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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.
Home Capital Group Inc. (HCG-T) is hiking rates on its guaranteed investment certificates in a bid to attract depositors and replenish its cash base, weeks after the troubled lender was rattled by a surge of withdrawals.
The Toronto-based company says it had a total of $12.33-billion in GIC deposits as of Monday – an amount that has remained relatively stable in recent weeks. But that stability is threatened by a coming wave of maturities. Home Capital reported with is first-quarter results that $7.05-billion of fixed-term deposits, including GICs and institutional deposit notes, were set to mature in the 12 months following March 31. About $4.3-billion is set to mature from July to next March.
With renewal dates looming, the company is hitting the street with attractive interest rates that may be piquing the interest of new and current investors. Last Friday, Home Capital raised interest rates for all terms of its Home Trust GICs. A one-year Home Trust GIC now offers 2.2 per cent, up from 1.6 per cent earlier this month, according to a financial adviser.
Oaken Financial posted a rate increase Tuesday morning, offering 2.6 per cent for a one-year GIC, up from 2 per cent at the beginning of May.
"We have raised interest rates recently on GICs offered by both Oaken and Home Trust. We regularly update our rates to reflect the market for deposits and our place in it, and we understand that we need to pay a rate premium right now to attract deposit flows," said Benjy Katchen, Home Capital's executive vice-president, deposits and consumer lending.
--Clare O'Hara and Christine Pellegrini
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Aphria Inc. (APH-T) says it has an exclusive management agreement with Chestnut Hill Tree Farm, LLC to manage and operate its cultivation, processing, and dispensing of medical cannabis to patients within the state of Florida.
The agreement with Aphria's special purpose private company DFMMJ Investment Ltd. also sees it acquire certain assets related to the business operations.
"It is anticipated that after new regulations are introduced in Florida, Chestnut will, in strict adherence with the regulations and after appropriate regulatory approval, transfer the license to DFMMJ," Aphria stated in a release.
DFMMJ plans to "significantly increase" the size of Chestnut's operations in the next six months, the company said.
"These improvements will largely stem from the greenhouse growing intellectual property that Aphria has licensed to DFMMJ in exchange for additional common shares in DFMMJ. Furthermore, DFMMJ will establish a network of dispensaries within Florida state, which will leverage the retail expertise of Liberty's Board and enable them to be leaders is the market."
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DHX Media (DHX.A-T; DHX.B-T) says its DHX Brands division and Dentsu Entertainment USA, have appointed JAKKS Pacific, Inc. (JAKK-Q) as worldwide master toy licensee for its new animated series Mega Man.
The multi-year license agreement excludes Asia, the companies said.
It allows JAKKS to "exclusively manufacture, market, and distribute a wide range of consumer products, including action figures, figurines, playsets and accessories, everyday dress-up and role-play, Halloween costumes, plush and vehicles, inspired by the new show," the companies stated.
The Mega Man animated series is aimed at kids ages six to 11.
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Patient Home Monitoring Corp. (PHM-X) reported second-quarter revenues of $31.8-million, down 6 per cent from a year earlier.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $6.2-million versus a loss of $4.7-million a year earlier.
Net income was $20,000 or nil per share compared to a loss of $13.1-million or 3.8 cents a year earlier.
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Algoma Central Corp (ALC-T) says it has sold the Delta Hotels Sault Ste. Marie Waterfront hotel operations and related real estate for $7.5-million.
It said the gain on the sale of the property will be reported in its second-quarter results.
"The company's decision to sell its real estate holdings is a result of a new strategic objective to direct capital to the renewal of the domestic dry-bulk fleet and to new opportunities in international shipping," it said in a release.