Canopy Growth Corporation (TSX:WEED) is raising $25-million in a private placement.milostra/Getty Images/iStockphoto
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) is raising $25-million in a private placement financing with a single, unnamed investor.
It will issue about 3.1 million shares at $8.05 each. The private placement will be completed on or before July 26.
"Investing in production capacity expansion is vital to maintain our existing leadership position in the global cannabis industry," said CEO Bruce Linton. "This equity financing gives us additional resources so we can accelerate into the windows of opportunity that exist domestically and abroad, while inserting advisory expertise as we continue to lead a sector forward into new territory."
The proceeds will be used for capacity growth initiatives, the company said. It said no finder's fees were paid.
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Sears Canada Inc. (SCC-T) says a joint venture group formed among Hilco Global, Gordon Brothers, Tiger Capital Group and Great American Group, will begin operating liquidation sales today at the stores previously announced by the retailer as closing.
The announcement comes after Sears Canada obtained an Order from the Ontario Superior Court of Justice on July 18 to liquidate 54 Stores.
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Colabor Group Inc. (GCL-T), a distributor and wholesaler of products for the foodservice market, reported sales of $331.4-million for the second quarter, down 3.4 per cent from $343-million for the same quarter last year. Net earnings were $3.1-million or 3 cents per share, compared to $3.1-million or 11 cents a year earlier.
Colabor also said it received a termination notice for a supply agreement with Popeyes Louisiana Kitchen in Ontario, effective Nov. 13. Colabor's annual sales with the Popeyes restaurants amounted to more than $40-million.
"This development occurs in parallel with the initiatives that Colabor put in place in the second quarter of 2017 to reassess its customer portfolio as part of the reorganization of its distribution network in Ontario," it stated. "Considering the cost reductions associated with this reorganization and the mitigation measures that will be introduced, the net effect of the termination of this contract on operating profitability should be negligible."
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Oaktree Capital Management, L.P. says shareholders representing about 51 per cent of Tembec Inc. (TMB-T) have "stated their intention" to vote against the proposed acquisition of that company by Rayonier Advanced Materials Inc. (RYAM-N).
"This amount represents approximately 61 per cent of the company's shares excluding the 'empty votes' held by Fairfax Financial Holdings Ltd., underscoring the importance that Tembec's board act in a fair manner and not count Fairfax's votes to attempt to push through an undervalued transaction," said Oaktree in a statement. It owns about 20 per cent of the stock.
"We have voiced our concerns regarding the proposed transaction for Tembec shareholders and are encouraged that Glass Lewis, Restructuring Capital Associates, and numerous other shareholders agree with our analysis that this transaction does not represent fair value," stated Patrick McCaney, portfolio manager for Oaktree's Value Equity strategy.
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