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Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Aurora Cannabis Inc. (ACB-T) has announced a deal to buy CanniMed Therapeutics Inc. (CMED-T) for more than $1.1-billion, the largest acquisition to date in Canada's marijuana industry. The agreement was reported earlier by The Globe and Mail.
Under the deal, CanniMed shareholders can receive 3.40 Aurora shares or a combination of cash and shares. Based on an implied Aurora share price of $12.65 and the 3.40 exchange ratio, the new offer is equal to $43 per share, representing a 181-per-cent premium over the closing price of CanniMed shares on Nov. 14, the last day prior to the public disclosure of Aurora's intention to pursue a combination with CanniMed.
CanniMed, a medical marijuana producer, closed at $37.51 on the Toronto Stock Exchange on Tuesday, giving it a market capitalization of about $900-million.
Meanwhile, as reported in the Globe, Newstrike Resources Ltd. (HIP-X), a cannabis company looking to specialize on Canada's recreational pot market, had previously agreed to a friendly takeover by Saskatoon-based CanniMed. But Newstrike is excluded from the Aurora transaction, and will now carry on as a stand-alone company. According to the release on Wednesday, CanniMed has entered into a termination agreement with Newstrike, resulting in the payment of a $9.5-million break fee to Newstrike.
"We are very pleased to have come to terms with CanniMed on this powerful strategic combination that will establish a best-in-class cannabis company with operations across Canada and around the world," said Terry Booth, CEO of Aurora. "Market recognition of Aurora`s continued performance and strategy execution since we first announced our intention to acquire CanniMed allows us to share that benefit directly with CanniMed shareholders by increasing the offer price, as well as by offering a cash component."
CanniMed CEO Brent Zettl called the deal, "A testament to the great team at CanniMed, this transaction clearly confirms that the company has been highly successful in becoming a preeminent global leader in the medical cannabis industry. In this leadership position, CanniMed has provided invaluable education, resources, support and relief of symptoms for thousands of patients served around the globe."
-- Christina Pellegrini, Jeffrey Jones and Brenda Bouw
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Energy Fuels Inc. (UUUU-N; EFR-T) says it has appointed Mark Chalmers, the current president and chief operating officer, as president and CEO, effective Feb. 1. Current CEO Stephen Antony will retire on Jan. 31, the company said.
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Standard Lithium Ltd. (SLL-X) says it's raising $20-million in a bought-deal financing. It has an agreement with Canaccord Genuity Corp. to purchase 9.5 million units at $2.10 each.
Net proceeds will be used for exploration and development activities on the company's properties and for general corporate purposes.
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Nuuvera Inc. (NUU-X) says it has signed a letter of intent with Medalchemy S.L. to acquire a majority interest in its fully-licensed, GMP-certified laboratory in Alicante, Spain.
Nuuvera has also signed an LOI with Canamo y Fibra Naturales, S.L. (Cafina) also based in Alicante.
Nuuvera will acquire a 30-per-cent interest in Cafina and "intends to purchase cultivated cannabis products from the company as well as hemp to be used in CBD extraction." The two companies will also enter into a joint-venture agreement that gives Cafina a minority interest in the Nuuvera's subsidiary that controls Medalchemy.
"These anticipated investments will greatly enhance Nuuvera's operational capacity to produce premium quality cannabis products, and our ability to supply the European market with medicinal cannabis," stated Lorne Abony, CEO of Nuuvera.
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Maricann Group Inc. (MARI-CN) announced a non-binding term sheet for the proposed acquisition of all outstanding shares of Haxxon AG of Switzerland for a purchase price of 8 million Swiss francs, or about $10.4-million (Canadian) in cash and shares.
Haxxon cultivates female hemp cannabis flowers for the European market.
"The acquisition of Haxxon, if completed, will allow Maricann to produce cannabis flowers in Switzerland which would then be manufactured into finished products," the company stated. "These products would include cannabis vape cartridges, cannabis pre-roll cigarettes with no tobacco, unlike other current offerings, and CBD isolates in the form of finished dose pharmaceuticals, including VesiSorb capsules."
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Freshii Inc. (FRII-T) released some preliminary unaudited results for the fourth quarter ended Dec. 31, including a same-store sales increase of 6.4 per cent year-over-year.
"As a result of our strong fourth quarter performance, we were able to exceed our recently increased same-store sales growth outlook and grow same-store sales 5.5 per cent for the full year," stated Matthew Corrin, CEO of Freshii.
The company said it expects to report full results on Feb. 22.
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Jericho Oil Corp. (JCO-X) says it has entered into a farm-in agreement, through its Oklahoma Stack joint venture, to participate in the drilling of between two and five horizontal wells in Major County, with a private operator.
"This transaction puts the company in a good position to cost-effectively boost its strategic acreage position in the prolific Stack play," stated Ryan Breen, director of corporate development.
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