Some of Aphria's medical marijuana plants grow in their greenhouse in Leamington, Ont., on May 26, 2014.GEOFF ROBINS/The Globe and Mail
Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Aphria Inc. (APH-T) says it plans to buy fellow cannabis company Nuuvera Inc (NUU-X) for $826-million to create a global leader in the international medical cannabis market.
Aphria said it will pay $8.50 per share to Nuuvera shareholders, representing a 21.4-per-cent premium to the stock's Friday closing price.
"The combination of Aphria and Nuuvera creates a true global leader in medical cannabis with excellent potential for growth and value creation," said Aphria CEO Vic Neufeld.
Aphria said it plans to leverage Nuuvera's "numerous relationships in Germany, Italy, Spain, the United Kingdom, Malta, Israel, Lesotho and Uruguay. Combined with Aphria's existing agreements in Australia, the combined company establishes a leading international footprint among Canadian licensed producers, and expands Aphria's processing and manufacturing capabilities globally."
-with files from Reuters
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Stornoway Diamond Corp. (SWY-T) says it sold 138,687 carats for gross proceeds of $14.4-million (U.S.) for its first sale of 2018. The average price was $104 per carat. "This is the highest price achieved to date, and reflects a strengthening diamond market at the beginning of the year and appreciable improvements in breakage levels, size distribution and quality mix," the company stated.
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Trinidad Drilling Ltd. (TDG-T) says it is moving eight rigs to the Permian Basin in Texas "to meet increased customer demand." It said the rigs will be redeployed from the company's existing global operations, including Canada.
"Trinidad is prepared and well positioned to respond quickly to the improving market conditions with a high-quality fleet and a low-cost structure," it stated in a release on Monday. "Due to strong customer demand in the Permian Basin for high-specification, efficient equipment, Trinidad has chosen to redeploy idle assets from areas of weaker demand. The costs to move three idle rigs from Saudi Arabia will be partly covered by Saudi customer-paid demobilization fees, with the remaining costs and the costs to move rigs within North America expected to be largely covered by Permian customers."
The company said it is in "active discussions" with customers to sign contracts for the rigs.
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Oncolytics Biotech Inc. (ONC-T) says its board has approved a plan to apply for the listing of its common shares on the Nasdaq.
To meet the Nasdaq's listing requirements, the board is asking shareholders to approve a consolidation of the company's common shares at a special meeting to be held on Feb. "With the support of the company's shareholders, Oncolytics would be positioned to amass unrecognized value and join the ranks of the world's most respected biotech companies," it stated.
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Ballard Power Systems (BLDP-Q; BLDP-T) issued a release on Monday to preview its anticipated year-end financial results and respond to a recent short-seller report.
Based on preliminary unaudited financial statements for fiscal 2017, Ballard said it expects to report record annual revenue of approximately $120-million, "positive adjusted EBITDA, and year-ending cash on hand of approximately $60-million."
"We believe these results fully validate our long-held belief that Ballard is uniquely positioned to capitalize on the worldwide trend toward zero-emission transportation," stated CEO Randy MacEwen. "Nothing we have seen in the short-seller report fundamentally changes our outlook for the business. To the contrary, we note that some of the statements upon which the short-seller bases its argument are demonstrably false, while others amount to little more than what we believe is unduly negative speculation about the obvious and well-disclosed risks and uncertainties of commercializing new technologies in emerging markets."
Ballard said the short-seller's report contains "a number of unsubstantiated forward-looking statements, assumptions and opinions, as well as other statements and assertions that are simply false."
On Thursday, Hedge fund Spruce Point Capital Management issued a release about its report which it says discusses "the potentially significant risk to Ballard's backlog and suggests that the stock has 35%-70% downside."
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Delta 9 Cannabis Inc. (NINE-X) says it has a non-binding letter of intent with Westleaf Cannabis Inc. to create a strategic partnership for the joint development of a large-scale cannabis production facility in southern Alberta.
As part of the agreement, Delta 9 and Westleaf will each own a 50-per-cent equity interest in the project.
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Organigram Holdings Inc. (OGI-X) says sales rose to $2.7-million in the first quarter ended Nov. 30, versus expectations of $2.9-million and up from $2.2-million a year earlier.
The company reported a net loss of $1.4-million versus a loss of $800,000 a year ago. The expectation was for a loss of $1.6-million.
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Mountain Province Diamonds Inc. (MPVD-T; MPVD-Q) says it has a friendly deal to buy Kennady Diamonds Inc. (KDI-X).
Kennady shareholders will receive 0.975 of a Mountain Province common share for each Kennady common share, representing the equivalent of $3.46 per Kennady Share, based on the closing price of Mountain Province Shares on the TSX on Friday.
The company said the exchange ratio represents a premium of 26 per cent to Kennady's closing price and a premium of 15 per cent based on the 20-day volume-weighted-average-price of Mountain Province shares on the TSX and Kennady Shares on the TSX Venture Exchange, both as of close on Jan. 26.
The implied equity value for Kennady based on the exchange ratio is approximately $176 million, the company said.
Upon completion of the transaction, the combined company will be owned approximately 76 per cent by Mountain Province shareholders and 24 per cent by Kennady shareholders.
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Grande West Transportation Group Inc. (BUS-X) says it has received new orders for approximately $11-million. "These new orders are from existing customers BC Transit, Bow Valley Regional Transit and new customer Town of Midland for deliveries in 2018," the company stated.
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ABcann Global Corp. (ABCN-X) says it's raising about $70-million in a bought-deal financing. It has an agreement with Canaccord Genuity Corp. and Eight Capital to buy: (i) 11.5 million units at $3.50 for total proceeds of $40.3-million and (ii) 30,000 unsecured convertible debentures for $30-million.
The company said it intends to use the net proceeds or construction and development at its existing Vanluven facility and planned Kimmett facility, as well as for product and corporate development.
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Maricann Group Inc. (MARI-CN) says it's raising $70-million in a bought-deal financing.
It has a letter of engagement with Eight Capital, acting as joint bookrunner and co-lead underwriter with Canaccord Genuity Corp. and along with a syndicate of underwriters, to buy 17.5 million units at $4 each.
The company said it intends to use the net proceeds for acquisitions, capital expenditures and for working capital and general corporate purposes.
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Serinus Energy Inc. (SEN-T) says its board of directors will seek shareholder approval to move the corporation from Alberta to Jersey, Channel Islands. It will hold a meeting on March 7.
The board said the move would be in the best interests of the corporation since London and Jersey "are more conveniently located in relation to the corporation's financing and other activities in Europe and its principal assets in Romania and Tunisia," and because it has no active commercial connections to Canada.
"The corporation anticipates that an AIM listing and a Jersey domicile would result in greater access to the European capital and debt markets for the corporation, as European market investors are generally more familiar with Jersey companies and tax resident listed companies and are nearer to the Corporation's principal assets," it stated in a release.