST 31, 2018</font></td>
<td align="left" bgcolor="#aeaaaa" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Origination and reversal of temporary differences</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> 1,987</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">8,644</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Change in tax rate and rate differences</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">281</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">178</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Change in unrecognized temporary differences</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">1,349</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">(3,165</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Prior period adjustments</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">12</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">(4</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Total income tax expense</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">3,629</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">5,653</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">A reconciliation of income tax expense at the statutory rate to amounts recorded in the consolidated financial statements is provided below.</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="11%"><font style="font-family: times new roman,times;" size="2">AUGUST 31, 2019</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="11%"><font style="font-family: times new roman,times;" size="2">AUGUST 31, 2018</font></td>
<td align="left" bgcolor="#aeaaaa" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Income (loss) from continuing operations before income taxes</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> (5,875</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2"> 27,777</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Statutory rate</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">29.00%</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">29.00%</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Tax calculated at statutory rate</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">(1,704</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">8,055</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Non-deductible (non-taxable) items</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">3,742</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">742</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Difference between current and future tax rates</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">281</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">74</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Benefit of deductible temporary differences not recognized</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">1,349</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">(3,165</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Other</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">(39</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">(53</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Income tax expense per financial statements</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> 3,629</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2"> 5,653</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
</table>
<div> </div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Recognized deferred tax assets and liabilities consist of the following:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="11%"><font style="font-family: times new roman,times;" size="2">AUGUST 31, 2019</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="11%"><font style="font-family: times new roman,times;" size="2">AUGUST 31, 2018</font></td>
<td align="left" bgcolor="#aeaaaa" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Deferred tax assets are attributable to the following:</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Non-capital losses</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> 10,708</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2"> 8,604</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Share issuance costs</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">1,657</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">32</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Deferred tax assets</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">10,708</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">10,293</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Set-off of tax</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">(10,708</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">(10,293</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Net deferred tax asset</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> -</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2"> -</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Deferred tax liabilities are attributable to the following:</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Long-term assets</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> (4,983</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2"> (1,275</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Biological assets</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">(961</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">(3,307</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Inventories</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">(15,200</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">(10,385</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Unsecured convertible debentures</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">(3,306</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Other</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">(35</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Deferred tax liabilities</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">(21,179</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">(18,273</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Set-off of tax</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">10,708</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">10,293</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Net deferred tax liability</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> (10,471</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2"> (7,980</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The changes in temporary differences during the years ended August 31, 2019 and 2018 were as follows:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left" valign="middle"></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="12%"><font style="font-family: times new roman,times;" size="2">NET BALANCE AT</font><br /><font style="font-family: times new roman,times;" size="2">AUGUST 31, 2018</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="12%"><font style="font-family: times new roman,times;" size="2">RECOGNIZED IN</font><br /><font style="font-family: times new roman,times;" size="2">PROFIT OR LO SS</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="12%"><font style="font-family: times new roman,times;" size="2">RECOGNIZED</font><br /><font style="font-family: times new roman,times;" size="2">DIRECTLY IN</font><br /><font style="font-family: times new roman,times;" size="2">EQUITY & OCI</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="12%"><font style="font-family: times new roman,times;" size="2">NET BALANCE AT</font><br /><font style="font-family: times new roman,times;" size="2">AUGUST 31, 2019</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Non-capital losses</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2"> 8,604</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2"> 2,723</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2"> (619</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2"> 10,708</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Share issuance costs</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">1,657</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new;" size="2">(1,657</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">PP&E</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">(1,275</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">(3,708</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">(4,983</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Biological assets</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">(3,307</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">2,346</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">(961</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Inventories</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">(10,385</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">(4,815</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">(15,200</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Unsecured convertible debentures</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">(3,306</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">(108</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">3,414</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Other</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">32</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">(67</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">(35</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Net tax assets (liabilities)</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2"> (7,980</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2"> (3,629</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2"> 1,138</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2"> (10,471</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr>
<td><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" valign="middle"></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="12%"><font style="font-family: times new roman,times;" size="2">NET BALANCE AT</font><br /><font style="font-family: times new roman,times;" size="2">AUGUST 31, 2017</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="12%"><font style="font-family: times new roman,times;" size="2">RECOGNIZED IN</font><br /><font style="font-family: times new roman,times;" size="2">PROFIT OR LO SS</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="12%"><font style="font-family: times new roman,times;" size="2">RECOGNIZED</font><br /><font style="font-family: times new roman,times;" size="2">DIRECTLY IN</font><br /><font style="font-family: times new roman,times;" size="2">EQUITY & OCI</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="12%"><font style="font-family: times new roman,times;" size="2">NET BALANCE AT</font><br /><font style="font-family: times new roman,times;" size="2">AUGUST 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Non-capital losses</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2"> 132</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2"> 7,797</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2"> 675</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2"> 8,604</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Share issuance costs</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">1,657</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">1,657</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">PP&E</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">(132</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">(1,143</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">(1,275</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Biological assets</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">(3,307</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">(3,307</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Inventories</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">(10,385</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">(10,385</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Unsecured convertible debentures</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">1,353</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">(4,659</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">(3,306</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Other</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">32</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2">32</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Net tax assets (liabilities)</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2"> -</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2"> (5,653</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2"> (2,327</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="12%"><font style="font-family: times new roman,times;" size="2"> (7,980</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
</table>
<div> </div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">At August 31, 2019, the Company has non-capital loss carryforwards available to offset future taxable income in Canada, which expire as follows:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font style="font-family: times new roman,times;" color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="12%"><font style="font-family: times new roman,times;" color="#ffffff" size="2">AUGUST 31, 2019</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="2%"><font style="font-family: times new roman,times;" color="#ffffff" size="2"> </font></td>
</tr>
<tr>
<td><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">August 31, 2035</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2"> 1,070</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">August 31, 2037</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">11,727</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">August 31, 2038</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">16,690</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">August 31, 2039</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2">11,562</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="12%"><font style="font-family: times new roman,times;" size="2"> 41,049</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The Company recognizes tax benefits on losses or other deductible amounts where the probable criteria for the recognition of deferred tax assets has been met. The Company's unrecognized deductible temporary differences and unused tax losses for which no deferred tax asset is recognized consist of the following amounts:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="11%"><font style="font-family: times new roman,times;" size="2">AUGUST 31, 2019</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="11%"><font style="font-family: times new roman,times;" size="2">AUGUST 31, 2018</font></td>
<td align="left" bgcolor="#aeaaaa" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Deductible temporary differences</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> 12,010</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2"> 1,467</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Tax losses</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">3,809</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">1,219</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> 15,819</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2"> 2,686</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new;" size="2"> </font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" color="#8cbddc" size="4">22. SEGMENTED INFORMATION</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The Company previously operated in two operating segments – production and sale of cannabis and patient counselling, operating as THC. THC was disposed of on October 16, 2018 (see Note 25). As a result, the Company currently operates in only one operating segment, the production and sale of cannabis. All assets for the production and sale of cannabis segment are domiciled within Canada and effectively all revenues are generated in Canada, except those revenues disclosure in Note 18.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" color="#8cbddc" size="4">23. GENERAL AND ADMINISTRATIVE EXPENSES BY NATURE (excluding discontinued operations)</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="11%"><font style="font-family: times new roman,times;" size="2">AUGUST 31, 2019</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="11%"><font style="font-family: times new roman,times;" size="2">AUGUST 31, 2018</font></td>
<td align="left" bgcolor="#aeaaaa" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Office and general</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> 7,942</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2"> 1,465</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Professional fees</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">4,636</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">684</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Wages and benefits</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">4,443</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">2,520</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Depreciation and amortization</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">664</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">509</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Travel and accommodation</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">456</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">345</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Research and development</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">409</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Utilities</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">43</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">29</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Total general and administrative expenses</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> 18,593</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2"> 5,552</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
</table>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="11%"><font style="font-family: times new roman,times;" size="2">AUGUST 31, 2019</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="11%"><font style="font-family: times new roman,times;" size="2">AUGUST 31, 2018</font></td>
<td align="left" bgcolor="#aeaaaa" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Office and general</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> 7,942</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2"> 1,465</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Professional fees</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">4,636</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">684</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Wages and benefits</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">4,443</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">2,520</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Depreciation and amortization</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">664</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">509</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Travel and accommodation</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">456</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">345</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Research and development</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">409</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;"
size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Utilities</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2">43</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2">29</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Total general and administrative expenses</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"><font style="font-family: times new roman,times;" size="2"> 18,593</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%"><font style="font-family: times new roman,times;" size="2"> 5,552</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
</table>
684000
4636000
509000
664000
345000
456000
0
409000
29000
43000
5552000
941000
75000
18593000
2094000
2521000
<div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="3">24. LICENSING AND ENDORSEMENT AGREEMENT</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">On October 4, 2016, the Company entered into a Licensing and Endorsement Agreement with Swear Net Inc. (the Trailer Park Boys “TPB”) for an exclusive product and branding partnership. In exchange for services, the Company paid $100 in cash and issued 150,000 options at a strike price of $1.52 per share. The fee is being recognized over the life of the agreement of five years as services are delivered. For the year ended August 31, 2019, $99 (August 31, 2018 - $120) has been amortized to share-based compensation and $32 (August 31, 2018 - $nil) has been amortized to selling and marketing expenses. At August 31, 2019, the Company has recorded the current portion of the cash payment and stock options fee of $89 (August 31, 2018 - $122) as a prepaid expense and the long-term portion of the fee of $24 (August 31, 2018 - $46) in deferred charges on the consolidated statements of financial position.</font></p>
<div align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Under the agreement, the Company issued an additional 350,000 in options at a price of $1.52 which vest in accordance with certain conditions being met and a royalty payment of 4% of gross revenues generated specifically from the sales and promotion of certain products as set out in the agreement. As of August 31, 2019, these conditions have been met. For the year ended August 31, 2019, $51 has been expensed (August 31, 2018 – $155) to share-based compensation. At August 31, 2019, the Company has recorded the current portion of the stock options fee of $51 (August 31, 2018 - $51) as a prepaid expense and the long-term portion of the fee of $55 (August 31, 2018 - $106) in deferred charges on the consolidated statements of financial position.</font></div>
</div>
3528000
8902000
-39000
-133000
1563000
10736000
8060000
10093000
9668000
1455000
662000
549000
532000
0
-1261000
5653000
3635000
4124000
13848000
337000
-13134000
-6342000
7266000
-42342000
-48175000
3982000
10562000
-12255000
-35046000
<table align="center" style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#8cc2e6" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#8cc2e6" width="11%">AUGUST 31, 2019</td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#8cc2e6" width="1%"> </td>
<td align="center" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="11%">AUGUST 31, 2018</td>
<td align="left" bgcolor="#aeaaaa" width="1%"> </td>
</tr>
<tr>
<td> </td>
<td bgcolor="#e1eaed" width="1%"> </td>
<td bgcolor="#e1eaed" width="11%"> </td>
<td bgcolor="#e1eaed" width="1%"> </td>
<td width="1%"> </td>
<td bgcolor="#d6d6d6" width="1%"> </td>
<td bgcolor="#d6d6d6" width="11%"> </td>
<td bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Origination and reversal of temporary differences</td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="11%"> 1,987</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="11%">8,644</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Change in tax rate and rate differences</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">281</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">178</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Change in unrecognized temporary differences</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">1,349</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">(3,165</td>
<td align="left" bgcolor="#d6d6d6" width="1%">)</td>
</tr>
<tr valign="top">
<td align="left">Prior period adjustments</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%">12</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%">(4</td>
<td align="left" bgcolor="#d6d6d6" width="1%">)</td>
</tr>
<tr valign="top">
<td align="left">Total income tax expense</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%">3,629</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%">5,653</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
</table>
-449000
-449000
-35000
-35000
-12704000
-35081000
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="11%">AUGUST 31, 2019</td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"> </td>
<td align="center" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="11%">AUGUST 31, 2018</td>
<td align="left" bgcolor="#aeaaaa" width="1%"> </td>
</tr>
<tr>
<td> </td>
<td bgcolor="#e1eaed" width="1%"> </td>
<td bgcolor="#e1eaed" width="11%"> </td>
<td bgcolor="#e1eaed" width="1%"> </td>
<td width="1%"> </td>
<td bgcolor="#d6d6d6" width="1%"> </td>
<td bgcolor="#d6d6d6" width="11%"> </td>
<td bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Income (loss) from continuing operations before income taxes</td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="11%"> (5,875</td>
<td align="left" bgcolor="#e1eaed" width="1%">)</td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="11%"> 27,777</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Statutory rate</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">29.00%</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">29.00%</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr>
<td> </td>
<td bgcolor="#e1eaed" width="1%"> </td>
<td bgcolor="#e1eaed" width="11%"> </td>
<td bgcolor="#e1eaed" width="1%"> </td>
<td width="1%"> </td>
<td bgcolor="#d6d6d6" width="1%"> </td>
<td bgcolor="#d6d6d6" width="11%"> </td>
<td bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Tax calculated at statutory rate</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">(1,704</td>
<td align="left" bgcolor="#e1eaed" width="1%">)</td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">8,055</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">   Non-deductible (non-taxable) items</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">3,742</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">742</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">   Difference between current and future tax rates</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">281</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">74</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">   Benefit of deductible temporary differences not recognized</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">1,349</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">(3,165</td>
<td align="left" bgcolor="#d6d6d6" width="1%">)</td>
</tr>
<tr valign="top">
<td align="left">   Other</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%">(39</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%">)</td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%">(53</td>
<td align="left" bgcolor="#d6d6d6" width="1%">)</td>
</tr>
<tr valign="top">
<td align="left">Income tax expense per financial statements</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"> 3,629</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%"> 5,653</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
</table>
<table align="center" style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="11%">AUGUST 31, 2019</td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"> </td>
<td align="center" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="11%">AUGUST 31, 2018</td>
<td align="left" bgcolor="#aeaaaa" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Deferred tax assets are attributable to the following:</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" bgcolor="#e1eaed" width="11%"> </td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="11%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">   Non-capital losses</td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="11%"> 10,708</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="11%"> 8,604</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">   Share issuance costs</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">-</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">1,657</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%">-</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%">32</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Deferred tax assets</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">10,708</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">10,293</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Set-off of tax</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%">(10,708</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%">)</td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%">(10,293</td>
<td align="left" bgcolor="#d6d6d6" width="1%">)</td>
</tr>
<tr valign="top">
<td align="left">Net deferred tax asset</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"> -</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%"> -</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Deferred tax liabilities are attributable to the following:</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" bgcolor="#e1eaed" width="11%"> </td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="11%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">   Long-term assets</td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="11%"> (4,983</td>
<td align="left" bgcolor="#e1eaed" width="1%">)</td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="11%"> (1,275</td>
<td align="left" bgcolor="#d6d6d6" width="1%">)</td>
</tr>
<tr valign="top">
<td align="left">   Biological assets</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">(961</td>
<td align="left" bgcolor="#e1eaed" width="1%">)</td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">(3,307</td>
<td align="left" bgcolor="#d6d6d6" width="1%">)</td>
</tr>
<tr valign="top">
<td align="left">   Inventories</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">(15,200</td>
<td align="left" bgcolor="#e1eaed" width="1%">)</td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">(10,385</td>
<td align="left" bgcolor="#d6d6d6" width="1%">)</td>
</tr>
<tr valign="top">
<td align="left">   Unsecured convertible debentures</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">-</td>
<td
align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">(3,306</td>
<td align="left" bgcolor="#d6d6d6" width="1%">)</td>
</tr>
<tr valign="top">
<td align="left">   Other</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%">(35</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%">)</td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%">-</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Deferred tax liabilities</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">(21,179</td>
<td align="left" bgcolor="#e1eaed" width="1%">)</td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">(18,273</td>
<td align="left" bgcolor="#d6d6d6" width="1%">)</td>
</tr>
<tr valign="top">
<td align="left">Set-off of tax</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%">10,708</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%">10,293</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Net deferred tax liability</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"> (10,471</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">)</td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%"> (7,980</td>
<td align="left" bgcolor="#d6d6d6" width="1%">)</td>
</tr>
</table>
<table align="center" style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left" valign="middle"></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="12%">NET BALANCE AT<br />AUGUST 31, 2018</td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="12%">RECOGNIZED IN<br />PROFIT OR LO SS</td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="12%">RECOGNIZED<br />DIRECTLY IN<br />EQUITY & OCI</td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="12%">NET BALANCE AT<br />AUGUST 31, 2019</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" valign="middle" width="2%"> </td>
</tr>
<tr>
<td> </td>
<td bgcolor="#e1eaed" width="1%"> </td>
<td bgcolor="#e1eaed" width="12%"> </td>
<td bgcolor="#e1eaed" width="2%"> </td>
<td bgcolor="#e1eaed" width="1%"> </td>
<td bgcolor="#e1eaed" width="12%"> </td>
<td bgcolor="#e1eaed" width="2%"> </td>
<td bgcolor="#e1eaed" width="1%"> </td>
<td bgcolor="#e1eaed" width="12%"> </td>
<td bgcolor="#e1eaed" width="2%"> </td>
<td bgcolor="#e1eaed" width="1%"> </td>
<td bgcolor="#e1eaed" width="12%"> </td>
<td bgcolor="#e1eaed" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Non-capital losses</td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="12%"> 8,604</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="12%"> 2,723</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="12%"> (619</td>
<td align="left" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="12%"> 10,708</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Share issuance costs</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">1,657</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">-</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">(1,657</td>
<td align="left" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">-</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">PP&E</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">(1,275</td>
<td align="left" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">(3,708</td>
<td align="left" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">-</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">(4,983</td>
<td align="left" bgcolor="#e1eaed" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left">Biological assets</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">(3,307</td>
<td align="left" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">2,346</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">-</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">(961</td>
<td align="left" bgcolor="#e1eaed" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left">Inventories</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">(10,385</td>
<td align="left" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">(4,815</td>
<td align="left" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">-</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">(15,200</td>
<td align="left" bgcolor="#e1eaed" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left">Unsecured convertible debentures</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">(3,306</td>
<td align="left" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">(108</td>
<td align="left" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">3,414</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right"
bgcolor="#e1eaed" width="12%">-</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Other</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="12%">32</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="12%">(67</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="12%">-</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="12%">(35</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left">Net tax assets (liabilities)</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="12%"> (7,980</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="12%"> (3,629</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="12%"> 1,138</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="12%"> (10,471</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%">)</td>
</tr>
<tr>
<td> </td>
<td width="1%"> </td>
<td width="12%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="12%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="12%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="12%"> </td>
<td width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" valign="middle"></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="12%">NET BALANCE AT<br />AUGUST 31, 2017</td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="2%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="12%">RECOGNIZED IN<br />PROFIT OR LO SS</td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="2%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="12%">RECOGNIZED<br />DIRECTLY IN<br />EQUITY & OCI</td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="2%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="12%">NET BALANCE AT<br />AUGUST 31, 2018</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" valign="middle" width="2%"> </td>
</tr>
<tr>
<td> </td>
<td bgcolor="#d6d6d6" width="1%"> </td>
<td bgcolor="#d6d6d6" width="12%"> </td>
<td bgcolor="#d6d6d6" width="2%"> </td>
<td bgcolor="#d6d6d6" width="1%"> </td>
<td bgcolor="#d6d6d6" width="12%"> </td>
<td bgcolor="#d6d6d6" width="2%"> </td>
<td bgcolor="#d6d6d6" width="1%"> </td>
<td bgcolor="#d6d6d6" width="12%"> </td>
<td bgcolor="#d6d6d6" width="2%"> </td>
<td bgcolor="#d6d6d6" width="1%"> </td>
<td bgcolor="#d6d6d6" width="12%"> </td>
<td bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Non-capital losses</td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="12%"> 132</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="12%"> 7,797</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="12%"> 675</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="12%"> 8,604</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Share issuance costs</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">-</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">-</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">1,657</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">1,657</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">PP&E</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">(132</td>
<td align="left" bgcolor="#d6d6d6" width="2%">)</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6"
width="12%">(1,143</td>
<td align="left" bgcolor="#d6d6d6" width="2%">)</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">-</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">(1,275</td>
<td align="left" bgcolor="#d6d6d6" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left">Biological assets</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">-</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">(3,307</td>
<td align="left" bgcolor="#d6d6d6" width="2%">)</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">-</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">(3,307</td>
<td align="left" bgcolor="#d6d6d6" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left">Inventories</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">-</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">(10,385</td>
<td align="left" bgcolor="#d6d6d6" width="2%">)</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">-</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">(10,385</td>
<td align="left" bgcolor="#d6d6d6" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left">Unsecured convertible debentures</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">-</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">1,353</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">(4,659</td>
<td align="left" bgcolor="#d6d6d6" width="2%">)</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="12%">(3,306</td>
<td align="left" bgcolor="#d6d6d6" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left">Other</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="12%">-</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="12%">32</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="12%">-</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="12%">32</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Net tax assets (liabilities)</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="12%"> -</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="12%"> (5,653</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%">)</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="12%"> (2,327</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%">)</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="12%"> (7,980</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%">)</td>
</tr>
</table>
P3Y
<table align="center" style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="12%"><font color="#ffffff">AUGUST 31, 2019</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="2%"><font color="#ffffff"> </font></td>
</tr>
<tr>
<td> </td>
<td bgcolor="#e1eaed" width="1%"> </td>
<td bgcolor="#e1eaed" width="12%"> </td>
<td bgcolor="#e1eaed" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">August 31, 2035</td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="12%"> 1,070</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">August 31, 2037</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">11,727</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">August 31, 2038</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="12%">16,690</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">August 31, 2039</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="12%">11,562</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="12%"> 41,049</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"> </td>
</tr>
</table>
937000
2500000
7.05
7.05
305000
115000000
3678000
7155000
388000
12674000
159000
58851000
6673000
35146000
0.153
4201000
6995000
163910000
74328000
<table align="center" style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="11%">AUGUST 31, 2019</td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"> </td>
<td align="center" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="11%">AUGUST 31, 2018</td>
<td align="left" bgcolor="#aeaaaa" width="1%"> </td>
</tr>
<tr>
<td> </td>
<td bgcolor="#e1eaed" width="1%"> </td>
<td bgcolor="#e1eaed" width="11%"> </td>
<td bgcolor="#e1eaed" width="1%"> </td>
<td width="1%"> </td>
<td bgcolor="#d6d6d6" width="1%"> </td>
<td bgcolor="#d6d6d6" width="11%"> </td>
<td bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Deductible temporary differences</td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="11%"> 12,010</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="11%"> 1,467</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left">Tax losses</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%">3,809</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%">1,219</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"> 15,819</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%"> 2,686</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
</tr>
</table>
0.10
8644000
1987000
178000
281000
953000
4543000
-3165000
1349000
-4000
12000
0.2900
0.2900
140000
742000
3742000
98095000
0.180
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="3">13. SHARE CAPITAL</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">(i) Authorized share capital</font><br /><font size="2">The authorized share capital of the Company is an unlimited number of common shares without par value and an unlimited number of preferred shares without par value. All issued shares, consisting only of common shares, are fully paid.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">(ii) Issued share capital</font><br /><font size="2">As at August 31, 2019, the Company’s issued and outstanding share capital consisted of 156,196,347 (August 31, 2018 – 125,207,938) common shares with a stated value of $318,125 (August 31, 2018 - $157,790).</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">(iii) Issuances of share capital</font><br /><font size="2">Share-based payments</font><br /><font size="2">On October 12, 2016, the Company issued 437,957 common shares at a share price of $1.37 as share consideration to TGS International LLC (“TGS”) in exchange for a trademark licensing agreement valued at $600. As per the terms of the agreement, the shares were released to TGS according to an escrow schedule related to certain calendar and operational milestones. At August 31, 2019, the Company has recorded the current portion of the fee of $133 (August 31, 2018 - $133) as a prepaid expense, and the long-term portion of the fee of $133 (August 31, 2018 - $267) as a deferred charge on the consolidated statements of financial position. For the year ended August 31, 2019, $133 (August 31, 2018 - $133) has been amortized to share-based compensation.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">On July 14, 2017, the Company entered into an advisory services agreement with a cannabis consultant that resulted in the grant of 125,000 common shares that vested over various service periods up to and including October 14, 2018. The fair value of the grant was measured based on the average monthly share price of the Company over the various tranches and vesting periods resulting in a cumulative expense of $539. On October 23, 2017, the Company issued 50,000 common shares, of which 20,000 related to the advisory services agreement, as share consideration to the consultant and recognized $144 to share capital. During the year ended August 31, 2019, the Company settled the remaining balance of 105,000 common shares due to the consultant in the form of 41,000 common shares of the Company and 84,000 restricted stock units, which vest immediately, to purchase 84,000 common shares of the Company, which fully settles the Company’s obligations relating to this agreement.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Exercise of stock options</font><br /><font size="2">During the year ended August 31, 2019, 2,167,864 (August 31, 2018 – 504,801) share options were exercised at an average exercise price of $1.92 (August 31, 2018 - $1.43) for an increase of $6,588 (August 31, 2018 - $1,183) to share capital and a decrease to the reserve for options and warrants of $2,418 (August 31, 2018 - $462).</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Equity financing</font><br /><font size="2">On December 18, 2017, the Company issued 16,428,572 units by way of a bought deal at $3.50 per unit share for total gross consideration of $48,711 recorded to share capital and an increase of $8,789 to the reserve for options and warrants. Each unit consists of one common share and one-half common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant entitled the holder thereof to acquire one common share of the Company at a price of $4.00 until June 18, 2019. Total issue costs were $3,678, with $3,116 charged to share capital and the remaining $562 charged to the reserve for options and warrants. These warrants are measured at fair value at the date of grant. In determining the amount of reserve for the warrants, the Company used the Black-Scholes option pricing model to establish the fair value of warrants granted using the following assumptions:</font></p>
<div align="center" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">
<table style="width: 40%; border-collapse: collapse; font-size: 10pt; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top" bgcolor="#eeeeee">
<td align="left"><font size="2">Risk free interest rate %</font></td>
<td align="center" width="50%"><font size="2">1.6%</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Expected life of warrants (years)</font></td>
<td align="center" width="50%"><font size="2">1.5</font></td>
</tr>
<tr valign="top" bgcolor="#eeeeee">
<td align="left"><font size="2">Expected annualized volatility %</font></td>
<td align="center" width="50%"><font size="2">64.6%</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Expected dividend yield %</font></td>
<td align="center" width="50%"><font size="2">-</font></td>
</tr>
</table>
</div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Volatility was estimated by using the weighted average historical volatility of the Company and other companies, that the Company considers comparable that have trading and volatility history. The expected life in years represents the period of time that the warrants granted are expected to be outstanding. The risk-free rate is based on government of Canada bonds with a remaining term equal to the expected life of the warrants. A forfeiture rate of zero percent was used as the Company anticipated all warrants will be exercised.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">During the year-ended August 31, 2019, 7,739,205 (August 31, 2018 – 127,649) of the $4.00 warrants were exercised into common shares prior to expiry on June 18, 2019 on a one for one basis. 347,432 warrants remained unexercised at the expiry time and expired as a result. The warrants were delisted from the TSX Venture Exchange on June 18, 2019.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Convertible debenture financing</font><br /><font size="2">On January 31, 2018, 115,000 convertible debentures were sold at a price of $1,000 per convertible debenture, for aggregate gross proceeds of $115,000 resulting in an increase to the reserve for options and warrants of $12,003, net of deferred tax of $4,902, related to the embedded conversion feature in the convertible debenture (see Note 12). Total issue cost was $7,155 with $6,094 charged to the debenture liability and the remaining $756, net of deferred tax of $305, charged to the reserve for options and warrants.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Conversion of debentures</font><br /><font size="2">For the year ended August 31, 2019, the Company issued 20,845,372 (August 31, 2018 – 372,324) common shares at a price per share of $5.42 on the conversion of convertible debentures (Note 12) for an increase of $112,166 (August 31, 2018 - $2,312) to share capital and a decrease of $11,247 (August 31, 2018 - $294) to the reserve for options and warrants. This non-cash financing activity has been excluded from the Company’s statement of cash flows as it did not provide or use any cash.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">On February 27, 2019, the Company elected to exercise its right under the indenture governing the convertible unsecured debentures to convert all of the principal amount outstanding of the remaining debentures on April 1, 2019 into common shares of the Company on the basis of the daily VWAP of the common shares exceeding $7.05 for any 10 consecutive trading days (see Note 12). As of April 1, 2019, all of the convertible unsecured debentures issued were converted to common shares of the Company and no further liability or obligation exists with respect to the convertible unsecured debentures.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="2">(iv) Warrants</font><br /><font size="2">During the year ended August 31, 2019, 7,739,205 warrants (August 31, 2018 – 4,330,837) were exercised at an average price of $4.00 (August 31, 2018 - $1.38) for a value of $39,257 (August 31, 2018 - $6,693) to share capital and a decrease to the reserve for options and warrants of $8,281 (August 31, 2018 - $739). All the outstanding warrants at June 18, 2019 that were not exercised into common shares prior to expiry on June 18, 2019 lapsed.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The following table summarizes the movements in the Company’s warrants for the years ended August 31, 2019 and 2018:</font></p>
<div align="center" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><center>
<table style="width: 100%; border-collapse: collapse; font-size: 10pt; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="17%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2">WEIGHTED AVERAGE</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 2px solid;" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 2px solid;" width="17%"><font size="2">NUMBER</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 2px solid;" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 2px solid;" width="17%"><font size="2">EXERCISE PRICE</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Balance - August 31, 2017</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2">4,328,625</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2"> 1.30</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Granted</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2">8,214,286</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2"> 4.00</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Exercised/Released</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2">(4,330,837</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2"> 1.38</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Expired</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="17%"><font size="2">(125,437</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="17%"><font size="2"> 1.35</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Balance - August 31, 2018</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2">8,086,637</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2"> 4.00</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Exercised/Released</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2">(7,739,205</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2"> 4.00</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Expired/Lapsed</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="17%"><font size="2">(347,432</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="17%"><font size="2"> 4.00</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Balance - August 31, 2019</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="17%"><font size="2">-</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="17%"><font size="2"> -</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
</table>
</center></div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><font color="#8cbddc">(v) Share-based compensation<br /></font>Stock options</font><br /><font size="2">Under the Company’s stock option plan, options may be granted for up to 10% of the issued and outstanding common shares together with any other equity compensation plan of the Company, as approved by the Company’s Board of Directors. The exercise price of any option is determined based on market price calculated in accordance with TSX rules at the time of grant.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The maximum exercise period after the grant of an option is 10 years. When an employee’s service ends, the expiry date of their options is accelerated to 90 days thereafter, or less, depending on the terms of the related option agreement.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The Company also issues stock options to third parties in exchange for services.</font> </p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The following table summarizes the movements in the Company’s outstanding stock options for the years ended August 31, 2019 and 2018:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="left" width="17%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2">WEIGHTED AVERAGE</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: 2px solid;" dir="ltr" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: 2px solid;" dir="ltr" width="17%"><font size="2">NUMBER</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: 2px solid;" dir="ltr" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: 2px solid;" dir="ltr" width="17%"><font size="2">EXERCISE PRICE</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Balance - August 31, 2017</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2">6,352,049</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2"> 1.48</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Granted</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2">2,056,648</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2"> 3.90</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Exercised</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2">(504,801</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2"> 1.43</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Cancelled / Forfeited</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="17%"><font size="2">(194,150</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="17%"><font size="2"> 2.43</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Balance - August 31, 2018</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2">7,709,746</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2"> 2.10</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Granted</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2">3,589,500</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2"> 7.59</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Exercised</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2">(2,167,864</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#eeeeee" width="17%"><font size="2"> 1.92</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Cancelled / Forfeited</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="17%"><font size="2">(298,188</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="17%"><font size="2"> 6.41</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="17%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Balance - August 31, 2019</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="17%"><font size="2">8,833,194</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="17%"><font size="2"> 4.23</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The following is a summary of the outstanding stock options as at August 31, 2019:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="center" style="border-bottom: #000000 1px solid;" colspan="2" nowrap="nowrap"><font size="2">OPTIONS OUTSTANDING</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" width="50%" colspan="2" nowrap="nowrap"><font size="2">OPTIONS EXERCISABLE</font></td>
</tr>
<tr valign="top">
<td align="right" nowrap="nowrap"><font size="2">Quantity Outstanding</font></td>
<td align="right" width="25%" nowrap="nowrap"><font size="2">Weighted Average Remaining</font></td>
<td align="right" width="25%" nowrap="nowrap"><font size="2">Range of Exercise</font></td>
<td align="right" width="25%" nowrap="nowrap"><font size="2">Quantity Exercisable</font></td>
</tr>
<tr valign="top">
<td align="right" style="border-bottom: #000000 1px solid;" nowrap="nowrap"><font size="2">at August 31, 2019</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="25%" nowrap="nowrap"><font size="2">Contractual Life (years)</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="25%" nowrap="nowrap"><font size="2">Prices</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="25%" nowrap="nowrap"><font size="2">at August 31, 2019</font></td>
</tr>
<tr valign="top">
<td align="right" bgcolor="#eeeeee"><font size="2">1,814,449</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">6.02</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">$0.30-$1.48</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">1,365,465</font></td>
</tr>
<tr valign="top">
<td align="right"><font size="2">2,003,333</font></td>
<td align="right" width="25%"><font size="2">7.42</font></td>
<td align="right" width="25%"><font size="2">$1.49-$2.38</font></td>
<td align="right" width="25%"><font size="2">1,563,999</font></td>
</tr>
<tr valign="top">
<td align="right" bgcolor="#eeeeee"><font size="2">1,462,344</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">8.20</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">$2.39-$4.65</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font size="2">756,218</font></td>
</tr>
<tr valign="top">
<td align="right"><font size="2">1,705,568</font></td>
<td align="right" width="25%"><font size="2">9.13</font></td>
<td align="right" width="25%"><font size="2">$4.66-$7.67</font></td>
<td align="right" width="25%"><font size="2">626,151</font></td>
</tr>
<tr valign="top">
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee"><font size="2">1,847,500</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="25%"><font size="2">9.70</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="25%"><font size="2">$7.68-$11.27</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="25%"><font size="2">594,350</font></td>
</tr>
<tr valign="top">
<td align="right" style="border-bottom: #000000 3px double;"><font size="2">8,833,194</font></td>
<td align="right" style="border-bottom: #000000 3px double;" width="25%"><font size="2">8.07</font></td>
<td align="left" style="border-bottom: #000000 3px double;" width="25%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 3px double;" width="25%"><font size="2">4,906,183</font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Options outstanding have exercise prices that range from $0.30 to $11.27 with a weighted average remaining life of 8.07 years. Total share-based compensation charges, including those related to production employees that are charged to biological assets and inventory, for the year ended August 31, 2019 was $14,894 (August 31, 2018 – $5,033) of which $10,036 (August 31, 2018 - $4,649) related to the Company’s stock option plan. The fair value of options granted during the year ended August 31, 2019 was $13,848 (August 31, 2018 - $4,124). These options are measured at fair value at the date of grant and are expensed over the option’s vesting period, which typically range from two to three-year terms with options vesting in annual tranches evenly over this time period. In determining the amount of share-based compensation related to the options, the Company used the Black-Scholes option pricing model to establish the fair value of options granted.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The following is the range of assumptions for the years ended August 31, 2019 and 2018:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="19%"><font size="2">AUGUST 31, 2019</font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="19%"><font size="2">AUGUST 31, 2018</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Risk free interest rate</font></td>
<td align="center" bgcolor="#e1eaed" width="19%"><font size="2">1.20% - 2.42%</font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" width="19%"><font size="2">1.59% - 2.26%</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Expected life of options</font></td>
<td align="center" bgcolor="#e1eaed" width="19%"><font size="2">5.0 - 6.5 years</font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" width="19%"><font size="2">5.0 - 6.5 years</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Expected annualized volatility</font></td>
<td align="center" bgcolor="#e1eaed" width="19%"><font size="2">64% - 71%</font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" width="19%"><font size="2">62% - 69%</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Expected dividend yield</font></td>
<td align="center" bgcolor="#e1eaed" width="19%"><font size="2">-</font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" width="19%"><font size="2">-</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Forfeiture Rate</font></td>
<td align="center" bgcolor="#e1eaed" width="19%"><font size="2">7.3% - 8.0%</font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" width="19%"><font size="2">8.1% - 15.0%</font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Volatility was estimated by using the weighted average historical volatility of the Company and other companies, that the Company considers comparable that have trading and volatility history. The expected life in years represents the period of time that options granted are expected to be outstanding. The risk-free rate is based on government of Canada bonds with a remaining term equal to the expected life of the options. The forfeiture rate is calculated based on historical experience.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Equity incentive plan</font><br /><font size="2">Under the Company’s Equity Incentive Plan (the “Equity Plan”), the maximum number of common shares that may be issued upon exercise of share units may not exceed 2,500,000 common shares and shall not exceed 10% of the issued and outstanding equity securities of the Company from time to time, combined with any equity securities granted under all other compensation arrangements adopted by the Company. As of August 31, 2019, the Company had only granted restricted share units (“RSUs”) under the Equity Plan, however subsequent to year-end the Company also granted performance share units (“PSUs”) as described in Note 27. The grant price of any RSU or PSU is determined based on market price calculated in accordance with TSX rules at the time of grant.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The following table summarizes the movements in the Company’s outstanding RSUs:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 2px solid;" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 2px solid;" width="22%"><font size="2">NUMBER</font></td>
<td align="left" style="border-bottom: #000000 2px solid;" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="22%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Balance - August 31, 2018</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="22%"><font size="2">145,200</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="22%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Granted</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="22%"><font size="2">879,635</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" width="1%"><font size="2"> </font></td>
<td align="right" width="22%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Exercised</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="22%"><font size="2">(182,473</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="center" width="1%"><font size="2"> </font></td>
<td align="center" width="22%"><font size="2"> </font></td>
<td align="center" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Balance - August 31, 2019</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="22%"><font size="2">842,362</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="2%"><font size="2"> </font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The estimated fair value of the equity settled RSUs granted during the year ended August 31, 2019 was $4,543 (August 31, 2018 - $953), which was based on the Company’s share price at the grant date and will be recognized as an expense over the vesting period of the RSUs, which is one-half upfront with the balance recognized over two years. For the year ended August 31, 2019, $3,475 (August 31, 2018 - $49) has been recognized as share-based compensation expense.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><font color="#8cbddc">(vi) Earnings (Loss) per share<br /></font>Earnings (loss) per share represents net income (loss) attributable to common shareholders divided by the weighted average number of common shares outstanding during the year.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Diluted income (loss) per share is calculated by dividing the applicable net income (loss) by the sum of the weighted average number of common shares outstanding and all additional common shares that would have been outstanding if potentially dilutive common shares had been issued during the year.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The reconciliation of the weighted average number of shares, for the purposes of diluted earnings per share, to the weighted average number of ordinary shares, used in the calculation of basic earnings per share, is as follows:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="17%"><font color="#ffffff" size="2">AUGUST 31, 2019</font></td>
<td align="center" width="2%"><font color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="17%"><font color="#ffffff" size="2">AUGUST 31, 2018</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Weighted average number of shares used in basic earnings per share</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="17%"><font size="2">140,923,324</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="17%"><font size="2">120,564,334</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Options</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="17%"><font size="2">5,194,827</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="17%"><font size="2">3,979,470</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Warrants</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="17%"><font size="2">4,738,388</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="17%"><font size="2">2,308,727</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Restricted shares units</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="17%"><font size="2">684,534</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="17%"><font size="2">8,022</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Weighted average number of shares used in diluted earnings per share</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="17%"><font size="2">151,541,073</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="17%"><font size="2">126,860,553</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The outstanding number and type of securities that could potentially dilute basic net income (loss) per share in the future but that were not included in the computation of diluted net income (loss) per share because to do so would have increased (decreased) the net income (loss) per share (anti-dilutive) are as follows:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="17%"><font color="#ffffff" size="2">AUGUST 31, 2019</font></td>
<td align="center" width="2%"><font color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="17%"><font color="#ffffff" size="2">AUGUST 31, 2018</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Stock options</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="17%"><font size="2">1,847,500</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="17%"><font size="2">7,709,746</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Convertible debentures</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="17%"><font size="2">-</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="17%"><font size="2">20,845,387</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Warrants</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="17%"><font size="2">-</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="17%"><font size="2">8,086,637</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="17%"><font size="2">1,847,500</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="17%"><font size="2">36,641,770</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
</tr>
</table>
174200000
131200000
75000000
374000
909000
15000
168000
1530000
-97965000
-46782000
-32000
-97997000
-46782000
26000
53209000
-7509000
-102000
-481000
-35000
-53000
-39000
74000
281000
<div>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top" bgcolor="#eeeeee">
<td align="left">Risk free interest rate %</td>
<td align="center" width="50%">1.6%</td>
</tr>
<tr valign="top">
<td align="left">Expected life of warrants (years)</td>
<td align="center" width="50%">1.5</td>
</tr>
<tr valign="top" bgcolor="#eeeeee">
<td align="left">Expected annualized volatility %</td>
<td align="center" width="50%">64.6%</td>
</tr>
<tr valign="top">
<td align="left">Expected dividend yield %</td>
<td align="center" width="50%">-</td>
</tr>
</table>
</div>
-145000
<div>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" width="1%"> </td>
<td align="left" width="17%"> </td>
<td align="left" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="right" width="17%">WEIGHTED AVERAGE</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 2px solid;" width="1%"> </td>
<td align="right" style="border-bottom: #000000 2px solid;" width="17%">NUMBER</td>
<td align="left" width="2%"> </td>
<td align="left" style="border-bottom: #000000 2px solid;" width="1%"> </td>
<td align="right" style="border-bottom: #000000 2px solid;" width="17%">EXERCISE PRICE</td>
<td align="left" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Balance - August 31, 2017</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="17%">4,328,625</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" bgcolor="#eeeeee" width="17%"> 1.30</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Granted</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="17%">8,214,286</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" bgcolor="#eeeeee" width="17%"> 4.00</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Exercised/Released</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="17%">(4,330,837</td>
<td align="left" bgcolor="#eeeeee" width="2%">)</td>
<td align="left" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" bgcolor="#eeeeee" width="17%"> 1.38</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Expired</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="17%">(125,437</td>
<td align="left" bgcolor="#eeeeee" width="2%">)</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="17%"> 1.35</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Balance - August 31, 2018</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="17%">8,086,637</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" bgcolor="#eeeeee" width="17%"> 4.00</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Exercised/Released</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="17%">(7,739,205</td>
<td align="left" bgcolor="#eeeeee" width="2%">)</td>
<td align="left" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" bgcolor="#eeeeee" width="17%"> 4.00</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Expired/Lapsed</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="17%">(347,432</td>
<td align="left" bgcolor="#eeeeee" width="2%">)</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="17%"> 4.00</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Balance - August 31, 2019</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee"
width="1%"> </td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="17%">-</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="17%"> -</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
</table>
</div>
-3165000
1349000
-2169000
-13540000
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" width="1%"> </td>
<td align="left" width="17%"> </td>
<td align="left" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="right" width="17%">WEIGHTED AVERAGE</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: 2px solid;" dir="ltr" width="1%"> </td>
<td align="right" style="border-bottom: 2px solid;" dir="ltr" width="17%">NUMBER</td>
<td align="left" width="2%"> </td>
<td align="left" style="border-bottom: 2px solid;" dir="ltr" width="1%"> </td>
<td align="right" style="border-bottom: 2px solid;" dir="ltr" width="17%">EXERCISE PRICE</td>
<td align="left" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Balance - August 31, 2017</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="17%">6,352,049</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" bgcolor="#eeeeee" width="17%"> 1.48</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Granted</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="17%">2,056,648</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" bgcolor="#eeeeee" width="17%"> 3.90</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Exercised</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="17%">(504,801</td>
<td align="left" bgcolor="#eeeeee" width="2%">)</td>
<td align="left" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" bgcolor="#eeeeee" width="17%"> 1.43</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Cancelled / Forfeited</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="17%">(194,150</td>
<td align="left" bgcolor="#eeeeee" width="2%">)</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="17%"> 2.43</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Balance - August 31, 2018</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="17%">7,709,746</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" bgcolor="#eeeeee" width="17%"> 2.10</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Granted</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="17%">3,589,500</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" bgcolor="#eeeeee" width="17%"> 7.59</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Exercised</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="17%">(2,167,864</td>
<td align="left" bgcolor="#eeeeee" width="2%">)</td>
<td align="left" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" bgcolor="#eeeeee" width="17%"> 1.92</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Cancelled / Forfeited</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="17%">(298,188</td>
<td align="left" bgcolor="#eeeeee" width="2%">)</td>
<td
align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="17%"> 6.41</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="17%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Balance - August 31, 2019</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="17%">8,833,194</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="17%"> 4.23</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
</table>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="center" style="border-bottom: #000000 1px solid;" colspan="2" nowrap="nowrap">OPTIONS OUTSTANDING</td>
<td align="center" style="border-bottom: #000000 1px solid;" width="50%" colspan="2" nowrap="nowrap">OPTIONS EXERCISABLE</td>
</tr>
<tr valign="top">
<td align="right" nowrap="nowrap">Quantity Outstanding</td>
<td align="right" width="25%" nowrap="nowrap">Weighted Average Remaining</td>
<td align="right" width="25%" nowrap="nowrap">Range of Exercise</td>
<td align="right" width="25%" nowrap="nowrap">Quantity Exercisable</td>
</tr>
<tr valign="top">
<td align="right" style="border-bottom: #000000 1px solid;" nowrap="nowrap">at August 31, 2019</td>
<td align="right" style="border-bottom: #000000 1px solid;" width="25%" nowrap="nowrap">Contractual Life (years)</td>
<td align="right" style="border-bottom: #000000 1px solid;" width="25%" nowrap="nowrap">Prices</td>
<td align="right" style="border-bottom: #000000 1px solid;" width="25%" nowrap="nowrap">at August 31, 2019</td>
</tr>
<tr valign="top">
<td align="right" bgcolor="#eeeeee">1,814,449</td>
<td align="right" bgcolor="#eeeeee" width="25%">6.02</td>
<td align="right" bgcolor="#eeeeee" width="25%">$0.30-$1.48</td>
<td align="right" bgcolor="#eeeeee" width="25%">1,365,465</td>
</tr>
<tr valign="top">
<td align="right">2,003,333</td>
<td align="right" width="25%">7.42</td>
<td align="right" width="25%">$1.49-$2.38</td>
<td align="right" width="25%">1,563,999</td>
</tr>
<tr valign="top">
<td align="right" bgcolor="#eeeeee">1,462,344</td>
<td align="right" bgcolor="#eeeeee" width="25%">8.20</td>
<td align="right" bgcolor="#eeeeee" width="25%">$2.39-$4.65</td>
<td align="right" bgcolor="#eeeeee" width="25%">756,218</td>
</tr>
<tr valign="top">
<td align="right">1,705,568</td>
<td align="right" width="25%">9.13</td>
<td align="right" width="25%">$4.66-$7.67</td>
<td align="right" width="25%">626,151</td>
</tr>
<tr valign="top">
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee">1,847,500</td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="25%">9.70</td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="25%">$7.68-$11.27</td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="25%">594,350</td>
</tr>
<tr valign="top">
<td align="right" style="border-bottom: #000000 3px double;">8,833,194</td>
<td align="right" style="border-bottom: #000000 3px double;" width="25%">8.07</td>
<td align="left" style="border-bottom: #000000 3px double;" width="25%"> </td>
<td align="right" style="border-bottom: #000000 3px double;" width="25%">4,906,183</td>
</tr>
</table>
<div>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="19%">AUGUST 31, 2019</td>
<td align="center" width="2%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="19%">AUGUST 31, 2018</td>
</tr>
<tr valign="top">
<td align="left">Risk free interest rate</td>
<td align="center" bgcolor="#e1eaed" width="19%">1.20% - 2.42%</td>
<td align="center" width="2%"> </td>
<td align="center" bgcolor="#d6d6d6" width="19%">1.59% - 2.26%</td>
</tr>
<tr valign="top">
<td align="left">Expected life of options</td>
<td align="center" bgcolor="#e1eaed" width="19%">5.0 - 6.5 years</td>
<td align="center" width="2%"> </td>
<td align="center" bgcolor="#d6d6d6" width="19%">5.0 - 6.5 years</td>
</tr>
<tr valign="top">
<td align="left">Expected annualized volatility</td>
<td align="center" bgcolor="#e1eaed" width="19%">64% - 71%</td>
<td align="center" width="2%"> </td>
<td align="center" bgcolor="#d6d6d6" width="19%">62% - 69%</td>
</tr>
<tr valign="top">
<td align="left">Expected dividend yield</td>
<td align="center" bgcolor="#e1eaed" width="19%">-</td>
<td align="center" width="2%"> </td>
<td align="center" bgcolor="#d6d6d6" width="19%">-</td>
</tr>
<tr valign="top">
<td align="left">Forfeiture Rate</td>
<td align="center" bgcolor="#e1eaed" width="19%">7.3% - 8.0%</td>
<td align="center" width="2%"> </td>
<td align="center" bgcolor="#d6d6d6" width="19%">8.1% - 15.0%</td>
</tr>
</table>
</div>
1455000
1637000
1.04
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 2px solid;" width="1%"> </td>
<td align="right" style="border-bottom: #000000 2px solid;" width="22%">NUMBER</td>
<td align="left" style="border-bottom: #000000 2px solid;" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="22%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Balance - August 31, 2018</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="22%">145,200</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="22%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Granted</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="22%">879,635</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="right" width="1%"> </td>
<td align="right" width="22%"> </td>
<td align="right" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Exercised</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="22%">(182,473</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="2%">)</td>
</tr>
<tr>
<td align="left"> </td>
<td align="center" width="1%"> </td>
<td align="center" width="22%"> </td>
<td align="center" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Balance - August 31, 2019</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="22%">842,362</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#eeeeee" width="2%"> </td>
</tr>
</table>
<div>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="17%"><font color="#ffffff">AUGUST 31, 2019</font></td>
<td align="center" width="2%"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="17%"><font color="#ffffff">AUGUST 31, 2018</font></td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Weighted average number of shares used in basic earnings per share</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="17%">140,923,324</td>
<td align="left" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="17%">120,564,334</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Options</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="17%">5,194,827</td>
<td align="left" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="17%">3,979,470</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Warrants</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="17%">4,738,388</td>
<td align="left" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="17%">2,308,727</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Restricted shares units</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="17%">684,534</td>
<td align="left" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="17%">8,022</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Weighted average number of shares used in diluted earnings per share</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="17%">151,541,073</td>
<td align="left" width="2%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="17%">126,860,553</td>
<td align="left" width="2%"> </td>
</tr>
</table>
</div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" color="#8cbddc" size="4">27. SUBSEQUENT EVENTS</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" color="#8cbddc" size="2">(i) Issuance of stock options</font><br /><font style="font-family: times new roman,times;" size="2">On September 30, 2019, the Company issued 220,000 employee options to purchase 220,000 common shares of the Company, to employees of OGI, at an exercise price of $5.05 per share. The options vest over a two-year period. Vested options may be exercised until 2029, subject to forfeiture provisions requiring the options to expire ninety days after termination of the individual’s employment. The fair value is estimated at $549.</font></p>
<p style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">On October 7, 2019, the Company issued 218,370 RSUs and 142,187 PSUs of the Company, to certain employees and directors of the Company.  The RSUs vest evenly over a three-year period with the first tranche vesting on August 31, 2020 with a fair value estimated at $937.  The PSUs vest based on the achievement of performance metrics designed for each respective unit holder for the fiscal year ended August 31, 2020 with a fair value estimated at $305.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">On October 24, 2019, the Company issued 200,000 employee options to purchase 200,000 common shares of the Company, to employees of OGI, at an exercise price of $4.71 per share. The options vest over a two-year period. Vested options may be exercised until 2029, subject to forfeiture provisions requiring the options to expire ninety days after termination of the individual’s employment. The fair value is estimated at $532.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" color="#8cbddc" size="2">(ii) 1812 Hemp loan advance</font><br /><font style="font-family: times new roman,times;" size="2">During September 2019, the Company advanced an additional $2,100 to 1812 Hemp in connection with the advance payment agreement described in Note 6.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" color="#8cbddc" size="2">(iii) BMO Credit Facility</font><br /><font style="font-family: times new roman,times;" size="2">During October 2019, the Company drew $15,000 against its BMO Term Loan credit facility, bringing the total balance outstanding on the Term Loan to $65,000 as of the date of these financial statements.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">On November 15, 2019, the Company amended its Facilities with BMO to: i) extend the final draw deadline of the Term Loan from November 30, 2019 to March 31, 2020; ii) postpone the commencement of scheduled principal repayments on the Term Loan to May 31, 2020; and iii) realign the financial covenants structure, effective November 30, 2019, to be more consistent with industry norms up to and including May 31, 2020, which will also provide the Company with greater flexibility around the timing and quantum of incremental draws. The financial covenants will revert back to the original structure on August 31, 2020. The interest rate margin will be fixed during this period. The Company incurred an amendment fee of $140 plus customary legal expenses in connection with the amendment.</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="17%"><font color="#ffffff">AUGUST 31, 2019</font></td>
<td align="center" width="2%"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="17%"><font color="#ffffff">AUGUST 31, 2018</font></td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Stock options</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="17%">1,847,500</td>
<td align="left" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="17%">7,709,746</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Convertible debentures</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="17%">-</td>
<td align="left" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="17%">20,845,387</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Warrants</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="17%">-</td>
<td align="left" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="17%">8,086,637</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="17%">1,847,500</td>
<td align="left" width="2%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="17%">36,641,770</td>
<td align="left" width="2%"> </td>
</tr>
</table>
10293000
10708000
0
0
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font color="#8cbddc" size="4">26. PRIOR PERIOD RECLASSIFICATION</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">At the beginning of the 2019 fiscal year, the first fiscal year in which the Company completed sales to the adult-use recreational cannabis market, it was determined that the classification of shipping expenses is more accurately reflected as a component of cost of sales rather than sales and marketing expenses. As a result, shipping expenses of $866 have been reclassified from sales and marketing expenses to cost of sales for the year ended August 31, 2018 to conform to the current year presentation.</font></p>
ORGANIGRAM HOLDINGS INC.
0001620737
Yes
--08-31
156196347
40-F/A
2019-08-31
false
2019
FY
true
false
866000
7980000
10471000
10293000
10708000
100000
-10293000
-10708000
32000
<div align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times; ; font-family: times new roman,times;" color="#8cbddc" size="2">i) Cash and cash equivalents</font><br /><font style="font-family: times new roman,times; ; font-family: times new roman,times;" size="2">Cash and cash equivalents are financial assets that are measured at amortized cost, which approximate fair value and include cash-on-hand and deposits held with financing institutions.</font></div>
<div><font style="font-family: times new roman,times;" size="2"><font color="#8cbddc">ii) Short term investments<br style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" /></font>The Company considers short-term investments in the form of guaranteed investment certificates to be an investing activity. These investments are measured at amortized cost. The company also has equity securities that are carried at fair value through profit or loss.</font></div>
<div><font style="font-family: times new roman,times;" size="2"><font color="#8cbddc">iii) Biological assets<br style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" /></font>While the Company’s biological assets are within the scope of IAS 41 Agriculture, the direct and indirect costs of biological assets are determined using an approach similar to the capitalization criteria outlined in IAS 2 Inventories. They include the direct cost of seeds and growing materials as well as other indirect costs such as utilities and supplies used in the growing process. Indirect labour cost for individuals involved in the growing and quality control process is also included, as well as depreciation of manufacturing assets. All direct and indirect costs of biological assets are capitalized as they are incurred. Unrealized fair value gains/losses on growth of biological assets are recorded on the consolidated statements of (loss) income and comprehensive (loss) income. Biological assets are measured at their fair value less costs to sell on the consolidated statement of financial position.</font></div>
<div><font style="font-family: times new roman,times;" size="2"><font color="#8cbddc">iv) Inventories<br style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" /></font>Inventories for finished goods and packaging and supplies are initially valued at cost, and subsequently at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs to sell. The Company reviews inventories for obsolete, redundant and slow-moving goods and any such inventories identified are written down to net realizable value. The direct and indirect costs of finished goods inventory initially include the fair value of the biological asset at the time of harvest. They also include subsequent costs such as materials, labour and depreciation expense on equipment involved in packaging, labeling and inspection. All direct and indirect costs related to inventory are capitalized as they are incurred, and they are subsequently recorded within cost of sales on the consolidated statements of (loss) income and comprehensive (loss) income at the time cannabis is sold. Inventory is measured at lower of cost or net realizable value on the statement of financial position.</font></div>
<div><font style="font-family: times new roman,times;" size="2"><font style="font-family: times new roman,times;" size="2"><font color="#8cbddc">v) Property, plant and equipment</font><br /><font size="2">Property, plant and equipment are initially recognized at acquisition cost or manufacturing cost, including any costs directly attributable to bringing the assets to the location and condition necessary for them to be capable of operating in the manner intended by the Company’s management. Property, plant and equipment are subsequently measured at cost less accumulated depreciation and impairment losses.</font></font></font>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Depreciation is recognized on a straight-line basis to write down the cost less estimated residual value of buildings, computer equipment and growing equipment. The following useful lives are applied:</font></p>
<div align="center" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">
<table style="width: 50%; border-collapse: collapse; font-size: 10pt; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top" bgcolor="#eeeeee">
<td align="left"><font size="2">Building</font></td>
<td align="right" width="50%"><font size="2">25 years</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Growing equipment</font></td>
<td align="right" width="50%"><font size="2">10 years</font></td>
</tr>
<tr valign="top" bgcolor="#eeeeee">
<td align="left"><font size="2">Computer equipment</font></td>
<td align="right" width="50%"><font size="2">5 years</font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Vehicles</font></td>
<td align="right" width="50%"><font size="2">5 years</font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font size="2">Furniture and fixtures</font></td>
<td align="right" bgcolor="#eeeeee" width="50%"><font size="2">10 years</font></td>
</tr>
</table>
</div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Gains or losses arising on the disposal of property, plant and equipment are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognized in profit or loss within other income or other expenses.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Assets in process are transferred to the appropriate asset class when available for use and depreciation of the assets commences at that point.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">An asset’s residual value, useful life and depreciation method are reviewed during each financial year and adjusted if appropriate. When parts of an item of equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.</font></p>
</div>
<div><font style="font-family: times new roman,times;" size="2"><font color="#8cbddc">vii) Assets held for sale<br style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" /></font>Assets and liabilities held for sale are no longer depreciated and are presented separately in the statement of financial position at the lower of their carrying amount and fair value less costs to sell. An asset is regarded as held for sale if its carrying amount will be recovered principally through a sale transaction, rather than through continuing use. For this to be the case, the asset must be available for immediate sale and its sale must be highly probable.</font></div>
<div><font style="font-family: times new roman,times;" size="2"><font color="#8cbddc">viii) Impairment of long-lived assets<br style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 10px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" /></font>Long-lived assets, including property, plant and equipment are reviewed each reporting period for indicators of impairment. Goodwill is assessed for indicators of impairment at each reporting date and is tested annually or whenever events or changes in circumstances indicate that the carrying amount of an asset exceeds its recoverable amount. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the cash-generating unit, or "CGU"). The recoverable amount of an asset or a CGU is the higher of its fair value, less costs of disposal, and its value in use. If the carrying amount of an asset exceeds its recoverable amount, an impairment charge is recognized immediately in profit or loss equal to the amount by which the carrying amount exceeds the recoverable amount. Except for goodwill, where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the lesser of the revised estimate of recoverable amount, and the carrying amount that would have been recorded had no impairment loss been recognized previously.</font></div>
<div><font style="font-family: times new roman,times;" size="2"><font style="font-family: times new roman,times;" size="2"><font color="#8cbddc">ix) Share-based payments</font><br /><font size="2">The Company measures equity settled share-based payments based on their fair value at the grant date and recognizes compensation expense in profit or loss over the vesting period based on the Company’s estimate of equity instruments that will eventually vest. Fair value for options is determined using the Black-Scholes pricing model and fair value for Restricted Share Units (RSUs) and Performance Share Units (PSUs) is determined using the Company’s share price at the grant date.</font></font></font>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Expected forfeitures are estimated at the date of the grant and subsequently adjusted if further information indicates actual forfeitures may vary from the original estimate. The impact of the revision of the original estimate is recognized in profit or loss such that the cumulative expenses reflects the revised estimate.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">For stock options granted to non-employees, the expense is measured at the fair value of the goods and services received except when the fair value cannot be estimated in which case it is measured at the fair value of the equity instrument granted.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Consideration paid by employees or non-employees on the exercise of options is recorded as share capital and the related share-based expense is transferred from share-based reserve to share capital.</font></p>
</div>
<div><font style="font-family: times new roman,times;" size="2"><font style="font-family: times new roman,times;" size="2"><font color="#8cbddc">x) Investments in associates</font><br /><font size="2">Associates are companies over which OHI has significant influence over and are accounted for under the equity method. Significant influence is presumed when the Company has an ownership interest greater than 20%, unless certain qualitative factors overcome this assumption. Conversely, where the Company has an ownership interest less than 20%, it is presumed that the Company does not have significant influence, unless certain qualitative factors overcome this assumption. In assessing significant influence and the ownership interest, potential voting rights that are currently exercisable are taken into consideration.</font></font></font>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Investments in associates are accounted for using the equity method and are initially recognized at cost, inclusive of transaction costs. The consolidated financial statements include the Company’s share of the income or loss and equity movement of equity accounted associates. In accordance with IFRS, the associate’s most recent available financial statements are used in the application of the equity method. Where the associate’s reporting period differs from the Company’s, the associate prepares financial information as of the same period end as the Company, unless it is impracticable to do so. Otherwise, the Company will adjust for its share of income and expenses and equity movement based on the associate’s most recently completed financial statements, adjusted for the effects of significant transactions. The Company does not recognize losses exceeding the carrying value of its interest in the associate.</font></p>
</div>
617000
84000
<div><font style="font-family: times new roman,times;" size="2"><font color="#8cbddc">vi) Goodwill<br style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" /></font>Goodwill represents the future economic benefits arising from a business combination that are not individually identified and separately recognized. Goodwill is carried at cost less accumulated impairment losses. Refer to Note 4(viii) for a description of impairment testing procedures.</font></div>
122000
89000
1228000
106000
55000
0.04
-47000
9000
927000
-32000
0
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border: black 0px solid;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left" width="70%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="11%"><font color="#ffffff">AUGUST 31, 2019</font></td>
<td align="center" bgcolor="#87b5cf" width="2%"><font color="#ffffff"> </font></td>
<td align="center" width="2%"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="11%"><font color="#ffffff">AUGUST 31, 2018</font></td>
<td align="left" bgcolor="#aeaaaa" width="2%"> </td>
</tr>
<tr>
<td align="left"> </td>
<td align="center" bgcolor="#e1eaed" width="1%"> </td>
<td align="center" bgcolor="#e1eaed" width="11%"> </td>
<td align="center" bgcolor="#e1eaed" width="2%"> </td>
<td align="center" width="2%"> </td>
<td align="right" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%"> </td>
<td align="right" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Additions</td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="11%"> 130,191</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="11%">56,929</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Acquisitions related to discontinued operations</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">-</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">(32</td>
<td align="left" bgcolor="#d6d6d6" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left">Net change in accounts payable and accrued liabilities related to purchases of PP&E</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%">(21,427</td>
<td align="left" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%">(462</td>
<td align="left" bgcolor="#d6d6d6" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left">Purchase of property, plant and equipment</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"> 108,764</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="2%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%">56,435</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
</table>
<div><font style="font-family: times new roman,times;" size="2"><font style="font-family: times new roman,times;" size="2"><font color="#8cbddc">xi) Intangible assets</font><br /><font size="2">Intangible assets are recorded at cost less accumulated amortization and impairment losses, if any. Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Amortization of definite life intangibles is provided on a straight-line basis over their estimated useful lives, which do not exceed the contractual period, if any, except for off-market supply agreements, where amortization is provided based on the actual output received versus the estimated output forecast to be received over the life of the agreement.</font></font></font>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The estimated useful lives, residual values, and amortization methods are reviewed at each year end, and any changes in estimates are accounted for prospectively. Intangible assets with an indefinite life or not yet available for use are not subject to amortization.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Research costs are expensed as incurred. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development to use or sell the asset. Other development expenditures are recognized as general and administrative expenses on the consolidated statement of income (loss) and comprehensive income (loss) as incurred.</font></p>
</div>
<div><font style="font-family: times new roman,times;" size="2"><font color="#8cbddc">xii) Earnings (loss) per share<br style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" /></font>Basic earnings (loss) per share is calculated by dividing net income (loss) attributable to common shareholders by the weighted-average number of shares outstanding during the period. Diluted earnings (loss) per share is calculated in a similar manner, but with adjustments to give effect to all dilutive potential common shares outstanding during the period. The dilutive effect of warrants, options, RSUs and PSUs is calculated using the treasury stock method. The if-converted method which assumes that all convertible debt has been converted if the debt is in-the-money is used to calculate the dilutive effect of convertible debt. Anti-dilutive effects of potential conversions of securities are ignored for this calculation.</font></div>
<div><font style="font-family: times new roman,times;" size="2"><font style="font-family: times new roman,times;" size="2"><font color="#8cbddc">xiii) Revenue recognition</font><br /><font size="2">Revenue from the direct sale of cannabis and cannabis oil for a fixed price is recognized when the Company transfers control of the good to the customer, which is at point of delivery for medical cannabis and recreational cannabis.</font></font></font>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Revenue includes excise taxes, which the Company pays as principal, but excludes duties and taxes collected on behalf of third parties. Revenue also includes the net consideration to which the Company expects to be entitled. Revenue is recognized to the extent that it is highly probable that a significant reversal will not occur. Therefore, revenue is stated net of expected price discounts, allowances for customer returns and certain promotional activities and similar items. Generally, payment of the transaction price is due within credit terms that are consistent with industry practices, with no element of financing.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Net revenue is revenue less excise taxes. Excise taxes are effectively a production tax which becomes payable when the product is removed from the Company’s premises and may or may not be directly related to the value of revenue depending on the province of sale. It is generally not included as a separate item on external invoices; increases in excise tax are not always passed on to the customer and where a customer fails to pay for product received the Company cannot reclaim the excise tax. The Company therefore recognizes excise tax, unless it regards itself as an agent of the regulatory authorities, as a cost to the Company.</font></p>
</div>
<div><font style="font-family: times new roman,times;" size="2"><font style="font-family: times new roman,times;" size="2"><font color="#8cbddc">xiv) Income taxes</font><br /><font size="2">The measurement of income taxes payable and deferred income tax assets and liabilities requires management to make judgments in the interpretation and application of the relevant tax laws. The actual amount of income taxes only becomes final upon filing and acceptance of the tax return by the relevant authorities, which occurs subsequent to the issuance of the consolidated financial statements.</font></font></font>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Income tax expense (recovery) in profit or loss is the sum of current and deferred tax as explained below.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Current tax is the expected income tax payable (recoverable) on the taxable income (loss) for the period, using tax rates enacted, or substantively enacted, as at the end of the reporting period. Current tax expense (recovery) included in profit or loss reflects the current tax for the reporting period, plus adjustments to the current tax of prior periods, less current tax recorded directly in other comprehensive income (loss) or equity.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Deferred taxes are accounted for under the liability method and are the taxes expected to be payable or recoverable on the temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable income. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable income will be available against which deductible temporary differences and unused tax losses and tax credits can be utilized. Deferred tax is calculated on a non-discounted basis, using enacted or substantively enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The carrying amounts of individual deferred tax assets are reviewed at the end of each reporting period but are only recognized for the proportion probable that sufficient taxable profits will be available for such assets to be recovered.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Deferred tax is not recognized for temporary differences related to the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; differences relating to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future; and, differences arising on the initial recognition of goodwill.</font></p>
</div>
<div><font style="font-family: times new roman,times;" size="2"><font color="#8cbddc">xv) Borrowing costs<br style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;" /></font>Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Other borrowing costs are expensed in the period in which they are incurred and reported in finance costs. No borrowing costs were capitalized during the periods presented.</font></div>
<div><font style="font-family: times new roman,times;" size="2"><font style="font-family: times new roman,times;" size="2"><font color="#8cbddc">xvi) Discontinued operations</font><br /><font size="2">A disposal group is presented as a discontinued operation if all of the following conditions are met: i) it is a component of the Company for which operations and cash flows can be clearly distinguished operationally and financially from the rest of the Company, ii) it represents a separate major line of business of operations that either has been disposed of or is classified as held for sale; or it is part of a single coordinated plan to dispose of a separate major line of business of operations.</font></font></font>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">Assets in a disposal group classified as held for sale are presented separately in the consolidated statements of financial position. Discontinued operations are presented separately from continuing operations in the consolidated statements of (loss) income and comprehensive (loss) income and consolidated statements of cash flows.</font></p>
</div>
96000
140000
9000
<div><font style="font-family: times new roman,times;" size="2"><font style="font-family: times new roman,times;" size="2"><font color="#8cbddc">xvii) Critical accounting estimates and judgments</font><br /><font size="2">The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimates are revised and in any future years affected.</font></font></font>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">The following are the estimates and judgments made by management in applying the accounting policies of the Company that have the most significant effect on the financial statements.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b><i>1) Biological assets and inventory<br /></i></b>Determination of the fair value of biological assets requires the Company to make a number of estimates, including estimating harvesting costs, selling costs, sales prices, wastage, oil conversion factor, expected yields, and post-harvest costs of the cannabis plant. In determining final inventory values, the Company estimates spoiled or expired inventory in determining net realizable value. Refer to Notes 8 and 9 for further information.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b><i>(2) Estimated useful lives of property, plant and equipment<br /></i></b>Amortization of property, plant and equipment requires estimates of useful lives, which are determined through the exercise of judgment. The assessment of any impairment of these assets is dependent upon estimates of recoverable amounts that consider factors such as economic and market conditions and the useful lives of assets.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b><i>(3) Share-based payments<br /></i></b>In determining the fair value of options and related expense, the Company makes such estimates as the expected life of the option, the volatility of the Company’s share price, the risk-free interest rate, and the rate of forfeitures. Refer to Note 13 for further information.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b><i>(4) Warrants<br /></i></b>In determining the value of warrants, the Company estimates the expected life of the warrant, the volatility of the Company’s share price and the risk-free interest rate.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b><i>(5) Compound Financial Instruments</i></b></font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2">In calculating the fair value allocation between the liability component and the equity component of the Company’s unsecured convertible debentures (compound instruments), the Company was required to make estimates and use judgment in determining an appropriate discount rate on the debentures to arrive at a fair value. The identification of convertible debentures’ components is based on interpretation of the substance of the contractual arrangement and therefore requires judgment from management. The separation of the components affects the initial recognition of interest on the liability component. The determination of fair value of the liability is also based on a number of assumptions, including contractual future cash flows, discount rates and the presence of any derivative financial instruments. Refer to Note 11 for further information.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b><i>(6) Goodwill<br /></i></b>Goodwill impairment testing requires management to make estimates in the impairment testing model. On an annual basis, the Company tests whether goodwill is impaired, based on an estimate of its recoverable amount.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b><i>(7) Assets held for sale<br /></i></b>Assets held for disposal and disposal groups are measured at the lower of their carrying amount and their fair value less costs to sell. The determination of the fair value less costs to sell includes the use of management estimates and assumptions that tend to be uncertain.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b><i>(8) Adult-use recreational cannabis revenue – provision for returns and price adjustments<br /></i></b>Government customers typically have a right of product return, and in some cases, the right to pricing adjustments for products that are subsequently discounted or sold for a lower price in another jurisdiction. The estimation of potential future returns and pricing adjustments includes the use of management estimates and assumptions that may not be certain given the evolving nature of the industry.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; margin-left: 78px; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font size="2"><b><i>(9) Investments in associates<br /></i></b>Management has applied significant judgment in the determination of whether the Company exerts significant influence with respect to its investments, which then allow the Company to account for its investments under the equity accounting method. Further, management has applied significant judgment and made use of management estimates and assumptions in determination and quantification of any impairment losses that may need to be recorded against its investments in associates.</font></p>
</div>
86000
880000
70000
1141000
-1141000
0
<div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" color="#8cbddc" size="4">25. OPERATIONS OF TRAUMA HEALING CENTERS</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Trauma Healing Centers, Incorporated (“THC”) offered a multi-disciplinary approach to post traumatic stress disorder treatment, chronic pain, trauma therapy, and medical cannabis as an alternative medicine.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">During the fourth quarter of fiscal year 2018, management decided to divest of operations of THC. Consequently, assets and liabilities allocable to THC were classified as a disposal group. Revenue and expenses, gains and losses relating to the discontinuation of THC have been eliminated from profit or loss from the Company’s continuing operations and are shown as a single line item in the statements of (loss) income and comprehensive (loss) income.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Operating income (loss) of THC and the loss from re-measurement of assets and liabilities classified as held for sale are summarized as follows up to the date of disposal (see below):</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
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<td align="center" bgcolor="#87b5cf" width="16%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2">FOR THE PERIOD</font></td>
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<td align="center" bgcolor="#87b5cf" width="16%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2">SEPTEMBER 1, 2018</font></td>
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<td align="center" bgcolor="#aeaaaa" width="16%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2">FOR THE YEAR ENDED</font></td>
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<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="16%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2">TO OCTOBER 16, 2018</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2"> </font></td>
<td align="center" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="16%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2">AUGUST 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Revenue</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Sales</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> 138</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">1,154</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Cost of sales</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2">54</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">537</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Gross margin from discontinued operations</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2">84</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">617</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Expenses</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   General and administrative</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2">75</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">941</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Sales and marketing</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">60</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Impairment of goodwill</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">1,228</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Total expenses</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2">75</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">2,229</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Investment income (expense)</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">1</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Income (loss) from operations</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> 9</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">(1,611</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Loss on remeasurement to fair value less costs to sell</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2">(47</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Loss on discontinued operations</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> (38</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">(1,611</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The carrying amounts of assets and liabilities in this disposal group are summarized as follows:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font style="font-family: times new roman,times;" color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="16%"><font style="font-family: times new roman,times;" color="#ffffff" size="2">AUGUST 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="2%"><font style="font-family: times new roman,times;" color="#ffffff" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Current Assets</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Cash</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> 102</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Accounts receivable</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">88</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Other current assets</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">9</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">199</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Property, plant and equipment</font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">89</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Goodwill</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">927</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Assets classified as held for sale</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> 1,215</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Current liabilities</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Accounts payable and accrued liabilities</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2"> 65</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Cash flows generated by THC for the reporting periods are summarized as follows:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#87b5cf" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" bgcolor="#87b5cf" width="16%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2">FOR THE PERIOD</font></td>
<td align="center" bgcolor="#87b5cf" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2"> </font></td>
<td align="center" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2"> </font></td>
<td align="center" bgcolor="#aeaaaa" width="1%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2"> </font></td>
<td align="center" bgcolor="#aeaaaa" width="16%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2"> </font></td>
<td align="left" bgcolor="#aeaaaa" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#87b5cf" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" bgcolor="#87b5cf" width="16%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2">SEPTEMBER 1, 2018</font></td>
<td align="center" bgcolor="#87b5cf" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2"> </font></td>
<td align="center" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2"> </font></td>
<td align="center" bgcolor="#aeaaaa" width="1%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2"> </font></td>
<td align="center" bgcolor="#aeaaaa" width="16%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2">FOR THE YEAR ENDED</font></td>
<td align="left" bgcolor="#aeaaaa" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="16%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2">TO OCTOBER 16, 2018</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2"> </font></td>
<td align="center" width="2%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="16%" nowrap="nowrap"><font style="font-family: times new roman,times;" color="#ffffff" size="2">AUGUST 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Operating activities</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> (35</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">(449</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Investing activites</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">(32</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Cash used by discounted operations</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="16%"><font style="font-family: times new roman,times;" size="2"> (35</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="16%"><font style="font-family: times new roman,times;" size="2">(481</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
</table>
<div align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2"></font> </div>
<div align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">On October 16, 2018, the Company sold THC to Harvest Medicine (HMED). HMED is a wholly-owned subsidiary of VIVO Cannabis Inc. (VIVO). The transaction resulted in HMED acquiring 100% of the issued and outstanding shares of THC from the Company. The total purchase price for the shares was $1,141 which was satisfied by the issuance of 864,678 common shares in the capital of VIVO at a share price of $1.32. This non-cash investing activity has been excluded from the statement of cash flows as it did not use or provide any cash. The derecognized assets and liabilities on October 16, 2018 were as follows:</font></div>
<div align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2"></font> </div>
<div align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;">
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">Derecognized assets and liabilities</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="22%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Cash</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" width="22%"><font style="font-family: times new roman,times;" size="2"> 96</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">   Accounts receivable</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="22%"><font style="font-family: times new roman,times;" size="2">140</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Other current assets</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="22%"><font style="font-family: times new roman,times;" size="2">9</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">   Property, plant and equipment</font></td>
<td align="left" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" bgcolor="#eeeeee" width="22%"><font style="font-family: times new roman,times;" size="2">86</font></td>
<td align="left" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Goodwill</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="22%"><font style="font-family: times new roman,times;" size="2">880</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">   Trade and other payables</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="22%"><font style="font-family: times new roman,times;" size="2">(70</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2">)</font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">   Net assets disposed</font></td>
<td align="left" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" width="22%"><font style="font-family: times new roman,times;" size="2"> 1,141</font></td>
<td align="left" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#eeeeee" width="22%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2">Fair value of consideration received</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%"><font style="font-family: times new roman,times;" size="2">$</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="22%"><font style="font-family: times new roman,times;" size="2"> 1,141</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">Gain/(loss) on disposal</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="22%"><font style="font-family: times new roman,times;" size="2">-</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="2%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
</table>
</div>
</div>
<div>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" bgcolor="#87b5cf" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#87b5cf" width="16%" nowrap="nowrap"><font color="#ffffff" size="2">FOR THE PERIOD</font></td>
<td align="center" bgcolor="#87b5cf" width="2%" nowrap="nowrap"><font color="#ffffff" size="2"> </font></td>
<td align="center" width="2%" nowrap="nowrap"><font color="#ffffff" size="2"> </font></td>
<td align="center" bgcolor="#aeaaaa" width="1%" nowrap="nowrap"><font color="#ffffff" size="2"> </font></td>
<td align="center" bgcolor="#aeaaaa" width="16%" nowrap="nowrap"><font color="#ffffff" size="2"> </font></td>
<td align="left" bgcolor="#aeaaaa" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" bgcolor="#87b5cf" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#87b5cf" width="16%" nowrap="nowrap"><font color="#ffffff" size="2">SEPTEMBER 1, 2018</font></td>
<td align="center" bgcolor="#87b5cf" width="2%" nowrap="nowrap"><font color="#ffffff" size="2"> </font></td>
<td align="center" width="2%" nowrap="nowrap"><font color="#ffffff" size="2"> </font></td>
<td align="center" bgcolor="#aeaaaa" width="1%" nowrap="nowrap"><font color="#ffffff" size="2"> </font></td>
<td align="center" bgcolor="#aeaaaa" width="16%" nowrap="nowrap"><font color="#ffffff" size="2">FOR THE YEAR ENDED</font></td>
<td align="left" bgcolor="#aeaaaa" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="16%" nowrap="nowrap"><font color="#ffffff" size="2">TO OCTOBER 16, 2018</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="2%" nowrap="nowrap"><font color="#ffffff" size="2"> </font></td>
<td align="center" width="2%" nowrap="nowrap"><font color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%" nowrap="nowrap"><font color="#ffffff" size="2"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="16%" nowrap="nowrap"><font color="#ffffff" size="2">AUGUST 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaed" width="16%"><font size="2"> </font></td>
<td align="center" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="center" width="2%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" width="16%"><font size="2"> </font></td>
<td align="center" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Revenue</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="16%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="16%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="16%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="16%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">   Sales</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font size="2"> 138</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2">$</font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font size="2">1,154</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">   Cost of sales</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="16%"><font size="2">54</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"><font size="2">537</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font
size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">   Gross margin from discontinued operations</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="16%"><font size="2">84</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"><font size="2">617</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Expenses</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="16%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="16%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="16%"><font size="2"> </font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="16%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">   General and administrative</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font size="2">75</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font size="2">941</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">   Sales and marketing</font></td>
<td align="left" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font size="2">-</font></td>
<td align="left" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font size="2">60</font></td>
<td align="left" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">   Impairment of goodwill</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="16%"><font size="2">-</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"><font size="2">1,228</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font
size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Total expenses</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="16%"><font size="2">75</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"><font size="2">2,229</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">   Investment income (expense)</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="16%"><font size="2">-</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"><font size="2">1</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Income (loss) from operations</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="16%"><font size="2"> 9</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"><font size="2">(1,611</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font size="2">)</font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Loss on remeasurement to fair value less costs to sell</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="16%"><font size="2">(47</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"><font size="2">)</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"><font size="2">-</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr>
<td align="left"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#e1eaed" width="2%"><font size="2"> </font></td>
<td align="right" width="2%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="1%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="16%"><font size="2"> </font></td>
<td align="right" bgcolor="#d6d6d6" width="2%"><font size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left"><font size="2">Loss on discontinued operations</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="16%"><font size="2"> (38</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"><font size="2">)</font></td>
<td align="left" width="2%"><font size="2"> </font></td>
<td align="left" style="border-bottom:
#000000 3px double;" bgcolor="#d6d6d6" width="1%"><font size="2">$</font></td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="16%"><font size="2">(1,611</font></td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%"><font size="2">)</font></td>
</tr>
</table>
</div>
<div>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="16%"><font color="#ffffff">AUGUST 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="2%"><font color="#ffffff"> </font></td>
</tr>
<tr valign="top">
<td align="left">Current Assets</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="16%"> </td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">   Cash</td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="16%"> 102</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">   Accounts receivable</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="16%">88</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">   Other current assets</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%">9</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="16%">199</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Property, plant and equipment</td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="16%">89</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Goodwill</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%">927</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Assets classified as held for sale</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="16%"> 1,215</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Current liabilities</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">   Accounts payable and accrued liabilities</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="16%"> 65</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
</table>
</div>
<div>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" bgcolor="#87b5cf" width="1%"> </td>
<td align="center" bgcolor="#87b5cf" width="16%" nowrap="nowrap"><font color="#ffffff">FOR THE PERIOD</font></td>
<td align="center" bgcolor="#87b5cf" width="2%" nowrap="nowrap"><font color="#ffffff"> </font></td>
<td align="center" width="2%" nowrap="nowrap"><font color="#ffffff"> </font></td>
<td align="center" bgcolor="#aeaaaa" width="1%" nowrap="nowrap"><font color="#ffffff"> </font></td>
<td align="center" bgcolor="#aeaaaa" width="16%" nowrap="nowrap"><font color="#ffffff"> </font></td>
<td align="left" bgcolor="#aeaaaa" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" bgcolor="#87b5cf" width="1%"> </td>
<td align="center" bgcolor="#87b5cf" width="16%" nowrap="nowrap"><font color="#ffffff">SEPTEMBER 1, 2018</font></td>
<td align="center" bgcolor="#87b5cf" width="2%" nowrap="nowrap"><font color="#ffffff"> </font></td>
<td align="center" width="2%" nowrap="nowrap"><font color="#ffffff"> </font></td>
<td align="center" bgcolor="#aeaaaa" width="1%" nowrap="nowrap"><font color="#ffffff"> </font></td>
<td align="center" bgcolor="#aeaaaa" width="16%" nowrap="nowrap"><font color="#ffffff">FOR THE YEAR ENDED</font></td>
<td align="left" bgcolor="#aeaaaa" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="16%" nowrap="nowrap"><font color="#ffffff">TO OCTOBER 16, 2018</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="2%" nowrap="nowrap"><font color="#ffffff"> </font></td>
<td align="center" width="2%" nowrap="nowrap"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%" nowrap="nowrap"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="16%" nowrap="nowrap"><font color="#ffffff">AUGUST 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Operating activities</td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="16%"> (35</td>
<td align="left" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" width="2%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="16%">(449</td>
<td align="left" bgcolor="#d6d6d6" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left">Investing activites</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="16%">-</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="2%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="16%">(32</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left">Cash used by discounted operations</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="16%"> (35</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" width="2%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="16%">(481</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%">)</td>
</tr>
</table>
</div>
<div>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Derecognized assets and liabilities</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="left" bgcolor="#eeeeee" width="22%"> </td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">   Cash</td>
<td align="left" width="1%">$</td>
<td align="right" width="22%"> 96</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">   Accounts receivable</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="22%">140</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">   Other current assets</td>
<td align="left" width="1%"> </td>
<td align="right" width="22%">9</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">   Property, plant and equipment</td>
<td align="left" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" bgcolor="#eeeeee" width="22%">86</td>
<td align="left" bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">   Goodwill</td>
<td align="left" width="1%"> </td>
<td align="right" width="22%">880</td>
<td align="left" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">   Trade and other payables</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="22%">(70</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left">   Net assets disposed</td>
<td align="left" width="1%">$</td>
<td align="right" width="22%"> 1,141</td>
<td align="left" width="2%"> </td>
</tr>
<tr>
<td bgcolor="#eeeeee"> </td>
<td bgcolor="#eeeeee" width="1%"> </td>
<td bgcolor="#eeeeee" width="22%"> </td>
<td bgcolor="#eeeeee" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Fair value of consideration received</td>
<td align="left" style="border-bottom: #000000 1px solid;" width="1%">$</td>
<td align="right" style="border-bottom: #000000 1px solid;" width="22%"> 1,141</td>
<td align="left" style="border-bottom: #000000 1px solid;" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee">Gain/(loss) on disposal</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="22%">-</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#eeeeee" width="2%"> </td>
</tr>
</table>
</div>
41049000
1070000
11727000
16690000
11562000
0
1250000
8055000
-1704000
88000
1061000
1061000
16428572
115000
iso4217:CADogi:Gram
1.00
1.52
1.52
9000
-1611000
<div>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="1%"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="11%"><font color="#ffffff">AUGUST 31, 2019</font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#87b5cf" width="2%"><font color="#ffffff"> </font></td>
<td align="center" width="1%"> </td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="1%"><font color="#ffffff"> </font></td>
<td align="center" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="11%"><font color="#ffffff">AUGUST 31, 2018</font></td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#aeaaaa" width="2%"><font color="#ffffff"> </font></td>
</tr>
<tr valign="top">
<td align="left">Trade receivables</td>
<td align="left" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" bgcolor="#e1eaed" width="11%"> 11,900</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" bgcolor="#d6d6d6" width="11%">817</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Harmonized sales taxes receivable</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">4,741</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">2,526</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Accrued investment income</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">-</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">241</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Government programs</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">168</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">80</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Other accounts receivable</td>
<td align="left" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" bgcolor="#e1eaed" width="11%">-</td>
<td align="left" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="left" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" bgcolor="#d6d6d6" width="11%">96</td>
<td align="left" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
<tr valign="top">
<td align="left">Less: Provision for doubtful accounts</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="11%">(268</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#e1eaed" width="2%">)</td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="1%"> </td>
<td align="right" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="11%">(24</td>
<td align="left" style="border-bottom: #000000 1px solid;" bgcolor="#d6d6d6" width="2%">)</td>
</tr>
<tr valign="top">
<td align="left"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="11%"> 16,541</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#e1eaed" width="2%"> </td>
<td align="left" width="1%"> </td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="1%">$</td>
<td align="right" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="11%">3,736</td>
<td align="left" style="border-bottom: #000000 3px double;" bgcolor="#d6d6d6" width="2%"> </td>
</tr>
</table>
</div>
10471000
7980000
0
3629000
1138000
5653000
-2327000
0001620737ifrs-full:AllowanceForCreditLossesMember2019-08-31
-10708000
0001620737ifrs-full:AllowanceForCreditLossesMember2018-08-31
-8604000
0001620737ifrs-full:AllowanceForCreditLossesMember2017-08-31
-132000
0001620737ifrs-full:AllowanceForCreditLossesMember2018-09-012019-08-31
-2723000
-619000
0001620737ifrs-full:AllowanceForCreditLossesMember2017-09-012018-08-31
-7797000
675000
0001620737ogi:ShareIssuanceCostsMember2019-08-31
0
0001620737ogi:ShareIssuanceCostsMember2018-08-31
-1657000
0001620737ogi:ShareIssuanceCostsMember2017-08-31
0
0001620737ogi:ShareIssuanceCostsMember2018-09-012019-08-31
-1657000
0
0001620737ogi:ShareIssuanceCostsMember2017-09-012018-08-31
1657000
0
0001620737ogi:PropertyPlanAndEquipmentMember2019-08-31
4983000
0001620737ogi:PropertyPlanAndEquipmentMember2018-08-31
1275000
0001620737ogi:PropertyPlanAndEquipmentMember2017-08-31
132000
0001620737ogi:PropertyPlanAndEquipmentMember2018-09-012019-08-31
3708000
0
0001620737ogi:PropertyPlanAndEquipmentMember2017-09-012018-08-31
1143000
0
0001620737ogi:BiologicalAssetMember2019-08-31
961000
0001620737ogi:BiologicalAssetMember2018-08-31
3307000
0001620737ogi:BiologicalAssetMember2017-08-31
0
0001620737ogi:BiologicalAssetMember2018-09-012019-08-31
-2346000
0
0001620737ogi:BiologicalAssetMember2017-09-012018-08-31
3307000
0
0001620737ogi:InventoryMember2019-08-31
15200000
0001620737ogi:InventoryMember2018-08-31
10385000
0001620737ogi:InventoryMember2017-08-31
0
0001620737ogi:InventoryMember2018-09-012019-08-31
4815000
0
0001620737ogi:InventoryMember2017-09-012018-08-31
10385000
0
0001620737ogi:UnsecuredConvertibleDebenturesMember2018-08-31
3306000
0001620737ogi:UnsecuredConvertibleDebenturesMember2019-08-31
0
0001620737ogi:UnsecuredConvertibleDebenturesMember2017-08-31
0
0001620737ogi:UnsecuredConvertibleDebenturesMember2018-09-012019-08-31
108000
3414000
0001620737ogi:UnsecuredConvertibleDebenturesMember2017-09-012018-08-31
-1353000
-4659000
0001620737ifrs-full:OtherTemporaryDifferencesMember2019-08-31
35000
0001620737ifrs-full:OtherTemporaryDifferencesMember2018-08-31
-32000
0001620737ifrs-full:OtherTemporaryDifferencesMember2017-08-31
0
0001620737ifrs-full:OtherTemporaryDifferencesMember2018-09-012019-08-31
67000
0
0001620737ifrs-full:OtherTemporaryDifferencesMember2017-09-012018-08-31
-32000
0
15819000
2686000
12010000
1467000
3809000
1219000
During the year ended August 31, 2019, the Company had 2 customers that individually represented more than 10% of the Company’s net revenue.
4733000
1289000
879635
20513000
-836000
-42000
<div>
<div><font style="font-family: times new roman,times;" size="2"><font style="font-family: times new roman,times;" size="2"><font color="#8cbddc">NEW STANDARDS AND INTERPRETATIONS ADOPTED</font><br /><font style="font-family: times new roman,times;" color="#8cbddc" size="2">New or amended standards effective September 1, 2018</font><br /><font style="font-family: times new roman,times;" size="2">The Company has adopted the following new or amended IFRS standards for the annual period beginning on September 1, 2018.</font></font></font>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">i) IFRS 2 – Share-based Payments</font><br /><font style="font-family: times new roman,times;" size="2">The amendment clarifies how to account for the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments, share-based payment transactions with a net settlement feature and a modification to the terms and conditions that changes the classification of the transactions. The amendment is effective for annual periods beginning on or after January 1, 2018. This was effective for the Company beginning September 1, 2018.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The adoption of the new standard did not have a material impact on its consolidated financial statements.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">ii) IFRS 9 – Financial Instruments</font><br /><font style="font-family: times new roman,times;" size="2">A finalized version of IFRS 9, which contains accounting requirements for financial instruments, replacing IAS 39 Financial Instruments: Recognition and Measurement. The standard contains requirements in the following areas: classification and measurement, impairment, hedge accounting and de-recognition.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Classification and measurement</font><br /><font style="font-family: times new roman,times;" size="2">Under IFRS 9, financial assets are initially measured at fair value plus, in the case of a financial asset not at fair value through profit and loss (“FVTPL”), transaction costs.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Financial assets are subsequently measured at:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr>
<td align="center" valign="top" width="5%"><font style="font-family: times new roman,times;" color="#8cbddc" size="2">i)</font></td>
<td>
<p align="justify"><font style="font-family: times new roman,times;" size="2">FVTPL;</font></p>
</td>
</tr>
<tr>
<td align="center" width="5%"><font style="font-family: times new roman,times;" color="#8cbddc" size="2"> </font></td>
<td><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font style="font-family: times new roman,times;" color="#8cbddc" size="2">ii)</font></td>
<td>
<p align="justify"><font style="font-family: times new roman,times;" size="2">amortized cost;</font></p>
</td>
</tr>
<tr>
<td align="center" width="5%"><font style="font-family: times new roman,times;" color="#8cbddc" size="2"> </font></td>
<td><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font style="font-family: times new roman,times;" color="#8cbddc" size="2">iii)</font></td>
<td>
<p align="justify"><font style="font-family: times new roman,times;" size="2">debt measured at fair value through other comprehensive income (“FVOCI”);</font></p>
</td>
</tr>
<tr>
<td align="center" width="5%"><font style="font-family: times new roman,times;" color="#8cbddc" size="2"> </font></td>
<td><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font style="font-family: times new roman,times;" color="#8cbddc" size="2">iv)</font></td>
<td>
<p align="justify"><font style="font-family: times new roman,times;" size="2">equity investments designated at FVOCI; or</font></p>
</td>
</tr>
<tr>
<td align="center" width="5%"><font style="font-family: times new roman,times;" color="#8cbddc" size="2"> </font></td>
<td><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font style="font-family: times new roman,times;" color="#8cbddc" size="2">v)</font></td>
<td>
<p align="justify"><font style="font-family: times new roman,times;" size="2">financial instruments designated at FVTPL.</font></p>
</td>
</tr>
</table>
<p align="left" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The classification is based on whether the contractual cash flow characteristics represent “solely payment of principal and interest” (the “SPPI test”) as well as the business model under which the financial assets are managed. Financial assets are required to be reclassified only when the business model under which they are managed has changed. All reclassifications are to be applied prospectively from the reclassification date.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Debt investments are recorded at amortized cost for financial assets that are held within a business model with the objective to hold the financial assets in order to collect contractual cash flows that meet the SPPI test.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The assessment of the Company’s business models for managing the financial assets was made as of the date of initial application of September 1, 2018. The assessment of whether contractual cash flows on debt instruments meet the SPPI test was made based on the facts and circumstances as at the initial recognition of the financial assets.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Consistent with IAS 39, all financial liabilities held by the Company under IFRS 9 are initially measured at fair value and subsequently measured at amortized cost.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The following table summarizes the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of the Company’s financial assets and financial liabilities:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="25%"><font style="font-family: times new roman,times;" size="2">IAS 39 CLASSIFICATION</font></td>
<td align="right" style="border-bottom: #000000 1px solid;" width="25%"><font style="font-family: times new roman,times;" size="2">IFRS 9 CLASSIFICATION</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="25%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="25%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">Cash and cash equivalents</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font style="font-family: times new roman,times;" size="2">Loans and receivables</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font style="font-family: times new roman,times;" size="2">Amortized cost</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="25%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="25%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">Short-term investments excluding marketable securities</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font style="font-family: times new roman,times;" size="2">Held to maturity</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font style="font-family: times new roman,times;" size="2">Amortized cost</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="25%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="25%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">Accounts receivable</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font style="font-family: times new roman,times;" size="2">Loans and receivables</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font style="font-family: times new roman,times;" size="2">Amortized cost</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="25%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="25%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">Loan receivable</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font style="font-family: times new roman,times;" size="2">N/A</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font style="font-family: times new roman,times;" size="2">Amortized cost</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="25%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="25%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">Marketable securities</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font style="font-family: times new roman,times;" size="2">N/A</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font style="font-family: times new roman,times;" size="2">FVTPL</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="25%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="25%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">Accounts payable and accrued liabilities</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font style="font-family: times new roman,times;" size="2">Other liabilities</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font style="font-family: times new roman,times;" size="2">Amortized cost</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="25%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="25%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">Long-term debt</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font style="font-family: times new roman,times;" size="2">Other liabilities</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font style="font-family: times new roman,times;" size="2">Amortized cost</font></td>
</tr>
<tr>
<td align="left"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="25%"><font style="font-family: times new roman,times;" size="2"> </font></td>
<td align="right" width="25%"><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr valign="top">
<td align="left" bgcolor="#eeeeee"><font style="font-family: times new roman,times;" size="2">Unsecured convertible debentures</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font style="font-family: times new roman,times;" size="2">Other liabilities</font></td>
<td align="right" bgcolor="#eeeeee" width="25%"><font style="font-family: times new roman,times;" size="2">Amortized cost</font></td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The adoption of IFRS 9 did not have an impact on the Company’s measurement of financial assets and liabilities.</font></p>
<div align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Impairment</font><br /><font style="font-family: times new roman,times;" size="2">Under IFRS 9, the Company is required to apply an expected credit loss (“ECL”) model to all debt financial assets not held at FVTPL, where credit losses that are expected to transpire in future years are provided for, irrespective of whether a loss event has occurred or not as at the balance sheet date. For trade receivables, the Company has applied the simplified approach under IFRS 9 and has calculated ECLs based on lifetime expected credit losses taking into consideration historical credit loss experience and financial factors specific to the debtors and general economic conditions. The Company has assessed the impairment of its amounts receivable using the ECL model, and no difference was noted. As a result, no impairment loss has been recognized upon transition and at September 1, 2018.</font></div>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">iii) IFRS 15 – Revenue from Contracts with Customers</font><br /><font style="font-family: times new roman,times;" size="2">In May 2014, the IASB issued IFRS 15 – Revenue from Contracts with Customer (“IFRS 15”), which provides a comprehensive framework for recognition, measurement and disclosure of revenue from contracts with customers, excluding contracts within the scope of the standards on leases, insurance contracts and financial instruments.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">The Company has applied IFRS 15 retrospectively but determined that there is no change to the comparative periods or transitional adjustments required as a result of the adoption of this standard. The pattern and timing of revenue recognition under the new standard is consistent with prior year practice. The Company’s accounting policy for revenue recognition under IFRS 15 is as follows:</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">To determine the amount and timing of revenue to be recognized, the Company follows a 5-step process:</font></p>
<table style="widows: 2; text-transform: none; text-indent: 0px; width: 100%; border-collapse: collapse; font-family: 'times new roman'; orphans: 2; letter-spacing: normal; font-size: 10pt; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; border-color: black;" border="0" cellspacing="0" cellpadding="0">
<tr>
<td align="center" valign="top" width="5%"><font style="font-family: times new roman,times;" color="#8cbddc" size="2">1.</font></td>
<td>
<p align="justify"><font style="font-family: times new roman,times;" size="2">Identifying the contract with a customer</font></p>
</td>
</tr>
<tr>
<td align="center" width="5%"><font style="font-family: times new roman,times;" color="#8cbddc" size="2"> </font></td>
<td><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font style="font-family: times new roman,times;" color="#8cbddc" size="2">2.</font></td>
<td>
<p align="justify"><font style="font-family: times new roman,times;" size="2">Identifying the performance obligations</font></p>
</td>
</tr>
<tr>
<td align="center" width="5%"><font style="font-family: times new roman,times;" color="#8cbddc" size="2"> </font></td>
<td><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font style="font-family: times new roman,times;" color="#8cbddc" size="2">3.</font></td>
<td>
<p align="justify"><font style="font-family: times new roman,times;" size="2">Determining the transaction price</font></p>
</td>
</tr>
<tr>
<td align="center" width="5%"><font style="font-family: times new roman,times;" color="#8cbddc" size="2"> </font></td>
<td><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font style="font-family: times new roman,times;" color="#8cbddc" size="2">4.</font></td>
<td>
<p align="justify"><font style="font-family: times new roman,times;" size="2">Allocating the transaction price to the performance obligations</font></p>
</td>
</tr>
<tr>
<td align="center" width="5%"><font style="font-family: times new roman,times;" color="#8cbddc" size="2"> </font></td>
<td><font style="font-family: times new roman,times;" size="2"> </font></td>
</tr>
<tr>
<td align="center" valign="top" width="5%"><font style="font-family: times new roman,times;" color="#8cbddc" size="2">5.</font></td>
<td>
<p align="justify"><font style="font-family: times new roman,times;" size="2">Recognizing revenue when/as performance obligation(s) are satisfied</font></p>
</td>
</tr>
</table>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Revenue from the direct sale of cannabis and cannabis oil for a fixed price is recognized when the Company transfers control of the good to the customer, which is at point of delivery for medical cannabis and recreational cannabis.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Revenue includes excise taxes, which the Company pays as principal, but excludes duties and taxes collected on behalf of third parties. Revenue also includes the net consideration to which the Company expects to be entitled. Revenue is recognized to the extent that it is highly probable that a significant reversal will not occur. Therefore, revenue is stated net of expected price discounts, allowances for customer returns and certain promotional activities and similar items. Generally, payment of the transaction price is due within credit terms that are consistent with industry practices, with no element of financing.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">Net revenue is revenue less excise taxes. Excise taxes are effectively a production tax which becomes payable when the product is removed from the Company’s premises and may or may not be directly related to the value of revenue depending on the province of sale. It is generally not included as a separate item on external invoices; increases in excise tax are not always passed on to the customer and where a customer fails to pay for product received the Company cannot reclaim the excise tax. The Company therefore recognizes excise tax, unless it regards itself as an agent of the regulatory authorities, as a cost to the Company.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" color="#8cbddc" size="2">New or amended standards issued but not yet effective</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">IFRS 16 – Leases</font><br /><font style="font-family: times new roman,times;" size="2">In January 2016, the IASB issued IFRS 16 – Leases (“IFRS 16”), which establishes principles for the recognition, measurement, presentation and disclosure of leases, with the objective of ensuring that lessees and lessors provide relevant information that faithfully represents those transactions. IFRS 16, which replaces IAS 17 Leases, brings most leases onto the statement of financial position for lessees eliminating the distinction between operating and finance leases. IFRS 16 introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than twelve months, unless the underlying asset is of low value. A lessee is required to recognize a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. The right-of-use asset is treated similarly to other non-financial assets and depreciated accordingly, and the liability accrues interest. The lease liability is initially measured at the present value of the lease payments payable over the lease term, discounted at the rate implicit in the lease or an entity's incremental borrowing rate if the implicit rate cannot be readily determined.</font></p>
<p align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">A lessee shall apply IFRS 16 to its leases either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying IFRS 16 being recognized at the date of initial application. Lessees are permitted to make an election for leases with a term of 12 months or less, or where the underlying asset is of low value and not recognize lease assets and lease liabilities. The expense associated with these leases can be recognized on a straight-line basis over the lease term or on another systematic basis.</font></p>
<div align="justify" style="widows: 2; text-transform: none; font-style: normal; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: 400; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial;"><font style="font-family: times new roman,times;" size="2">IFRS 16 applies to annual reporting periods beginning on or after January 1, 2019. This will be effective for the Company beginning September 1, 2019. The Company reviewed its current and past leases. Reclassification of leases for office space, manufacturing equipment, and certain computer hardware will result in the establishment of additional right-of-use assets and lease liabilities on the statement of financial position, as well as changes in the timing and presentation of lease-related expenses on the statement of income. The Company is finalizing its evaluation of the effect of this standard on the consolidated financial statements but expects there will be no material impact.</font></div>
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