Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Mettrum Health Corp. (MT-X) is selling its wholly owned subsidiary Mettrum (Bennett North) Ltd., which is licensed to produce and sell dried cannabis and cannabis extracts for medical purposes, to Cannabis Care Canada Inc.
CCC is financially backed by Laborers International Union of North America (LiUNA), North America's single largest construction union.
CCC will pay $7-million in cash and enter into a three-year supply agreement that is expected to generate up to $40-million in revenue for Mettrum over the next three years, the company said.
Bennett Road North will be renamed Starseed Medicinal Inc, and will become a subsidiary of CCC, whose board members will include Edmund King, former CEO and Chairman of Wood Gundy, Hugh Scully, former president of both the Ontario and Canadian Medical Associations, and retired Major General Lewis Mackenzie.
Mettrum will supply Starseed with cannabis and cannabis extracts to sell to members of LiUNA who have valid medical documents to use cannabis for medical purposes, the company said.
"We believe cannabis is a medicine able to treat many ailments, including the management of pain. Working in conjunction with Mettrum and Starseed, we want to make medicinal cannabis treatment available to all of our members and their families and will, in time, make it a paid benefit," LiUNA vice president Joseph Mancinelli said in a release.
Bellatrix Exploration Ltd. (BXE-T;BXE-N) says it's selling some non-core assets in Alberta to privately held InPlay Oil Corp. for $47-million.
The company said the deal includes $42-million in cash and rest in shares.
The Pembina asset sale includes oil-weighted production of approximately 930 barrels of oil equivalent per day and formation rights, the company said.
The proceeds will be used to repay debt.
Algoma Central Corp. (ALC-T) says it sold the Martindale Business Centre in St. Catharines, Ont. and the three office buildings within the Waterloo Technology Campus for $36.8-million.
"The sale of these properties brings us one step closer to fully focus on our fleet renewal program and new ventures in domestic and international shipping," said CEO Ken Bloch Soerensen in a release. "We continue to work on selling the other properties in the portfolio and look forward to completing this successfully."
Essential Energy Services Ltd. (ESN-T) is raising $10-million in a bought deal financing.
The underwriters are buying 15.4 million shares at 65 cents each, the same price at which the stock closed on Monday.
The net proceeds will be used to pay debt and fund "capital expenditures, acquisitions, organic growth initiatives, working capital and for general corporate purposes," the company said in a release.