Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Skeena Resources Ltd. (SKE-T) announced a deal to buy QuestEx Gold & Copper Ltd. (QEX-X).
Skeena said the consideration includes 65 cents in cash and 0.0367 of a common share in the capital of Skeena for each QuestEx common share, for a value of $48.6-million, or approximately $1.20 per QuestEx share. The stock closed at 76 cents on the TSX Venture Exchange on Tuesday.
Skeena also said it signed a concurrent binding agreement with Newmont Corp. (NGT-T) to vend certain QuestEx properties to Newmont via an asset purchase agreement on completion of the QuestEx Transaction for approximately $27-million.
“We are excited to announce these transactions, which will add over 74,000 hectares to Skeena’s land holdings and give us one of the largest land positions held for mining in the prolific Golden Triangle,” stated Skeena CEO Walter Coles.
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Aimia Inc. (AIM-T) reported a net loss of $14.6-million or 19 cents per share in the fourth quarter versus a profit of $1.9-million a year earlier.
Income was negative $5.8-million in the quarter, which the company said was mainly related to the equity pick-up of its non-cash share of Kognitiv’s net loss of $8.7-million, as well as the negative net change in fair value of investments of $5.5-million.
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RIV Capital, Inc. (RIV-CN) announced an agreement to acquire ownership and control of Etain LLC and Etain IP LLC, owners and operators of legally licensed cannabis cultivation and retail dispensaries in New York state, for approximately US$247-million.
The company said the acquisition is payable through a combination of cash and newly issued Class A common shares of RIV Capital.
RIV Capital also named Mark Sims as president and CEO of RIV Capital, “to lead the company’s formal entry into the U.S. market and expansion into licensed adult-use operations in New York.
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Ag Growth International Inc. (AFN-T) announced an offering of $100-million of convertible unsecured subordinated debentures. The company said it has an agreement with a syndicate of underwriters to buy the debentures for $1,000 each.
The net proceeds of the offering will be used to redeem Ag Growth’s outstanding convertible unsecured subordinated debentures due Dec. 31 and for general corporate purposes.
“This offering addresses our near-term debt maturity while we continue to focus on execution and organic growth opportunities,” stated CEO Tim Close “We continue to see strong demand as customers across all segments continue to invest in critical equipment and technologies to support their operations.”
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Canfor Pulp Products Inc. (CFX-T) announced a minimum six-week extension of the curtailment of Bleached Chemi-Thermo Mechanical Pulp (BCTMP) production at Taylor Pulp, citing ongoing transportation shortages that have resulted in continued high finished product inventories at the pulp mill.
The curtailment extension will further reduce the production of BCTMP by at least 25,000 tonnes, the company stated.
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The Valens Company Inc. (VLNS-T) announced a $28-million bought-deal financing. The company said it has entered into an agreement with a syndicate of underwriters that will buy about 10.6 million units for $2.65 each.
Each unit includes a common share and a half share purchase warrant exercisable at $3.20 for 48 months.
The company said it plans to use the net proceeds from the offering “to continue to pursue strategic growth initiatives in North America, provide funding for working capital and for general corporate purposes.”
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Thinkific Labs Inc. (THNC-T) said Tuesday it is cutting 100 jobs, becoming the second alumnus of last year’s Canadian technology IPO rush in days to announce a shakeup after the collapse of its stock price.
Chief executive officer Greg Smith said in a release the “difficult decision” to cut 20 per cent of the Vancouver company’s workforce followed “a rigorous review of our organizational structure,” adding the changes would “increase efficiency and lower costs without impacting our growth trajectory.”
“While it is the right decision for the business, it was not one we made lightly,” he said. “This is a difficult day for the Thinkific team, but we are resilient. I am confident in our future.”
- Sean Silcoff.
Read the Globe’s full story here
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Alcanna Inc. (CLIQ-T) reported fourth-quarter same-store liquor sales from continuing operations was $154.3-million, a drop of about 2 per cent from a year earlier. Total sales came in at $210.4-million versus $181.6-million a year ealrier.
Its net loss was $9.2-million or 20 cents per share versus a profit of $9.6-million or 23 cents a year earlier. “Since the March 22, 2021 spin out of Alcanna’s retail cannabis business into a separate publicly traded company, Nova Cannabis Inc., the company indirectly participates in the retail cannabis business through its approximately 63-per-cent ownership of Nova,” it stated.
Alcanna said it must consolidate the financial results of both companies due to accounting practices.
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Exro Technologies Inc. (EXRO-T) reported a fourth-quarter loss of $6.5-million up from a loss of $4.2-million a year earlier).
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CareRx Corp. (CRRX-T) announced a deal to buy Hogan Pharmacy Partners Ltd., a long-term care pharmacy serving approximately 725 residents in long-term care and retirement homes in Ontario.
The deal includes $2.2-million of CareRx common shares and a $2.2-million vendor take-back note, based on certain conditions.
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High Tide Inc. (HITI-X) announced it will buy Livonit Foods Inc. operating as Bud Heaven, which operates two retail cannabis stores in Ontario, for $2.8-million.
“With this announcement, we are continuing to consolidate the Ontario cannabis retail space at accretive multiples for our shareholders. By acquiring Bud Heaven, Canna Cabana will become a meaningful player in Ontario’s cottage country, a region where we have not had a presence previously,” said CEO Raj Grover in a release.
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Dominion Lending Centres Inc. (DLCG-T) reported fourth-quarter revenue of $21.3-million up from $17.5-million a year earlier and ahead of expectations of $20.7-million.
The company swung to a loss of $5.5-million or 12 cents per share versus a profit of $22.6-million or 54 cents a year earlier. Adjusted net income of $1.8-million or 3 cents compared to adjusted net income of $2-million a year earlier.
The company said its net loss for the three months and year ended Dec. 31, 2021 was “primarily due to finance expense on the preferred share liability and an increased net loss in the non-core business asset management segment due to the recognition of the deferred tax asset during 2020.”
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