Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Pet Valu Holdings Ltd. (PET-T) raised its guidance for the year, driven by strong third-quarter performance, and initiated a dividend.
The company, which went public in late June, said its revenue was $200.7-million in the third quarter, up from $159.8-million a year earlier.
Net income was $24.3-million, up from $8.7-million in the prior year. Adjusted net income was $27.7-million or 39 cents per share, which was above expectations of 23 cents and compared to 18 cents a year ago.
The board declared an inaugural quarterly dividend of a penny per common share.
The company also raised its 2021 guidance: It now expects revenue of approximately $765-million, up from $730-million previously, which it said is supported by same-store sales growth slightly above 15 per cent.
It also expected adjusted EBITDA of approximately $177-million, up from $158-million and adjusted net income of approximately $69-million, or 97 cents per diluted share, up from $56 million, or 78 cents per share.
Bus manufacturer NFI Group Inc. (NFI-T) announced that it has increased the size of its bought-deal financing, citing strong demand.
The bought deal offering of unsecured convertible debentures has increased from $250-million to $300-million, at a price of $1,000 per debenture, with an interest rate of 5 per cent annually and a conversion price of $33.15 per common share. The debentures will mature on Jan. 15, 2027. The financing includes a concurrent $150-million equity offering.
The net proceeds will be used to repay debt.
Artemis Gold Inc. (ARTG-X) announced that it has received an offer to enter into a definitive precious metals purchase agreement with Wheaton Precious Metals Corp. (WPM-T) related to its Blackwater Gold Project in B.C.
Under the terms of the agreement, Wheaton will purchase 50 per cent of the silver production from the mineral reserves of Blackwater until approximately 18 million ounces of silver have been delivered, after which the stream reduces to 33 per cent of the silver production for the life of mine. Wheaton will make an up-front deposit payment in cash of approximately US$141-million, payable in tranches during the major works construction of the project, subject to certain conditions.
In addition, Wheaton will make ongoing payments equal to 18 per cent of the spot silver prices until the up-front deposit payment is reduced to zero, and 22 per cent of the spot silver prices thereafter, the company said.
The company said the offer letter and agreement have been submitted to New Gold Inc. (NGD-T), which has a right of first refusal agreement related to the project.
Nexus Real Estate Investment Trust (NXR.UN-T) announced a $141-million bought-deal treasury and second-equity offering to “fuel its transition to a pure-play industrial REIT.”
The REIT said it has an agreement to sell to a syndicate of underwriters, led by BMO Capital Markets and Desjardins Capital Markets, 11 million units of the REIT at a price of $12.85 each. The units closed at $13.40 on Monday on the TSX.
The REIT said it plans to use the net proceeds to fund future acquisitions and for general corporate purposes. The REIT also said will not receive any proceeds from the secondary offering.
It also announced it is in negotiations on potential acquisitions of seven industrial properties totaling approximately 1.7 million square feet for an aggregate purchase price of approximately $315-million, at a blended going-in capitalization rate of approximately 4.7 per cent.
Slate Office REIT (SOT.UN-T) announced an agreement to acquire Yew Grove REIT Plc. a dual-listed REIT on the Euronext Dublin (Ireland) and London stock exchanges, in a deal valued at $254.8-million (€177.4 million). Yew Grove owns a portfolio of 23 office, life sciences and lite-industrial properties located in Ireland.
“This is a transformational opportunity for Slate Office REIT to acquire a portfolio of modern properties underpinned by exceptional quality tenants,” said Steve Hodgson, CEO of Slate Office REIT, adding the deal would “improve the REIT’s portfolio metrics and the durability of our cash flows, generating immediate accretion for unitholders. With this initial acquisition in Ireland, we would be well-positioned to pursue other attractive growth opportunities across Europe.”
Well Health Technologies Corp. (WELL-T) announced a $65-million bought-deal offering of convertible debentures.
The Vancouver-based said the financing will be led by Eight Capital and Scotiabank together with a syndicate of underwriters. The company said it has received “an indication of interest for a lead order in connection with the offering from a large Canadian pension fund manager.”
It intends to use the net proceeds “to fund growth initiatives, including to complete potential future acquisitions, to repay indebtedness, and for working capital and general corporate purposes.”
Interior construction company Dirtt Environmental Solutions Ltd. (DRT-T) announced a $35-million bought-deal financing of convertible unsecured subordinated debentures. It said the financing is with a syndicate of underwriters led by National Bank Financial Inc.
The company said it plans to use a portion of the net proceeds, together with cash reserves on hand, to fund its anticipated 2022 capital expenditure program of approximately US$7-million. It said remaining proceeds are expected to be used to support continued funding of its manufacturing and commercial activities “as the COVID-19 pandemic recovery occurs, and to provide incremental liquidity to support the Company’s operations and growth objectives.”
Timbercreek Financial Corp. (TF-T) announced a $40-million bought-deal offering of convertible debentures. It said has an agreement with a syndicate of underwriters led by National Bank Financial Inc. and TD Securities Inc. to purchase the convertible unsecured subordinated debentures.
Timbercreek said it intends to use the net proceeds to repay debt and for general corporate purposes.
Vintage Wine Estates, Inc. (VWE.U-T) announced the acquisition of ACE Cider, The California Cider Co., which it called “the first family-owned cider company in the U.S. and among the fastest-growing craft cider brands in the country.”
“This strategic acquisition adds an innovative product line to our RTD (ready-to-drink) category and brings us access to a significant new sales channel for distribution, through which we expect we can push many of our brands,” stated Pat Roney, VWE CEO, in a release. The price of the acquisition wasn’t provided.
The company said the transaction will add more than one million cases to its annual sales volume, and said ACE currently has annual revenue of over US$20-million and has achieved a double-digit compound annual growth rate over the last five years.
Neptune Wellness Solutions Inc. (NEPT-T) announced the results of a strategic review including a “comprehensive action plan” to “unlock shareholder value.”
The company said the plan includes “short-term and long-term cost-cutting initiatives and the immediate reorganization of Neptune’s operations and resources,” which are expected to save about $12.5-million annually.
The company said it will prioritize three core product lines and operations: Sprout Foods, cannabis and its Biodroga business unit.
Invesque Inc. (IVQ-T) announced that it has sold a five-property portfolio in the U.S. to The Ensign Group for a total of US$93-million. The transaction included a four-property skilled nursing portfolio with 436 beds operated by Ensign and a 144-bed assisted living community operated by The Pennant Group.
The company said the portfolio sold to Ensign was part of Invesque’s Jaguarundi Ventures, LP joint venture between Invesque and Magnetar Capital, of which the corporation owns an approximately 65-per-cent ownership interest. The portfolio sale price provides Jaguarundi JV with approximately US$22-million in net proceeds after the repayment of outstanding debt and transaction costs. As a result of the transaction, neither Invesque nor Magnetar has an ongoing ownership interest in the portfolio. Also, Ensign and Pennant no longer operate any communities owned by Invesque.
The Real Brokerage Inc. (REAX-X; REAX-Q) real estate brokerage said its third-quarter revenue increased 885 per cent to US$38.8-million, compared to $3.9-million in the third quarter of 2020. Analysts were expecting revenue of US$30.2-million.
Its net operating loss was US$1.1-million compared to a net loss of $422,000 a year earlier. Cash flow from operations increased approximately 581 per cent to $1-million compared to the third quarter of 2020, the company said.
“Our third-quarter run-rate is more than $150-million, as we continue to experience growth through the combination of increases in [the] number of agents and revenue per agent,” said Tamir Poleg, co-founder and CEO.
TerrAscend Corp. (TER-C) reported net sales of US$49.1-million for the third quarter, up from US$38.1-million a year earlier.
“This year-over-year growth was driven by the acquisitions of KCR and HMS, cultivation capacity expansions in Pennsylvania, New Jersey, and California as well as an increase in the number of dispensaries from seven to 13,” the company stated.
Its net income was US$62.3-million versus a net loss of US$14.6-million a year ago. The company said net income for the third quarter of 2021 was largely impacted by a non-cash gain on the fair value of warrants of $69-million.
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