Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Aphria said the investor is buying 14,044,944 units of the company at a price of $7.12 per unit.
Each unit includes one common share of Aphria and one-half of one common share purchase warrant. Each warrant allows the investor to buy one common share at a price of $9.26 for 24 months.
Aphria said it intends to use the net proceeds to finance international expansion, working capital and general corporate purposes.
“Given the strength of our leadership team, the continued execution of our strategic plan and the robust opportunities we have for growth in the global cannabis industry, we were able to secure this additional capital from a single investor, a significant endorsement of Aphria in these market conditions,” stated Aphria CEO Carl Merton in a release. “We expect this strategic investment to strengthen our balance sheet and propel Aphria forward as we continue to differentiate ourselves in the industry.”
Domtar Corp. (UFS-N; UFS-T) said it expects to report fourth-quarter sales of US$1.2-billion, in line with expectations of US$1.27-billion and below sales of US$1.39-billion for the same quarter a year earlier.
The company also expects to report an operating loss of between US$15-million and US$19-million. EBITDA is expected to be between US$74-million and US$78-million. The company said the expected operating loss in the fourth quarter includes closure and restructuring costs of approximately US$19-million and depreciation and amortization of US$74-million.
“Our fourth-quarter results fell short of expectations. We increased market-related downtime to better balance our supply with our customer demand and to accelerate our inventory reduction plan,” said CEO John Williams. “Our inventories are now at optimal levels and our expectation is that our business will return to a balanced level in early 2020 given recent capacity closures.”
The company will release its fourth quarter and fiscal year financial results before markets open on Feb. 7.
iAnthus Capital Holdings, Inc. (IAN-C) announced it has been approved to start adult-use cultivation and processing at its Holliston, Mass. facility. “Demand for adult-use cannabis in Massachusetts has continued to exceed supply and stock-outs are endemic across the market. We look forward to the opportunity to bring safe, high quality, well-curated products to the adult-use market just as we have to the medical market to help address this problem,” said CEO Hadley Ford.
Mountain Province Diamonds Inc. (MPVD-T; MPVD-Q) announced it sold 771,799 carats at an average value of US$64 per carat for total proceeds of US$49.2-million in the fourth quarter. That compares to 822,548 carats sold at an average value of US$65 per carat for total proceeds of US$53.6 million a year ago.
Score Media and Gaming Inc. (SCR-X) announced that it has secured market access to offer mobile sports betting in Colorado through an agreement executed with a subsidiary of U.S. gaming operator Jacobs Entertainment Inc. (JEI).
Subject to receiving all relevant licenses and approvals from the Colorado Division of Gaming, the company said it expects to launch its mobile sportsbook, theScore Bet, in Colorado later this year.
Under the agreement, JEI will receive a percentage of revenue derived from theScore Bet’s mobile sports betting operations in Colorado, subject to certain annual minimum guaranteed amounts, and an initial upfront fee, the company said. It said the agreement is for 10 years, with the option to extend for two successive five-year renewal terms, at theScore’s option.