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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.

Mattress retailer Sleep Country Canada Holdings Inc. (ZZZ-T) has agreed to buy one of its biggest upstart e-commerce competitors, Endy, for up to $89-million.

Endy, which was founded in 2015 makes its mattresses in Canada and ships for free across the country, is one of more than 100 “bed-in-a-box” retailers that sells primarily online, with such other competitors as Casper. Such startups have posed a significant threat to traditional mattress sellers such as Sleep Country.

The companies announced the deal Thursday after markets closed. It’s worth $64-million in cash upfront and up to $25-million more by 2021 if Endy hits growth and profitability targets. Endy has sold more than 80,000 mattresses to date, and is on track to hit $50-million in sales this year.

It will operate as a separate business and retain its leadership, including co-founding chief executive officer Mike Gettis and Rajen Ruparell, its chair and majority shareholder. The companies said doing so will “encourage the same competitive spirit that positioned both companies as leaders in their respective spaces.”

- Josh O'Kane

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Automotive Properties Real Estate Investment Trust (APR-UN-T) said it plans to purchase the Brimell Toyota automotive dealership property in Scarborough, Ont. from a third party for about $26-million. “Concurrent with the REIT’s acquisition of the property, Drive Autogroup will acquire the Brimell Toyota dealership operating business and will become a tenant of the REIT,” the company stated.

“We look forward to adding one of the premier Toyota dealership properties in Toronto to our portfolio and welcoming Drive Autogroup as a new tenant,” said Milton Lamb, CEO of Automotive Properties REIT.

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Emerald Health Therapeutics, Inc. (EMH-X) reported third-quarter revenue of $321,070 versus $211,316 for the same quarter a year ago. Its net loss was $6.3-million or 5 cents per share versus a loss of $1.9-million or 2 cents a year earlier.

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VIVO Cannabis Inc. (VIVO-X) reported third-quarter sales of $2.3-million up from $200,000 a year ago. Its net loss was $9.1-million versus a loss of $3.7-million a year ago. Adjusted EBITDA was a loss of $4.7-million versus a loss of $3.7-million a year ago.

“The acquisition of Canna Farms represents a transformational transaction in the evolution of VIVO that has led to a record quarter of $2.3-million [in] revenue, with $4.4-million of pro forma revenue for the full quarter. Not only has this acquisition provided a significant revenue impact, it has tripled our production capacity, expanded our product range and substantially increased our medical patient base,” stated CEO Barry Fishman.

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MedMen Enterprises Inc. (MMEN-CN) reported first-quarter sales of US$21.5-million up from US$1.8-million a year ago.

Its net loss came in at US$12.5-million for the quarter ended Sept. 30 versus a loss of $5-million a year ago.

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Hive Blockchain Technologies Ltd. (HIVE-X) announced an increase to its bitcoin mining capacity. Hive announced the addition of 100 Petahashes (PH) of cloud-based ASIC (application-specific integrated circuit) mining capacity bringing total capacity to 300PH’s at a cost of US$6-million. The company said the transaction will be paid with US$2.5-million in cash or Ethereum and an additional $3.5-million (Canadian) with about 8 million common shares valued at about 55 cents (Canadian) per share, “a significant premium to Hive’s current trading price.” The stock closed at 32 cents on the TSX Venture Exchange on Thursday.

“The cost per Petahash is significantly reduced versus previous ASIC deployments and the agreement also includes a six-month option, starting Jan. 1, 2019, for HIVE to add a further 100PH’s at the same economic terms as today’s announcement,” the company stated. “The immediate 100PH’s increases ASIC mining by 50 per cent and positions the company as one of the largest publicly listed cryptocurrency miners.”

The company also reported income of US$6.5-million in the second quarter and a net loss of US$28.3-million or 9 cents per share compared to income of US$170,819 and a loss of US$20.3-million or 20 cents a year ago, according to documents filed on Sedar.com. The company said it started earning income from digital currency mining in mid-September 2017.

“The filing of HIVE’s second quarter financial results marks the company’s first full year as a publicly listed company which has included numerous positive events but not without challenges. We have raised significant capital, deployed more than 24 megawatts of GPU mining capacity and recently launched 200 petahashes of ASIC mining capacity,” said Frank Holmes, interim executive chairman of Hive said in a release.

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 05/01/24 6:21pm EST.

SymbolName% changeLast
ZZZ-T
Sleep Country Canada Holdings Inc
-0.5%29.84
APR-UN-T
Automotive Properties REIT
+0.88%10.29
MMEN-CN
Medmen Enterprises Inc Class B Subordin
0%0.015
HIVE-X
Hive Blockchain Technologies Inc
+1.13%4.46

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