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Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.

CannTrust Holdings Inc. (TRST-T; CTST-N) announced it received a report from Health Canada notifying the company that its manufacturing facility in Vaughan, Ont. has been rated non-compliant with certain regulations. CannTrust stated that is has accepted Health Canada’s findings “and remedial actions are underway.”

The company said Health Canada's rating was based on observations made during an inspection completed from July 10-to-16. "As previously announced, the company implemented a voluntary hold on the sale and shipment of all cannabis products while Health Canada reviewed its Vaughan, Ont. manufacturing facility. CannTrust continues to work closely with Health Canada and will provide further details of the hold and other developments as they become available."

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Canopy Rivers Inc. (RIV-X) announced that it has received conditional approval to graduate to the Toronto Stock Exchange from the TSX Venture Exchange. “This represents another important milestone for Canopy Rivers and demonstrates the Company’s continued growth and commitment to driving shareholder value,” said Narbe Alexandrian, CEO of Canopy Rivers, in a release. “We believe that a TSX listing will substantiate our strong commitment to corporate governance and provide us with exposure to a broad new investor base that will enhance liquidity.”

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Air Canada (AC-T) says it will spend more to buy Transat A.T. Inc. (TRZ-T) upping its total offer by $200-million and winning the support of the tour company’s largest shareholder.

The new deal sees Air Canada spending $18 per share, rather than $13, bringing the total offer to roughly $720-million, up from a previously announced bid worth $520-million. Air Canada says it now has the backing of Letko Brosseau and Associates Inc., Transat's largest shareholder, which holds just over 19 per cent of outstanding shares. The investor previously said it would not support the deal if the purchase price remained at $13 per share.

The initial bid was announced in June, and will go to the shareholders for a vote on Aug. 23. The Air Canada deal also needs to secure approval from regulators, including Transport Canada and the Competition Bureau.

-The Canadian Press

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A company controlled by B.C. billionaire Jim Pattison plans to take forestry firm Canfor Corp. (CFP-T) private with a $980-million cash offer. Great Pacific Capital Corp. is offering $16 a share for Vancouver-based Canfor’s stock that it doesn’t already own, or 82 per cent higher than the close of $8.80 on Friday.

“The elimination of the significant administrative expenses incurred in maintaining a public company listing in Canada will allow for reinvestment of these funds into stabilization of the company’s operations,” Great Pacific said in a statement late Sunday. The statement also says that Canfor is facing strategic and capital decisions that are “best suited to a private company with a long-term focus.”

Canfor issued a statement on Sunday night cautioning its shareholders that the "indicative offer" is non-binding on Great Pacific and that's there's no certainty that offer or "any other strategic transaction with Great Pacific or any other person" will be pursued by the company.

The board has constituted a special committee of independent directors to review the offer "and, in consultation with its legal and financial advisors, consider Canfor's strategic alternatives, including Canfor's response, if any," to the offer.

- with files from Brent Jang

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Lundin Gold Inc. (LUG-T) reported a loss of US$30.8-million or 14 cents US per share in the second quarter, versus a profit of US$19.7-million or 9 cents US per share a year ago. Analysts were expecting a loss of 4 cents US in the latest quarter.

During the second quarter of 2019, the company said it recorded a derivative loss of US$24.7-million compared to a derivative gain of US$18.8-million in the second quarter of 2018 relating to its long-term debt. "In addition, with the hiring of operating personnel and starting in the fourth quarter of 2018, the company is now incurring training costs as training programs for operations have begun," it stated in a release.

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AgraFlora Organics International Inc. (AGRA-C) announced it plans to make a takeover offer for Eviana Health Corp. (EHC-C)

The offer will provide holders of Eviana Shares with 1.694915 AgraFlora shares for each Eviana share based on the offer price of 50 cents per Eviana share and the closing price of AgraFlora shares of 29.5 cents on Aug. 9, the company stated. It said the offer was a "significant and immediate" 49.25-per cent premium to the market price.

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The company said it presented Eviana’s board of directors with a proposal to explore "a mutually agreeable business combination" on July 26.

"Although the Eviana board failed to respond to proposal, AgraFlora would still welcome a transaction supported by the Eviana board, and looks forward to engaging the Eviana board to deliver significant value to Eviana shareholders," it stated. "However, at this time, the rationale for the combination is too strong to accept inaction."

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The Second Cup Ltd. (SCU-T) announced that it has amended its investment agreement with four separate holding companies controlled by Michael Serruya, Aaron Serruya, Jacques Serruya and Simon Serruya, among others. “The amendment deletes the provision of the investment agreement granting the Investors’ representative the right to designate two nominees for director of the company for so long as any Investor (or the Investors collectively) owns 20 per cent of the corporation’s common shares and one nominee if the investors’ collective ownership is below 20 per cent but is greater than or equal to 10 per cent,” the company stated.

The Second Cup said it does not expect the amendment to result in any changes to the current composition of its board of directors.

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Diversified Royalty Corp. (DIV-T) announced that Bryan Pearson has departed as CEO of LoyaltyOne, Co., the operator of the Air Miles Reward Program in Canada, effective August 9. LoyaltyOne’s parent company Alliance Data Systems Inc. announced Mr. Pearson’s departure a new release and said chairman Charles Horn will oversee LoyaltyOne on an interim basis. Blair Cameron will continue to serve as president of the program.

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Surge Energy Inc. (SGY-T) announced second-quarter sales of $107.7-million up from $87.1-million a year ago and ahead of expectations of $103.2-million. Adjusted funds flow was $50.7-million, an increase of 31 per cent as compared to the same quarter last year. Adjusted FFO per share was 16 cent compared to 17 cents a year ago.

The company also promoted Jared Ducs to chief financial officer effective Aug. 9.

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Theratechnologies Inc. (TH-T) announced that it has applied to list its common shares on Nasdaq. “We believe that being listed on Nasdaq will help to foster interest from more potential investors and financial analysts and that it should result in increased liquidity for investors,” said Philippe Dubuc, chief financial officer.

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Auxly Cannabis Group Inc. (XLY-X) announced that its president Hugo Alves will succeed Chuck Rifici as CEO, effective Aug. 27. Mr. Rifici will continue to serve as chairman of Auxly’s board.

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Hydrogenics Corp. (HYGS-Q; HYG-T) reported revenue of US$10.4-million for the second quarter, which it said was a 37-per-cent increase over the same period in 2018. Its net loss was $4.8-million or 25 cents per share versus a net loss of US$4.8-million or 31 cents per share a year ago. Analysts were expecting revenue of $12-million and a loss of 11 cents per share in the latest quarter.

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Invictus MD Strategies Corp. (GENE-X) announced that rock star Gene Simmons “has abdicated” his position as the company’s chief evangelist officer. “It has been a pleasure to work with Gene. He has been a valuable asset to the company,” said CEO Trevor Dixon.

Mr. Simmons continues to be a shareholder in Invictus, the company said. “I have enjoyed my time with Invictus,” Mr. Simmons stated in the release. “I remain a big fan!”

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NFI Group Inc. (NFI-T) says its America division has won a new contract for 75 clean-diesel, forty-foot Xcelsior heavy-duty transit buses for Pace Suburban Bus. “The new fleet will replace older buses currently in operation, while growing Pace’s service footprint to support its Vision 2020 strategic plan which outlines a more efficient long-range network that is convenient and easy for passengers to understand,” the company stated.

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