Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
High Tide Inc. (HITI-X) announced that it will acquire 80 per cent of NuLeaf Naturals, LLC for US$31.2-million in shares and will have a three-year option to acquire the remaining 20 per cent at any time.
The arm’s length transaction implies an enterprise valuation of US$39-million representing 7.1 projected 2021 adjusted EBITDA and recognition for US$1.7-million recently spent on upgrading NuLeaf’s cGMP-certified facility, the cannabis company stated.
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Canada Nickel Company Inc. (CNC-X) announced it has concluded 18 separate transactions resulting in the outright acquisition or earn-in to 13 additional target properties within a radius of 95 km of its flagship Crawford nickel-sulfide project. the company said the transactions consolidate its position in the Timmins area.
“The consolidation of these properties underscores our strong belief in the district-scale potential of the Timmins region and in our journey to become a leader of the next generation of nickel supply,” stated CEO Mark Selby.
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Bragg Gaming Group Inc. (BRAG-T) announced that its ORYX Gaming division has been granted a U.K. license, which it says is “a significant milestone” that will see the company enter what it says is one of the world’s most mature online gaming markets.
“The supplier license, awarded by the United Kingdom Gambling Commission (UKGC), will enable Bragg’s ORYX Gaming to provide its content to a wide range of operators, including some of the biggest and most established brands in the industry,” the company stated.
It said the total addressable market (TAM) for the online casino sector in the U.K. in 2021 is approximately US$5.5-billion, according to H2 Gambling Capital, “making it the largest regulated iGaming market in the world.”
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Ayr Wellness Inc. (AYR.A-T), a U.S. cannabis operator, reported third-quarter revenues of US$91.3-million up from US$45.5-million a year ago. Analysts were expecting revenue of US$99.4-million, according to S&P Capital IQ.
Its net loss was US$3.4-million or 6 cents per share versus a profit of US$620,373 or 2 cents a year ago.
The company is forecasting fourth-quarter revenue growth of over 10 per cent sequentially. Adjusted EBITDA is expected to remain roughly flat, the company said, as it continues its investments in “branding, new markets and growth projects, and the centralized corporate resources to support growth.”
The company is also revising its 2022 adjusted EBITDA guidance to a range of US$250-million US$300-million, which it says reflects delays in capital projects “and the impact on results should recent wholesale market price volatility persist into 2022.” Its previous guidance was for about US$300-million in adjusted EBITDA. It’s also reiterating its target for 2022 revenue of US$800 million.
The company also announced an agreement to acquire Gentle Ventures, LLC d/b/a Dispensary 33 in Chicago. It said the transaction is expected to include US$55 million upfront, including US$12-million of cash, US$3-million of sellers notes and US$40-million of stock. It said an earn-out is payable if certain adjusted EBITDA performance is achieved through the third quarter of next year.
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MedMen Enterprises Inc. (MMEN-C), a U.S. cannabis retailer announced the appointment of Michael Serruya as chairman and interim CEO, effective immediately.
Serruya succeeds outgoing chairman and CEO Tom Lynch, who held the position since 2020 “and oversaw the company’s operational turnaround,” the company stated.
Serruya joined MedMen’s board in August as part of a US$100-million investment in the company by Serruya Private Equity “to expand its operations in key markets and identify and accelerate further growth opportunities across the U.S., the company stated.
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Hamilton Thorne Ltd. (HTL-X) reported third-quarter sales of US$12.7-million, up 30 per cent from a year ago and slightly below expectations of US$13.1-mllion, according to S&P Capital IQ.
The biotech company said net income was US$249,000 up from US$459,000 a year ago. Adjusted EBITDA increased 22 per cent to $2-million.
The company provides precision instruments, consumables, software and services to the assisted reproductive technologies (ART), research, and cell biology markets.
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