Our roundup of some of the Canadian small-caps (between $100-million and $2.5-billion in market capitalization) making news and on the move today.
Editor’s note: This week marks the return of the daily small caps roundup. Please let us know your thoughts by leaving a comment on this story.
Bragg Gaming Group (BRAG-Q; BRAG-X) announced a management shakeup and strategic review on Monday.
The company said it has appointed its board chair Paul Godfrey to the role of interim CEO, effective today. Richard Carter will step down from the CEO role, effective immediately, the company stated, while also announcing a strategic review of the overall company, “including the immediate restructuring” of the CEO role.
“While peers continue to trade and transact at significantly higher multiples, Bragg’s continued strong growth has yet to be reflected in the company’s public market performance, and the board has determined that a search for new CEO is required,” the release states.
Bragg founder and former Interim CEO Adam Arviv will take on the role of special advisor to the chair and CEO, the company said. Oryx founder and vice-chair of the board, Matevž Mazij “will also play an integral role in the organization,” it stated.
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Tidewater Renewables Ltd. (LCFS-T) announced a multi-year agreement with an investment-grade company to sell British Columbia Low Carbon Fuel Standard (BC LCFS) credits that it says it will receive through the construction of the Renewable Diesel & Renewable Hydrogen Complex at Prince George, B.C. “at values higher than previously budgeted.”
Tidewater Renewables said it has agreed to sell a total of 125,000 BC LCFS credits at $425 per credit, as compared to the previously disclosed budgeted value of $375 per credit.
“This multi-year agreement, which extends to January 2024, significantly reduces the value realization risk on a portion of the BC LCFS credits that Tidewater Renewables will receive, realizing total proceeds of over $53-million over the term of this agreement,” the company stated.
The company said it continues to work on other potential multi-year agreements to monetize further credits that it will receive from the construction and operation of the complex, from its Canola Co-Processing Facility, and from other projects.
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Mind Medicine Inc. (MNMD-Q; MMED-NEO), a biotech company developing psychedelic-inspired therapies, reported a third-quarter net loss of US$24.3-million compared to US$8.6-million for the same period last year. The expectation was for a loss of US$16-million, according to S&P Capital IQ.
The company stated that its total assets as of Sept. 30, were US$178.6-million, including US$145.9-million in cash, as compared to US$85.6-million, including US$80.1-million in cash, as of Dec. 31, 2020.
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Argonaut Gold Inc. (AR-T) reported revenue of US$108.6-million for the third quarter, up from US$94.4-million a year earlier.
Net income of US$15-million or 5 cents per share for the third quarter compared to net income of US$13.4-million or 5 cents a year ago. Adjusted net income of $17.4-million or 6 cents per share, ahead of expectations of 5 cents and compared with $12.2-million or 4 cents per share a year ago.
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Emerita Resources Corp. (EMO-X) announced that well-known mining investor Eric Sprott has exercised all of his outstanding Emerita common share purchase warrants for total proceeds to the company of just over $2-million.
“Emerita is fortunate to have the support of Mr. Eric Sprott as our largest shareholder,” stated Emerita CEO David Gower. “It is important to our business to have stable, long-term support from such a highly experienced and successful investor. Mr. Sprott’s ongoing support strengthens the company’s ability to accelerate the development of its projects in Spain.”
Mr. Eric Sprott, through his 2176423 Ontario Ltd. corporation, exercised about 6.8 million warrants at an exercise price of 30 cents per common share. Following the completion of the exercise of his warrants, Mr. Sprott owns and controls about 20.4 million shares representing approximately 10.7 per cent of the issued and outstanding shares on a non-diluted basis, the company stated.
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Forsys Metals Corp. (FSY-T) announced it has appointed Bacchus Capital Advisers to conduct a strategic review of the company’s 100-per-cent owned Norasa Uranium Project in Namibia, Africa.
“The decision to undertake a strategic review of Norasa has been prompted by the ongoing developments in the uranium market and the structural misalignment of flat or declining supply versus growing demand,” the company stated in a release.
It said the strategic review will “consider, evaluate and compare a broad selection of potential options for the purpose of identifying opportunities to maximize the value of Norasa for the company’s shareholders.”
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Village Farms International, Inc. (VFF-T; VFF-Q) announced that it has acquired 70-per-cent ownership of privately-held, Quebec-based, Rose LifeScience, a cannabis producer and supplier in Québec. The transaction is valued at up to $46.7-million, the company stated, adding that Rose becomes the Québec operational unit of Village Farms’ Canadian cannabis business segment.
“The acquisition of Rose – by far the most successful Québec-based cannabis operator in our view – is a prudent and strategic means by which to enter, and rapidly ramp sales, in one of Canada’s largest provincial cannabis markets,” stated Village Farms CEO Michael DeGiglio in a release.
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CloudMD Software & Services Inc. (DOC-X) announced a friendly deal to buy MindBeacon Holdings Inc. (MBCN-T), a digital mental health care platform, in a cash-and-share deal valued at about $116-million.
Under the terms of the deal, each common share of MindBeacon will be exchanged for $1.22 of cash and 2.285 common shares of CloudMD. The implied offer price of $4.78 and premium of 49 per cent is based on the 7-day volume-weighted average price of the common shares of MindBeacon as of Nov. 12, the company stated.
“We continue to rapidly execute on our product roadmap through strategic acquisitions to build a leading North American healthcare and wellness offering. MindBeacon’s mental health services and iCBT platform adds another important capability to our robust healthcare ecosystem and further positions us with a leading, clinically-validated mental health solution,” stated CloudMD CEO Dr. Essam Hamza.
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Liquor and cannabis retailer Alcanna Inc. (CLIQ-T), which is being bought by Sundial Growers Inc., said its third-quarter same-store liquor sales from continuing operations came in at $145.4-million, 5 per cent lower than the year-ago period.
Sales were $184.6-million versus $177-million a year ago and below analysts’ expectations of $193.7-million, according to S&P Capital IQ. Its net loss was $3.7-million or 4 cents per share versus a profit of $1.1-million or 3 cents a year ago.
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Apollo Healthcare Corp. (AHC-T), a private label manufacturer of personal care products such as soap and hand sanitizer, reported third-quarter revenues of $31.5-million and $115.4-million down from $90.2-million a year ago.
The company said last year’s revenue was higher amid a surge in demand for its products during the onset of the COVID-19 pandemic, adding the demand “has now returned to comparatively lower levels and is expected to accelerate into fiscal 2022.”
Net income was $2-million or 3 cents per share down from $28-million or 38 cents a year ago.
The company announced earlier this month that it plans to be acquired by Anjac SAS in a $327-million all-cash deal.
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Nexus Real Estate Investment Trust (NXR.UN-T) reported third-quarter property revenues of $20.7-million versus $15.1-million a year earlier. Net operating income was $14.1-million compared to $9.9-million a year ago.
The REIT reported a net loss of $12.1-million versus a profit of $4.8-million a year ago.
Adjusted funds from operations were $9.1-million or 17 cents per unit, which was in line with expectations and compared with $6-million or 18 cents per unit a year ago.
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Dundee Corp. (DC.A-T), an investment company focused on the mining sector, reported third-quarter revenues of $4.8-million down from $5.1-million a year ago.
Its net loss was $48.2-million or 56 cents per share compared to earnings of $15.9-million or 14 per share a year ago.
“Dundee made significant progress in the third quarter of 2021 against all three of our strategic pillars: doing more mining deals, rationalizing our legacy portfolio of non-core assets, and streamlining our cost structure,” stated CEO Jonathan Goodman in a release.
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Pure Gold Mining Inc. (PGM-X) reported third-quarter revenue of $15.9-million compared to zero revenues a year ago. The company said commercial production started in August.
Its net loss was $13.2-million or 3 cents per share versus a loss of $9.7-million or 2 cents a year ago.
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Filo Mining Corp. (FIL-T) reported a net loss of $9.1-million or 8 cents per share, which was in line with expectations and compared to a loss of $2.5-million or 2 cents a year ago.
The company said the loss in the most recent quarter included primarily $8.7-million in exploration and project investigation costs and $3.1-million in general and administrative costs, partially offset by a gain of approximately $2.5-million resulting from the use of marketable securities for the purposes of facilitating intragroup funding transfers.
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Buhler Industries Inc. (BUI-T), which manufactures and sells agriculture equipment, reported revenue of $58.4-million for its fourth quarter ended Sept. 30, down from $63.9-million a year.
Its net loss was $700,000 or 3 cents per share compared to a loss of $12.4-million or 49 cents a year ago for the same period in 2020.
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More to come
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