Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
"Lundin Mining continues to pursue strategic growth opportunities," the company stated. "Our portfolio of high-quality long-life, mines enables us to remain disciplined to our investment criteria and rigorous in our allocation of capital to deliver superior shareholder returns. Our financial strength affords us substantial flexibility to respond to external opportunities while advancing high value-add internal projects and unlocking exploration potential at each of our mines."
On Sept. 5, Nevsun announced it had reached a friendly deal to be taken over by China’s Zijin Mining Group Co. Ltd for $6 a share, 26-per-cent above Lundin’s $4.75 tender offer. Vancouver-based Nevsun had been seeking a white knight after rejecting a series of hostile takeover offers from Toronto-based Lundin Mining on valuation grounds.
-with a file from Niall McGee
BMTC Group Inc. (GBT-T) says its revenues increased to $219.6-million in the quarter ended July 31 compared to $199.3-million for the same quarter last year. Analysts were expecting revenue of $202.3-million. Net earnings were $16.9-million or 48 cents compared to $14-million or 38 cents a year ago.
Enghouse Systems Limited (ENGH-T) reported third-quarter revenue of $86.7-million, which was in line with expectations and compared to revenue of $82.8-million in the third quarter last year. "The revenue increase primarily reflects contributions from acquisitions," the company said.
Net income was $16-million or 58 cents per share versus net income of $11.2-million or 41 cents a year ago and ahead of expectations of 52 cents.
Reitmans (Canada) Limited (RET.A-T) reported sales for the second quarter ended Aug. 4 of $248.8-million, as compared with $250.7-million for the three months ended July 29, 2017. Analysts were expecting sales of $258.1-million in the latest quarter.
The company said it "continues to execute against a plan adapting to the new retail environment by reducing its store presence in select markets while enhancing its e-commerce capabilities. Sales were negatively impacted by approximately $6.1-million due to the second quarter of fiscal 2019 ending one week later than the second quarter of fiscal 2018."
Same-store sales1 increased 3.4 per cent compared to the comparable 13 weeks ended August 5, 2017, with stores sales decreasing 1.2 per cent and e-commerce sales increasing 40.8 per cent.
Net earnings were $10-million or 16 cents per share as compared with $9.4-million or 15 cents a year ago.
The company said it became aware of "certain promotional activity" on its securities on Sept. 4 "related to certain promotional literature encouraging investors to purchase the company's common shares and making certain statements regarding the potential returns on such investment, including certain promotional newsletter emails," the company stated. "It is difficult to determine whether the promotional materials resulted in any increased trading activity in the company's common shares but the company believes that recent increases in its share price and trading volume are industry specific as the cannabis sector and the company's direct competitors have generally seen an increase in trading activity over the past week."
The company said some of the statements and claims made were taken from its corporate website, historical press releases and other public documents, "but the company had no editorial control over the content of the material." It also said there are statements encouraging investors to purchase the company's share, "which only express the view of the authors and the company disclaims any potentially exaggerated or misleading statements contained in the material."
It also said "certain statements included in these publications related to the company and its business might be read as misleading and/or incomplete and readers should not place undue reliance on these newsletters or websites," adding that it "does not condone any statements made regarding the urgency of investing in the company’s common shares or any other similar statements."
MedMen Enterprises Inc. (MMEN-CN) said it plans to raise $75-million in a bought-deal equity financing. It says Eight Capital has agreed to purchase — as co-lead underwriter and joint bookrunner, along with Cormark Securities Inc. — 13.6 million units of the company at a price of $5.50 per unit.
Each unit will include one Class B subordinate voting share of the company and one-half of one Class B Share purchase warrant. Each Warrant shall entitle the holder to purchase one Class B Share at an exercise price of $6.87, for a period of 36 months.
The company said it intends to use the net proceeds "for continued expansion of its retail footprint across attractive cannabis markets, development of its cultivation and production facilities, working capital and general corporate purposes."
Valens GroWorks Corp. (VGW-CN) says it has signed a letter of intent with Medigrowth Australia Pty Ltd. to supply premium cannabis flower and oil product offerings to Medigrowth for sale and distribution in the Australian market.
The company will also supply premium cannabis flower and oil product offerings to Medigrowth for research and development initiatives, and provide cultivation, extraction and lab service expertise to Medigrowth to support research and development partnerships and collaborations with Australian universities, governments and other institutions.
The letter of intent provides for an initial three-year agreement term.
VIVO Cannabis Inc. (VIVO-X) says its Canna Farms Limited subsidiary has completed an agreement with the Ontario Cannabis Store to supply Ontario with cannabis products. Canna Farms will supply the Ontario market with cannabis products in two formats, representing 10 different product presentations, the company said.
“This agreement between Canna Farms and the OCS brings VIVO’s total count to 26 product presentations that will be available to Ontario recreational cannabis users,” said Barry Fishman, CEO of VIVO.
Emerald Health Therapeutics, Inc. (EMH-X) said it has been selected as an approved supplier by the Ontario Cannabis Retail Corporation, operating as the Cannabis Retail Store, to supply the province of Ontario with its cannabis products in anticipation of the adult-use market.
“We’re proud to partner with the OCS to provide adults in Ontario with the opportunity to discover our products,” said Chris Wagner, CEO at Emerald.
Namaste Technologies Inc. (N-X) says it has signed an agreement to purchase bulk medical cannabis products from Tilray Inc. (TLRY-Q) to be sold on Namaste's e-commerce platform through its wholly-owned subsidiary Cannmart Inc.
"The supply agreement with Tilray Canada will add significant value to Cannmart's current product offering, and Namaste is incredibly excited to be able to offer patients Tilray's selection of high quality, pharmaceutical-grade medical cannabis products," the company stated.
Tahoe Resources Inc. (THO-T; TAHO-N) announced the restart of mining operations following an agreement to end the protest at its La Arena mine in Peru. "At this time, we do not believe there will be a material impact to annual production as a result of the eight days of suspended mining operations," the company stated. "However, this event, together with the labor strike in the second quarter at La Arena have disrupted production... ." The company said it now expects to be near the low end of its annual production guidance at La Arena of 160,000 to 185,000 ounces of gold.
Auxly Cannabis Group Inc. (XLY-X) says its subsidiary Dosecann Inc. has a definitive supply agreement with Aphria Inc. (APH-T). Dosecann will have the option to purchase cannabis, including dried flower and cannabis oil for distribution to certain international markets, including Mexico, Portugal, and Serbia, as well as a limited amount for distribution into the Canadian market, the company stated.
Ascot Resources Ltd (AOT-X) announced a non-brokered private placement offering to a consortium of accredited investors of up to 3 million common shares that will qualify as "flow-through shares" at a price of $1 each for gross proceeds of up to $3-million.
Hut 8 Mining Corp. (HUT-X) said it purchased an additional 16 BlockBox datacentres which have been installed at its bitcoin mining facility in Medicine Hat, Alta. "The additional 16 BlockBoxes ... increases Hut 8’s bitcoin mining capacity by 19.2 MW and approximately 144 petahashes per second (PH/s)," the company stated. "When combined with its operations in Drumheller, Alta., the company now operates a total of 73 BlockBoxes, representing an aggregate capacity of 85.9 MWs of fully-funded operating power representing approximately 632 PH/s."