7. Mortgage payable
On July 10, 2020,
the Company obtained a mortgage loan in the amount of $3,562,500 (the “Mortgage”) for the purpose of purchasing land and a
77,000 square-foot building located in Indianapolis, Indiana (the “Property”). The Mortgage is collateralized by a first charge
over the Property. As part of the financing the Company incurred $17,194 of costs and fees from the lender that are capitalized and recorded
as finance costs over the life of the Mortgage.
The Mortgage bears
interest at 2.85% plus a minimum rate of 1-month LIBOR, subject to a LIBOR floor of 0.25%. The Mortgage requires quarterly interest payments,
which commenced on October 1, 2020, with the principal amount due at maturity on January 10, 2022.
For the six months
ended June 30, 2021, the Company recorded $54,605 in interest costs (June 30, 2020 — $nil) which have been capitalized within
property, in development, and the Company recorded $5,662 in amortization of debt issuance costs (June 30, 2020 — $nil) through
finance costs.
The Mortgage is guaranteed
by a stockholder of the Company (the “Guarantor”). As of June 30, 2021, the Guarantor was in compliance with this covenant.
See Note 14 regarding the repayment and release of the Mortgage.
8. Stockholders’
equity
Common
Stock
The
Company is authorized to issue 430,000,000 shares of Common Stock, with a par value of $0.0001 per share,as well as 20,000,000 of shares
of preferred stock, with a par value of $0.0001 per share (“Preferred Stock”). The figures below are presented giving
effect to a retroactive application of the Business Combination which resulted in a conversion of the previous Point Biopharma Inc. common
shares to shares of Common Stock of the Company at a conversion ratio of approximately 3.59:1. The par value of previous Point Biopharma
Inc. common shares was $0.001. See Note 3 for additional details.
During
the six months ended June 30, 2021, the Company issued 2,934,369 shares of Common Stock of which 2,869,799 shares were issued in
connection with the exercise of warrants and 64,570 shares were issued in connection with the exercise of stock options issued to a non-employee
consultant, each at an exercise price of approximately $6.97 per share resulting in total cash proceeds
of $20,450,000.
As of June 30, 2021,
the number of total issued and outstanding shares of Common Stock is 90,121,794 (December 31, 2020 – 54,647,656). As of June 30,
2021, there were nil issued and outstanding shares of Preferred Stock (December 31, 2020 — nil).
Each share of Common
Stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are
entitled to receive dividends, if any, as may be declared by the Company’s board of directors. During the six months ended
June 30, 2021, no cash dividends had been declared or paid by the Company (June 30, 2020 — $nil).
The Company’s
board of directors has the authority to issue shares of Preferred Stock from time to time on terms it may determine, to divide shares
of Preferred Stock into one or more series and to fix the designations, preferences, privileges, and restrictions of Preferred Stock,
including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preference, sinking fund terms, and the
number of shares constituting any series or the designation of any series to the fullest extent permitted by the Delaware General Corporation
Law. During the six months ended June 20, 2021, no shares of Preferred Stock have been issued by the Company (June 30, 2020 - $nil).
9. Stock-based compensation
In March
2020, the board of directors of POINT Biopharma Inc. approved the 2020 Equity Incentive Plan (the “2020 EIP”). The 2020 EIP
provided for the granting of incentive and nonqualified stock options, stock appreciation rights, restricted stock units, performance
awards and other stock-based awards to employees, directors, and consultants of POINT Biopharma Inc. Effective as of June 30, 2021, in
connection with the Business Combination, the Company’s board of directors adopted the POINT Biopharma Global Inc. 2021 Equity Incentive
Plan (the “2021 EIP”) to replace the 2020 EIP and allow the Company to grant equity and equity-based incentive awards to officers,
employees, non-employee directors and consultants of the Company. Upon the closing of the Business Combination, the Company assumed the
outstanding equity awards under the 2020 EIP and each outstanding option to acquire common shares of Point