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Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Constellation Brands (STZ-N) has signed a deal to acquire a nearly 10-per-cent stake in Canadian marijuana company Canopy Growth Corp. (WEED-T) for $245-million.
The companies said Monday the agreement will see Constellation provide marketing and brand development support to Canopy.
They will also collaborate in the development of cannabis-based drinks.
Constellation said the deal is part of its strategy to stay ahead of evolving consumer trends and market dynamics, while maintaining focus on its core beverage alcohol business.
"Canopy Growth has a seasoned leadership team that understands the legal, regulatory and economic landscape for an emerging market that is predicted to become a significant consumer category in the future," said Constellation chief executive Rob Sands.
Constellation added that it has no plans to sell any cannabis products in the U.S. or any other market unless or until it is legally permissible to do so at all government levels.
Canopy said the deal gives it a strategic ally.
"We have also strengthened our balance sheet to fund the ambitious expansion efforts we have planned heading into 2018 – a year that will see unprecedented growth in medical and adult-use opportunities," Canopy chairman and chief executive Bruce Linton said.
Under the deal, Constellation will buy a 9.9-per-cent stake or nearly a 18.9 million shares in Canopy for $12.9783 per share. It will also acquire an equal number of common share purchase warrants for Canopy.
-- The Canadian Press
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Imvescor Restaurant Group Inc. (IRG-T) said in a release on Friday afternoon that it has received a "preliminary non-binding indication of interest from a third party."
The headline on the release said the company was responding to "recent unusual trading activity."
The company said there are no assurances an agreement will be reached and that it has received preliminary non-binding indication of interests relating to potential transactions in the past.
The stock closed up 12 per cent on Friday to $4.03.
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Diversified Royalty Corp. (DIV-T) says its Mr. Lube franchise reported same-store-sales-growth (SSSG) of 4.7 per cent in the third quarter compared to SSSG of 1.4 per cent in the third quarter of 2016.
It also said its Sutton franchise results were "within the range of our expectations" in the quarter.
DIV currently owns the Sutton, Mr. Lube and AIR MILES trademarks in Canada. The corporation said its earnings will be released after markets close on Nov. 9.
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Algoma Central Corp. (ALC-T) said late Friday afternoon that it has reached a tentative agreement with the navigation and engineering officers in the company's product tanker fleet, ending a strike that began on Oct. 21
"Vessels tied up as a result of the strike will commence operations as soon as arrangements are made to return the crews to the ships," the company stated.
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Dominion Diamond Corp. (DDC-T; DDC-N) said The Washington Companies has received Investment Canada Act approval to acquire the company for $14.25 (U.S.) per share in cash.
The arrangement has already received shareholder approval, court approval, and clearance under the Competition Act (Canada). "No further regulatory or shareholder approvals are required in connection with the arrangement," the company said.
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Serinus Energy Inc. (SEN-T) says it has reached an agreement with the European Bank of Reconstruction and Development (EBRD) to restructure the terms of two debt facilities.
"The company believes that this restructuring of the debt provides the appropriate balance for the company to be able to meet the debt servicing requirements while also being able to make the capital investments necessary to grow," it stated in a release.
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The Hydropothecary Corp. (THCX-X) is raising $50-million in a bought deal.
It has an agreement with Canaccord Genuity Corp. and a syndicate of underwriters to buy 50,000 convertible debenture units at $1,000 each.
The company said it intends to use the net proceeds for working capital and general corporate purposes.
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Emblem Corp. (EMC-X) has named Nick Dean as its CEO, effective "no later than Jan. 15."
Mr. Dean succeeds Gordon Fox. Mr. Dean most recently he worked with KBS Canada, a creative agency.
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