Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Vermilion Energy Inc. (VET-T; VET-N) announced plans to reinstate a 6-cent per share quarterly dividend starting in early 2022, which it believes will be “sustainable through various commodity cycles.”
It also said the level and provides excess free cash flow to help with further debt reduction and additional return of capital beyond the current dividend.
Vermillion also announced the acquisition of an incremental 36.5-per-cent interest in the Corrib Natural Gas Project for US$434-million, before closing adjustments and contingent payment.
It said the Corrib acquisition will “significantly enhance” its free cash flow and ability to return additional capital to shareholders.
“As we approach and achieve further debt and leverage targets, it is our intention to augment our return of capital to shareholders through one or a combination of base dividend increases, special dividends and/or share buybacks,” the company stated.
Fire & Flower Holdings Corp. (FAF-T) announced that, in connection with the potential additional listing of its common shares on the Nasdaq, it has filed articles of amendment implementing a consolidation of the shares on the basis of 10 pre-consolidation shares for every one post-consolidation share. It said the consolidation was previously approved by the company’s shareholders in June.
“The share consolidation is an important step in our U.S. expansion strategy,” stated CEO Trevor Fencott. “It enables Fire & Flower to qualify for a listing on the NASDAQ and expand its shareholder base which, in turn, provides the Company with increased flexibility and enhanced liquidity to accelerate its strategic growth plans.”
Mr. Roshan will continue to act as a strategic advisor to the company’s board of directors, the company stated. It also said Gervais Jacques has been appointed interim president and CEO. He is the former managing director of Rio Tinto Aluminum and currently serves as chairman of the board of Nemaska Lithium and Airex Energy, and is a board member of Alliance Magnesium.
The company said the year-over-year decrease in net loss is mainly due to funding gains realized in the latest quarter and the write down of the Nacimientos properties during the 2020 comparative period following its decision to withdraw from its option to earn into the properties in August 2020.
The company said its board believes that the recent trading price of the shares “is not fully reflective of their intrinsic value” based on the value of the company’s assets and “its business and future prospects.”
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