Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Canaccord Genuity Group Inc. (CF-T) on Sunday said it will restructure its capital markets business in the United Kingdom, with uncertainty looming over the country as it prepares to exit from the European Union.
The financial services company said the move is expected to result in significant job cuts in its London-based capital markets business.
Canaccord Genuity will record a charge of about $12-million in its fourth quarter as part of the process, the company said.
“A prolonged period of political and market uncertainty in the U.K. has impacted capital raising and related activities in the region resulting in unacceptable returns,” it said in a statement.
The restructuring will not affect its wealth management operations in the U.K. and Europe, Canaccord Genuity added.
The company’s capital markets business in the U.K. operates as Canaccord Genuity Limited.
The largest shareholder in Knight Therapeutics Inc. (GUD-T) launched a proxy fight Monday for control of the $1-billion drug company, following a year-long activist campaign against Canadian pharmaceutical entrepreneur Jonathan Goodman.
Medison Biotech Ltd., a pharmaceutical company based in Israel, owns about 7 per cent of Montreal-based Knight. On Monday, Medison proposed six new directors and the reappointment of its own chief executive to the company’s board. Knight has a seven person board that includes Medison CEO Meir Jakobsohn.
The proxy fight comes less than two weeks after Knight launched a lawsuit against Medison and Mr. Jakobsohn aimed at shutting down their activist campaign, which has been playing out for over a year.
- Andrew Willis
WeedMD Inc. (WMD-X) announced that it has entered into a credit facility with Bank of Montreal. “Under the terms of the credit facility, BMO will provide WeedMD up to $39-million of secured debt financing at a rate of interest that is expected to average in the low-to-high 5% per annum range over a three-year term,” the company stated.
“Securing BMO’s support at this exciting juncture in WeedMD’s growth provides market validation in our ability to continue to execute our strategic plan with non-dilutive financing,” said Keith Merker, CEO of WeedMD.
High Liner Foods Inc. (HLF-T) announced that its chairman Henry Demone will retire from the board after the company’s annual meeting on May 14. The board intends to appoint Robert Pace as chairman at that time, the company stated.
Imperial Metals Corp. (III-T) reported revenue of $91.7-million in the fourth quarter compared to $140.5-million in 2017. Its net loss in the quarter was $44.3-million or 37 cents per share compared to net loss of $2.1-million or 2 cents in the prior-year quarter. “The fourth quarter of 2017 involved $35-million of the net income related to the finalization of the gain on bargain purchase of Huckleberry and revaluation of equity investment in Huckleberry,” the company stated.
"Mr. McMullen has over 25 years of international experience in the mining industry with an accomplished background in all aspects of the mining business, including exploration, permitting, mine development, financing, operations, product sales, and asset acquisition and divestments as well as the debt and equity markets," the company stated.
Ensign Energy Services Inc. (ESI-T) announced that its Ensign Drilling Inc. subsidiary intends to offer US$700-million aggregate principal amount of senior notes due 2024, subject to market and other conditions.
"Ensign intends to use the net proceeds of the offering and cash on hand to repay all outstanding loans under Ensign's existing senior loan facility and to pay related fees and expenses," the company stated.
Village Farms International, Inc. (VFF-T; VFF-Q) announced that its 50-per-cent-owned joint venture, Pure Sunfarms, has exercised its option on the existing 1.1 million square foot Delta 2 greenhouse facility currently owned by Village Farms in Delta, B.C. “The addition of the Delta 2 greenhouse operation doubles Pure Sunfarms’ total production area to 2.2 million square feet and, with conservatively targeted annual production of approximately 75,000 kilograms of dried cannabis, doubles its annual cannabis production potential to approximately 150,000 kilograms,” the company stated.
“This strategic acquisition will supply Harvest One with high-quality greenhouse-grown cannabis from Greenbelt’s 152,000 sq. ft. facility,” the company stated. “The transaction ensures that Harvest One remains a vertically integrated house of brands by controlling the production of cannabis through cultivation and extraction, and ultimately to packaged good[s] for consumers.”
Cresco Labs Inc. (CL-C) is buying Origin House (OHC-C) in a deal valued at $1.1-billion, in what the company describes as “the largest public company acquisition in the history of the U.S. cannabis industry.”
Under the terms of the agreement, holders of common shares of Origin House will receive 0.8428 subordinate voting shares of Cresco Labs for each Origin House share. The transaction represents a total consideration of approximately $1.1-billion on a fully-diluted basis, or $12.68 per Origin House share, based on the Exchange Ratio and the closing price of Cresco Labs Shares on March 29, the company stated.
SOL Global Investments Corp. (SOL-C) announced the termination of its agreement with Verano Holdings, LLC to sell a 100-per-cent interest in 3 Boys Farms LLC, a Florida-licensed medical cannabis company.
“On March 11, 2019, Harvest Health & Recreation Inc. announced it would be acquiring Verano, and Harvest already owned a Florida medical marijuana treatment center license,” SOL Global stated. “This acquisition ultimately led to Verano requesting to terminate the binding agreement it had with SOL Global, and SOL Global determined it was in its best interest to endorse the Harvest-Verano transaction. After good faith negotiations, the parties involved have elected not to close on the US$100-million binding contribution agreement for 3 Boys Farms and have finalized agreeable terms for the termination that SOL Global considers favorable for its shareholders.”