Warrants

9 Months Ended

Apr. 30, 2021

Note 12 - Warrants

As of July 31, 2020, the Company had 567,553 warrants outstanding. On August 4, 2020, the Company initially issued 30,612,240 warrants in the aggregate pursuant to the Private Placement (see Note 9 - Stockholders’ Equity, Sale of common stock in a private placement (PIPE), net of fees and exercise of warrants); and 29,592,825 additional warrants as a result, of an Interim Reset Date on September 28, 2020, and Second Trigger Date on October 12, 2020, and the additional warrants were issued, and the exercise price was adjusted. The fair value of the PIPE warrants is presented as a derivative liability and marked to market at each reporting period (see Note 8 – Derivative Liabilities).

The following is a table of outstanding warrants issued in connection with the PIPE deal during the nine months ended April 30, 2021:

	Initial Exercise Price		Initial Warrants Issued		Additional Warrants Issued		Reset Exercise Price		Outstanding Warrants as of April 30, 2021
Series A Warrants	$	0.392		5,102,040		5,112,463	$	0.196		10,214,503
Series B Warrants	$	0.392		15,306,120		15,337,389	$	0.196		30,643,509
Series C Warrants	$	0.539		10,204,080		9,142,973	$	0.281		19,347,053
Total Warrants from PIPE deal				30,612,240		29,592,825				60,205,065

On September 28, 2020, the Interim Reset Date, 5,662,190 Series D Warrants were issued and exercised at $0.001 per share; and on October 12, 2020, the Second Trigger Date on October 12, 2020, 3,480,783 Series D Warrants were issued and exercised at $0.001 per share, for an aggregate of 9,142,973 warrants issued and exercised.

On November 17, 2020, the Company issued shares of common stock at a price of $0.18 (see Note 9) which triggered a reset provision on certain warrant holders’ previously granted warrants whereby their exercise price was reduced to $0.18 and the agreement entitled them to an additional 4,183,575 shares of common stock upon exercise.

In connection with the issuance of convertible notes payable, the Company granted warrants to purchase 2,007,917 shares of common stock at $0.60 per share. The value of the warrants was recorded at fair value as a discount to the note.

A summary of the Company’s warrant activities is as follows:

	Number of Warrants			Weighted Average Exercise Price per Share		Weighted Average Remaining Life (Years)		Aggregate Intrinsic Value
Outstanding - July 31, 2020		567,553		$	2.50		2.20	$	—
Issued		71,355,955			0.21		5		—
Exercised		(9,142,973	)		0.001		5		—
Expired		—			—		—		—
Outstanding – April 30, 2021		62,780,535		$	0.24		4.68	$	2,665,819

GENEREX BIOTECHNOLOGY CORP 10-Q