Medical marijuana plants are pictured in this file photo.Dave Chan/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.
Canopy Growth Corp. (WEED-T) says its Bedrocan Canada Inc. subsidiary has started arbitration proceedings against Bedrocan International related to contractual obligations under a licensing and distribution agreement.
"Bedrocan Canada asserts the licensor has withdrawn and/or withheld services, designs, and support contrary to the licensor's contractual obligations," the company said in a statement after markets closed on Friday. "Because of this, and due to the fact that Bedrocan International procedures cannot be altered independently of the licensor, Bedrocan Canada is now seeking redress."
Canopy Growth, then operating as Tweed Marijuana Inc., completed its acquisition of Bedrocan Canada in August, 2015.
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Dominion Diamond Corp. (DDC-T; DDC-N) says it's accepting a $1.2-billion (U.S.) friendly cash takeover offer from The Washington Companies.
The privately held Montana-based company is offering $14.25 per share for all shares of Dominion Diamond, which is one of the world's largest diamond producers.
Dominion Diamond had rejected a previous offer of $13.50 per share but said its board hadn't closed the door on a deal.
Its main holdings are part-ownership in the Ekati and Diavik diamond mines in the Northwest Territories, northeast of Yellowknife.
--The Canadian Press
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Chorus Aviation Inc. (CHR-T) says its subsidiaries are buying two Embraer 190 aircraft; one of these aircraft currently on lease to Dutch carrier KLM Cityhopper, the other with a subsidiary of Aerovías de México, S.A. de C.V.
"This transaction represents an exciting milestone for Chorus," said Chorus CEO Joe Randell in a release. "We are broadening our revenue base through the addition of high-quality lessees and extending our market reach through the addition of Embraer aircraft to our fleet. Importantly, we are growing by leveraging what we know best: regional aviation."
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Cardiome Pharma Corp. (CRME-Q; COM-T) says Health Canada has approved its Aggrastat high dose bolus regimen.
"The 25 mcg/kg Aggrastat HDB regimen (25 mcg/kg over three minutes, followed by a maintenance infusion of 0.15 mcg/kg/min) will now become the recommended dose to reduce the rate of refractory ischemic conditions, new myocardial infarction and death in high-risk patients with non-ST-elevation acute coronary syndrome who undergo early percutaneous coronary intervention (PCI)," the company said in a release.
It said Health Canada approved the drug treatment "based on evidence from a number of independent studies that indicated that a higher degree of platelet inhibition was beneficial for patients in need of an urgent PCI and thus at a high risk for ischemic events."
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Sandvine Corp. (SVC-T), which is in the midst of a takeover battle for the company, reported revenue of $27.5-million (U.S.) for its second quarter of 2017, down from $33.5-million a year earlier.
Net income was $1.1-million, or a penny per share, down from $4-million or 3 cents a year ago.
Analysts were expecting earnings of 3 cents per share and revenue of $31.9-million.
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MedReleaf Corp. (LEAF-T) announced a multi-year licensing and distribution agreement with Massachusetts-based CannaKorp Inc., makers of a single-use, pod-based cannabis vaporizing system.
"We are proud to partner with technology leaders like CannaKorp to be the first licensed producer in Canada to offer this innovative cannabis vapor delivery system", said Neil Closner, MedReleaf CEO.
The companies said the vaporizer and pods will be produced exclusively by MedReleaf and will be available to patients on their online store pending regulatory approval. As part of the agreement, MedReleaf will fill, package, and distribute the pods, the companies said.
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CRH Medical Corp. (CRH-T; CRHM-N) issued a statement Monday on the estimated impact of the Center for Medicare and Medicaid Services (CMS) proposed fee schedule for 2018, announced on July 13, including lower revenues and operating EBITDAv(earnings before interest, taxes, depreciation and amortization).
It said proposed rule changes the billing structure for CRH's primary billing code for anesthesia provided in conjunction with a lower endoscopy. It said the existing billing code is being replaced with two new billing codes.
"The new billing codes will have the net effect of decreasing the amount CRH will likely bill and collect for anesthesia services provided in conjunction with a lower endoscopy," the company said.
It said anesthesia revenue would decrease by approximately 8.5 per cent and total revenue would decrease by about 7.5 per cent.
Total adjusted operating EBITDA would decrease by approximately 13.5 per cent.
"We believe that this would decrease our total adjusted operating EBITDA margin from 53 per cent to approximately 47 per cent," the company stated.
"If the new billing codes go into effect as currently proposed, we anticipate that our business will continue to generate strong adjusted operating EBITDA margins of approximately 47 per cent," stated CEO Edward Wright. "Our focus continues to be growing our business through acquisitions and organic growth, which will be funded from our cash flow from operations and existing credit facility."
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Photon Control Inc. (PHO-X) says it promoted Daniel Lee, vice-president of finance to the role of chief financial officer effective July 15.
"Daniel, who has served as our VP Finance since April, 2017, is an accomplished executive who has a depth of public company reporting, management control and business analysis experience, as well as having participated in a number of M&A transactions in the past," said Photon Control CEO Scott Edmonds in a release on Monday.
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Newstrike Resources Ltd. (HIP-X) says it has received approval for "unrestricted production capacity and production of cannabis oils." It said Health Canada approved a number of requested amendments to the terms of the production license held by its wholly-owned subsidiary, Up Cannabis Inc.
"This removal of production restrictions is an important milestone that we plan to replicate as we build-out our growing platform to accelerate our commercialization strategy," said Jay Wilgar, CEO of Newstrike, Up's parent company, in a release. "These amendments expedite the execution of our business plan to provide the greatest range of benefits to the greatest number of authorized cannabis users."
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