Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
iAnthus Capital Holdings, Inc. (IAN-C) announced that its U.S. subsidiary has entered into a letter of intent to acquire CBD For Life, a national cannabidiol (CBD) brand in the U.S. launched in February 2016.
iAnthus expects to acquire CBD For Life for about 2.5 million common shares of iAnthus, or about US$13.7-million. At the closing of the transaction, iAnthus also expects to repay the outstanding debt and related accrued interest of CBD For Life of about US$2-million in cash.
"Developing a strong CBD strategy is mission critical for cannabis companies to compete on a national scale while simultaneously entering the consumer product and retail marketplace," said Hadley Ford, CEO of iAnthus. "With the acquisition of a name brand like CBD For Life, iAnthus is well positioned to increase our market share with greater exposure to patients and customers across the country."
Akumin Inc. (AKU-T) reported fourth-quarter revenue of $45.5-million up from $35.2-million a year earlier. Analysts were expecting revenue of $47.9-million. Adjusted EBITDA was $9.2-million or 5 cents per share versus $8.3-million or 7 cents a year ago.
A group led by Mangrove Partners and Bluescape Energy Partners, describing themselves as “together one of the largest shareholders” with about 10 per cent of TransAlta Corp. (TA-T; TAX-N), issued a release to raise “significant questions about the company’s decision to accept a large investment from Brookfield Renewable Partners.” The shareholder group cited “ithe rushed process coinciding with the proxy nomination deadline, the favorable valuation and terms given to Brookfield, and the deal’s implications for the future accountability of TransAlta’s Board and management to shareholders.”
"TransAlta's announcement and subsequent disclosures of the Brookfield investment leave many important questions unanswered," stated Nathaniel August, president and portfolio manager at Mangrove Partners. "Most critically, is it the best deal for TransAlta shareholders or are there potentially superior transactions available?"
Charlotte’s Web Holdings, Inc. (CWEB-C) reported revenue of US$21.5 million in the fourth quarter, which was in line with expectations and compared to US$12.6-million for the same time a year earlier. Net income was US$3.2-milion or 2 cents per share versus US$2.4-million or 3 cents a year earlier. Adjusted EBITDA decreased from 37 per cent to 20 per cent of consolidated revenue, “due to extraordinary items,” the company stated.