Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Note to readers: Small-cap stocks to watch will be taking a break between Dec. 22 and Jan. 1 and will return on Jan. 2. Happy holidays.
"We would like to commend the board and management on the beginning of a successful turnaround of the company but believe the sale of the company to MTY, as currently proposed, substantially undervalues the company, its platform, and potential for future growth," Adam Wyden of ADW said in a letter. "Consequently, we do not intend to support the current transaction at this level and encourage other shareholders to communicate to both the company and representatives of MTY to express their same views."
ADW Capital along with its affiliates hold approximately 14 per cent of Imvescor's common shares, the firm stated.
Leonovus Inc. (LTV-T) announced plans for an initial coin offering in the summer of 2018 "to support the launch of an advanced blockchain storage and compute solution with a marketplace for cloud applications."
The cloud software company said it has invested more than $20-million in the development of distributed compute and distributed storage technology.
"With several granted patents, numerous patent claims and patents pending, the company's unique software-defined storage solution has strong intellectual property protection," it stated.
Leonovus says it's not new to blockchain and was "one of the first companies to marry Internet of Things technology and blockchain."
GreenSpace says the deal includes $4.5-million in cash, $7.6-million in common shares and a two-year vendor take back loan of $5.7-million, carrying an 8.5 per cent coupon.
Greenspace said it will issue 7.16 million common shares at $1.37 per share as part of the transaction, a 14-per-cent premium to the closing market price on Dec. 19.
GreenSpace will be purchasing Go Veggie from Mill Road Capital, a Greenwich, Connecticut-based private investment firm
"With the acquisition of Go Veggie, we enter our most sought-after vertical, plant-based dairy alternatives," stated Matthew von Teichman, CEO of Greenspace. "This is truly a transformative acquisition for us. We will continue to develop their Canadian sales strategy through the leveraging of our current platform and strategically initiate our U.S. development by leveraging their platform."
Sandstorm Gold Ltd. (SAND-N; SSL-T) says it has amended its revolving credit agreement, allowing the company to borrow up to $150-million (U.S) for general corporate purposes, including paying dividends.
The syndicate of banks include; The Bank of Nova Scotia, Bank of Montreal, National Bank of Canada, Canadian Imperial Bank of Commerce, and Royal Bank of Canada. It said the revolving loan has a term of four years, maturing on Dec. 20, 2021.
Freehold says it's acquiring a new 2 per cent GORR in petroleum and natural gas rights in the Pembina Cardium pool. The purchase price is $52-million. The acquisition was funded through the company's existing credit line.
"We see the transaction as enhancing the sustainability of Freehold's dividend, increasing the number of drilling locations on our royalty lands and adding to the quality of our asset base," the company stated.
UrtheCast Corp. (UR-T) says it has signed an agreement with SI Imaging Services, a provider of remote sensing satellite data and exclusive worldwide marketing and sales representative of the Kompst series, "for the mutual global distribution of their respective product portfolios."
"The combination of radar with very high-resolution optical imagery will allow observation of the Earth day and night, regardless of weather conditions, and is intended to provide a constant asset monitoring service," the company stated. "This is key for a wide range of applications, especially those requiring frequent monitoring over the same area of interest and real-time response, such as emergency services, border and maritime surveillance and defence and security."
"Aphria's investment represents an advancement of the company's strategy to be a leader in the recreational market, once legalized in Canada," the company stated.
Its net loss was $1.9-milion or 3 cents per share versus a loss of $430,300 or a penny per share last year. Analysts were expecting a loss of 2 cents in the latest quarter.
Total grams sold increased 50 per cent to 120,844 from 80,782 in the same prior year period, the company said, "reflecting sales of new product lines."
Revenue per gram declined to $9.12 from $14.10, "mainly as a result of the growth of the H2 product line, introduced beginning in December 2017, which retails for $7.25 to $10 per gram."
The company also said lower average realized prices in the latest quarter also reflect the decision by Veterans Affairs Canada to cap the reimbursable amount at $8.50 per gram, effective in the second quarter of fiscal 2017.
Fortress said it has an agreement with Swiss National Bank and Orell Füssli Holding AG to sell the two legal entities representing their security paper products business — Landqart AG and Landqart Management and Services AG
"With the sale of Landqart, Fortress Paper no longer operates in the security paper products segment," the company stated.
Fortress CEO Chadwick Wasilenkoff said Landqart lost "material purchase orders by one of its significant international customers," which the company announced in the third quarter. "As a result, Landqart required an injection of new capital and continued financial support of a magnitude that Fortress Paper as the parent company deemed as not strategically viable." He said the sale of Landqart allows the company to focus on growing its dissolving pulp business and "pursuing other strategic initiatives."
Cannabis companies Body and Mind Inc. (BAMM-CN) and Friday Night Inc. (TGIF-CN) are merging in an all-stock deal valuing Body and Mind at $115-million, based on the recent closing price of Friday Night, the companies said.
"This transaction advances Friday Night into a leading position," stated Brayden Sutton, CEO of Friday Night Inc.
BAM president Robert Hasman called the deal "a meaningful win for our stakeholders." He said the "financial strength of a combined entity will enable us to continue to do more transactions at a rapid pace with the ultimate goal of driving down costs, expanding product lines, and servicing our customers."
It said the loan, which matures on Dec. 31, 2021, will support the commercial launch of the Westport High-Pressure Direct Injection 2.0 program.
"Wheaton and FV plan to utilize the facility to supply Canada's current medical and future recreational market for cannabis with a vision to offer mass quantities of dried cannabis, cannabis oils and, when legally permitted, food-grade cannabis edibles all subject to FV Pharma receiving the necessary licenses," the company stated.
As part of the agreement, Cannabis Wheaton said it will receive a 49.9-per-cent stream of all cannabis — "or cannabis-derived products including any immature cannabis plants and any cannabis trim" — produced at the facility.