2007 annual report aveiro investment corp. - First West Properties

OUTSTANDING SHARE DATA
Common Shares
The Company is authorized to issue an unlimited number of
Common Shares, an unlimited number of Class “B” voting
common shares, an unlimited number of Class “C” non-voting
common shares and an unlimited number of Preferred Shares, of
which 13,480,000 Common Shares were outstanding as at June
30, 2007. As at the date hereof, there are 17,780,003 Common
Shares outstanding.
Stock Options
The Board of Directors of the Company may from time to time, in
its discretion, grant to directors, offi cers, employees, consultants,
technical consultants to the Corporation and other persons or
entities whose efforts it believes will assist the Corporation, nontransferable
options to purchase Common Shares, provided that
the number of Common Shares reserved for issuance will not
exceed 10% of the issued and outstanding Common Shares. At
June 30, 2007, there were options outstanding to acquire 1,345,000
Common Shares, of which options to acquire 446,668 Common
Shares were exercisable. The weighted average exercise price of
the options is $1.00 per Common Share. Options vest and expire
as set forth in the option agreements as determined at the time of
granting of the option by the board of directors. The exercise price
at the date of granting approximates fair market value. There were
no options outstanding at June 30, 2006.
Warrants
In conjunction with the Company’s private placement of 11,430,000
Common Shares, 239,067 Common Share purchase warrants
(“Compensation Warrants”) were issued to employees and agents
of the Company as partial compensation for soliciting Common
Shares of the Company. These Compensation Warrants vest
immediately and expire December 31, 2007. At June 30, 2007 there
were 239,067 Compensation Warrants outstanding to acquire
239,067 Common Shares. The exercise price of the Compensation
Warrants is $1.00 per share.
INTERNAL CONTROLS
The Company has implemented a system of internal controls that
it believes adequately protects the assets of the Company and
is appropriate for the nature of its business and the size of its
operations. These internal controls include disclosure controls
and procedures designed to ensure that information required to
be disclosed by the Company is accumulated and communicated
to management as appropriate to allow timely decisions
regarding required disclosure. The Company’s Chairman and
President have concluded, based on their evaluation, that the
Company’s disclosure controls and procedures are effective to
provide reasonable assurance that material information related
to the Company is made known to them and have been operating
effectively during 2007. It should be noted that while the
Company’s Chairman and President believe that the Company’s
disclosure controls and procedures provide a reasonable level of
assurance that the system of internal controls are effective, they
do not guarantee that the disclosure controls and procedures will
prevent all errors and fraud. A control system, no matter how well
conceived or operated, can provide only reasonable, not absolute,
assurance that the objectives of the control system are met.
In addition, the Company has, under the supervision of its
Chairman and President, designed a process of internal control
over fi nancial reporting. The process was designed to provide
reasonable assurance regarding the reliability of fi nancial
reporting and the preparation of fi nancial statements for external
purposes in accordance with Canadian generally accepted
accounting principles.
Based on the Chairman and the President’s review of the design
of internal controls over fi nancial reporting, the Chairman and
President have concluded that the design of internal controls
Aveiro Investment Corp. | 2007 Annual Report | 27