Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Great Bear Resources Ltd. (GBR-X) announced late Wednesday that it has an agreement to be acquired by Kinross Gold Corp. (K-T). The takeover talks were reported earlier in the evening by the Globe and Mail.
In a statement, the companies said Great Bear shareholders will receive upfront consideration of approximately $1.8 billion, representing $29 per Great Bear common share on a fully diluted basis. The stock closed at $22.93 on Wednesday.
Great Bear shareholders will be able to elect to receive the upfront consideration in cash or 3.8564 Kinross shares per Great Bear share. Great Bear shareholders will also receive contingent value rights for further potential consideration equal to 0.1330 of a Kinross share per Great Bear common share, representing approximately $58.2-million or $1.00 per Great Bear common share.
“The contingent consideration will be payable in connection with Kinross’ public announcement of commercial production at the Dixie project, provided that at least 8.5 million gold ounces of measured and indicated mineral resources have been disclosed,” the release stated.
The proposed acquisition is payable by way of assumption and repayment of approximately $5.3-million in cash debt owed by Pineapple Express and issuance of about 1,126,761 common shares of Fire & Flower.
Pineapple Express revenue for the trailing 12-month period ended Oct. 31 was approximately $10 million.
“Upon completion of the acquisition, Fire & Flower will have all the necessary components in its business to deliver a full consumer technology platform experience, supported by a network of more than 100 retail stores and full same-day delivery to cannabis consumers,” the company stated.
Transat A.T. Inc. (TRZ-T) reported revenue of $62.8-million for the fourth quarter ended Oct. 31, up from $28.4-million for the same period last year. “This increase results from the partial resumption of operations at a higher level in 2021 compared with 2020,” the company stated.
Its net loss was $121.3-million or $3.21 per share compared with a loss of $238.1-million or $6.31 per share a year earlier.
Analysts were expecting revenue of $117.5-million and earnings of $2.56, according to S&P Capital IQ.
In its outlook, the company said average capacity across its markets for winter 2022 is 60 per cent of 2019 pre-pandemic levels increasing “from 50 per cent to 75 per cent over the course of the season.”
“The corporation continues to apply a series of operational, commercial and financial measures, including cost reduction, aimed at preserving its cash,” it stated.
Mullen Group Ltd. (MTL-T) announced a 25-per-cent increase in its annual dividend. The trucking and logistics company said late Wednesday that the annual dividend will increase to 60 cents per common share from 48 cents, and will continue to be paid monthly.
The company also said it expects revenue for 2022 to be in the $1.6-billion to $1.7-billion range, not including potential acquisitions. Analysts are expecting revenue of $1.75-million, according to S&P Capital IQ. “We base this expectation on the continued economic recovery and stable consumer spending,” the company stated. It also expects operating income before depreciation and amortization will be in the $260-million range.
It also said the board approved a net capital budget of $70-million for 2022.
The Valens Company Inc. (VLNS-T), a cannabis product manufacturer, announced that its application to list its common shares on Nasdaq Capital Market has been approved. The shares are expected to start trading on the Nasdaq under the symbol “VLNS” on Dec. 9.
“Listing on Nasdaq is the next step to our capital markets strategy,” stated CEO Tyler Robson. “We believe this listing will enable Valens and its shareholders greater access to liquidity, increased corporate visibility, and a broader shareholder base, in an effort to create long-term shareholder value.”
The company said it expects the securities to start trading on the TSX sometime before Jan. 26.
Waterloo Brewing Ltd. (WBR-T) said its third-quarter revenue increased 17.8 per cent to $26.9-million, up from $22.8-million in the prior year. Expectations were for revenue of $26-million, according to S&P Capital IQ.
Net income was $738,146 or 2 cents per share versus $965,105 or 3 cents a year ago.
The board also approved a quarterly dividend of $0.0304 per share, an increase of 10 per share payable on Jan. 28 to shareholders of record as of Jan. 14.
The company said it has definitive agreements with “certain institutional investors” for the sale of just over 6.1 million common shares and warrants to purchase up to about 3.1 million common shares (each whole warrant, and each common share and one-half of one Warrant) at a purchase price of US$4.50 per unit.
Each warrant will entitle its holder to acquire one common share of the company at an exercise price of US$4.70 per share for six months, with a term of 36 months following the initial exercise date.
The company said it intends to use the net proceeds for working capital purposes and for potential future acquisitions of or investments.
The company said it’s on the hunt for a new CFO
“I would like to thank Kamini for her contributions to the company as we navigated our inaugural year as a publicly traded company. We wish Kamini the best in her future endeavours,” CEO Mitchell Scott stated in a release.
Ana Silva, the company’s president, has assumed the role of interim CFO and corporate secretary. Ms. Silva is the former CFO of Daiya Foods Inc.
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