Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
National Access Cannabis Corp. (NAC-X) has struck an alliance with The Second Cup Ltd. (SCU-T) to develop and operate a network of NAC-branded recreational cannabis dispensaries initially across Western Canada, “expanding to include additional provinces where legally permissible.”
According to a release, NAC will apply for licenses to dispense cannabis products and “work with Second Cup and applicable franchisees to leverage Second Cup’s extensive Canadian retail footprint to construct retail stores carrying leading cannabis products.”
Those include products supplied by CannaRoyalty Corp. (CRZ-T), California’s largest legal distributor of cannabis products.
“Conversion of any Second Cup café to an NAC-branded recreational cannabis dispensary will be conditional on obtaining a retail license from provincial regulators and the approval of Second Cup and the applicable franchisee and landlord,” the company said.
“With exceptional quality real estate located across Canada, our alliance with Second Cup will offer consumers access to quality cannabis products and the superior service in the comfortable setting they’ve come to expect from NAC,” said Mark Goliger, CEO of National Access Cannabis.
As part of the agreement, NAC has issued to Second Cup warrants to purchase an aggregate of 5 million common shares of the company.
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Aecon Group Inc. (ARE-T) says Mosaic Transit Group has been selected by Metrolinx and Infrastructure Ontario as preferred proponent for the Finch West Light Rail Transit (LRT) project in Toronto.
Mosaic Transit Group includes Aecon, ACS Infrastructure Canada Inc. and CRH Canada Group Inc. as equal partners in the equity and construction of the project. Aecon and ACS Infrastructure Canada Inc. each have a 50-per-cent interest in the 30-year maintenance agreement for the LRT, the company stated.
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The North West Company Inc. (NWC-T) updated its earnings following additional guidance for computing the Deemed Repatriation Transition Tax in a section of the recently passed U.S. Tax Cuts and Jobs Act.
“As a result of this guidance, the company recorded an additional estimated transition tax of $1.9-million on the accumulated undistributed earnings and profits of foreign subsidiaries in its annual audited consolidated financial statements for the year ended January 31, 2018,” the company said. “This adjustment increased income tax expense and decreased net earnings by $1.9-million from the amounts previously reported in the fourth quarter unaudited interim consolidated financial statements for both the fourth quarter and the year ended January 31, 2018.”
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Argonaut Gold Inc. (AR-T) says its La Colorada mine has had its permit for the use of explosives at the site temporarily suspended due to pending legal action brought by four individuals against the Secretary of National Defense and the Municipality of La Colorada. “Activities at [the] site continue unaffected due to the availability of blasted and stockpiled material adequate to allow for operations to continue normally,” the company stated. “Stockpiles are sufficient that operations will continue normally through at least April 16, 2018, at which time there is a hearing scheduled where Argonaut hopes to resolve the issue.”
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Goodfood Market Corp. (FOOD-T), a Canadian meal-kit company, reported second-quarter revenue of $15.7-million up from $3.7-million a year earlier. Its net loss was $2.4-million or 5 cents per share in the quarter ended Feb. 28, versus a loss of $1.8-million for the same quarter a year earlier.
Active subscribers reached 61,000 as at Feb. 28, 2018, up from 13,000 as at Feb. 28, 2017. During the second quarter, Goodfood added 16,000 net new subscribers, an increase of 36 per cent from Nov. 30, 2017.
Analysts were expecting a loss of 3 cents and revenue of $16.1-million.
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Brick Brewing Ltd. (BRB-T) reported fourth-quarter revenue of $10.7-million compared to $10.5-million a year ago. Analysts were expecting revenue of $11.3-million. The company said its EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter was $1.81-million, compared to prior year EBITDA of $1.77-million.
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Lucara Diamond Corp. (LUC-T) announced the recovery of a 472-carat, “top light brown gem diamond,” which the company said was the third-largest diamond ever recovered from its 100-per-cent owned Karowe Diamond Mine in Botswana.
“In 2018, mining at Karowe is focused in the high-value south lobe, which consistently delivers large, high-quality diamonds in excess of 10.8 carats in size,” stated CEO Eira Thomas in a release. She said the diamond will be sold alongside other “exceptional stones” recovered since the beginning of the year.