Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

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

Aurora Cannabis Inc. (ACB-T) announced that co-founder Steve Dobler will retire from his roles as president and director of the company, effective June 30. With the retirement of Mr. Dobler, the board currently has nine directors, seven of whom remain independent, the company stated.

**

Story continues below advertisement

Transcontinental Inc. (TCL.A-T; TCL.B-T) announced the acquisition of Enviroplast Inc., a company dedicated to recycling flexible plastics in Quebec. The company said the equipment acquired will be used for converting plastic waste recovered from sorting facilities and other commercial, industrial and agricultural sources into recycled plastic granules.

"The corporation's goal, which is also the goal of many of its customers, is to differentiate itself by offering eco-responsible packaging products that contain recycled plastic, to accelerate their development and to create a true circular economy of plastic that is beneficial from an environmental, economic and social standpoint," it stated in a release.

**

Rocky Mountain Dealerships Inc. (RME-T) announced a reduction in its quarterly dividend to $0.015 per common share, payable on June 30 to shareholders of record on June 23.

On April 29, the company said it anticipated reducing its quarterly dividend to "no more than $0.06 per share" in response to COVID-19, and oil and "capital markets realities," down from $0.1225 per share

It said the $0.015 per share reflects the board’s "deliberate caution in respect of emerging data and trends in both the agriculture equipment market and the broader economy being affected by global economic uncertainties," adding that it believes it's a "prudent move in unprecedented global economic uncertainty when the economic recovery outlook is difficult to predict and extremely complex."

The company also said the reduced dividend generates cash savings of approximately $8.3-million on an annualized basis.

Story continues below advertisement

**

Cardinal Resources Limited (CDV-T) says it remains in discussions with parties regarding a potential strategic transaction. “Whilst discussions in relation to any potential transaction remain ongoing, at this time no agreement has been entered into in relation to any transaction and there can be no guarantee that any agreement will be entered into,” it stated in a release in response to a “local Ghanaian media article with respect to potential strategic alternatives.”

Cardinal stated that shareholders "should be cautious in trading on media speculation," adding that, "shareholders do not need to take any action in relation to the strategic process."

**

Fire & Flower Holdings Corp. (FAF-T) announced revenue of $23.1-million for its first quarter ended May 2, compared to $9.5-million for the same quarter a year ago and ahead of expectations of $19.7-million.

Its net loss was $12.7-million or 8 cents per share versus a loss of $17-million of 17 cents a year earlier.

Story continues below advertisement

**

DavidsTea Inc. (DTEA-Q) says it may pursue a formal restructuring that partly depends on landlord negotiations as the company looks to close some of its unprofitable locations.

“Our challenge is to execute on our strategy to restructure our North American retail footprint in order to decrease the ongoing losses caused by unprofitable stores,” said Herschel Segal, interim chief executive, during a conference call Monday after the company released its fourth-quarter and full-year financial results.

“If we are not successful in negotiations with our landlords to optimize our retail footprint to reflect the new circumstances, we may need to pursue a formal restructuring in order to do so.”

The company has not paid rent at any of its stores for April, May or June. All its stores have been closed since March 17 due to the COVID-19 pandemic, and it cannot yet predict when, if and how many of its retail locations will open.

Subsequent to year-end, DavidsTea did not renew three store leases in Canada and exited one store early in the U.S. It is negotiating to exit eight more stores.

Story continues below advertisement

As of Feb. 1, the company had 231 stores, according to its financial documents.

The commentary came as the retailer announced a net loss of $5.7 million or 21 cents per fully diluted common share for the quarter ended Feb. 1, compared with a $13.3 million net loss or 51 cents per share in the same quarter of last year.

Adjusted net income for the quarter was $1.9-million or 12 cents per share, down from $6.4-million or 25 cents per share in the fourth quarter of the previous year.

Sales for the quarter totalled $73.5-million, down 11.6 per cent from $83.1-million.

DavidsTea noted e-commerce and wholesales sales grew by $2.8-million or 18.5 per cent for the quarter, while retail sales declined $12.4-million.

-The Canadian Press

Story continues below advertisement

**

Charlotte’s Web Holdings, Inc. (CWEB-T) announced a $67.5-million underwritten public offering. The company said it has an agreement with a syndicate of underwriters that has agreed to purchase 10 million units at $6.75 each.

Each unit will include one common share and one half of one common share purchase warrant exercisable to acquire one common share for two years at an exercise price of $8.50.

The company said net proceeds are expected to be used primarily to fund its business development and for general working capital purposes.

**

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Follow related topics

Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies