Our roundup of Canadian small-caps of between $100-million and $3-billion in market capitalization making news
Ignite International Brands, Ltd. (BILZ-CN) announced plans to go private. The company said the proposed transaction will be completed by consolidating its outstanding subordinate voting shares on the basis of one post-consolidated subordinate voting share for each 100,000 pre-consolidated subordinate voting shares.
The consolidation is subject to shareholder approval at the company’s AGM on Aug. 24. If approved, all fractional shares resulting from the consolidation will be cancelled and holders will receive a cash payment of 62 cents for each cancelled share. The company said the price is a 26-per-cent premium to its closing price of 49 cents on July 18.
**
Good natured Products Inc. (GDNP-X) announced preliminary revenue for the second quarter ending June 30 is expected to come in at $24-million to $26-million, an increase of approximately 95 to 110 per cent, compared to $12.4-million a year ago. The expectation is for revenue of $25.7-million in the latest quarter, according to S&P Capital IQ.
“The growth in revenue in [in the second quarter of this year] was driven by strong organic growth with new customer additions, including a national U.S. food producer announced in October 2021, increases in average selling price per unit and contribution from the Ex-Tech Plastics acquisition completed in May 2021,” the company stated.
It plans to release full results next month.
**
High Tide Inc. (HITI-X) announced a $10-million bought deal public offering. The company said it has an agreement with a syndicate of underwriters led by Echelon Wealth Partners Inc. to purchase 4,310,400 units for $2.32 each. Each unit includes one common share and one common share purchase warrant exercisable for 60 months at a price of $2.73 each.
The company said the financing is a proactive move after due diligence following a letter of intent with Connect First Credit Union Ltd. for non-dilutive credit facilities is taking “much longer than previously anticipated.”
“Despite the recent deteriorating and uncertain macro environment, our operations remain very strong,” stated CEO Raj Grover in a release, adding that its news “will ensure that we can continue our trajectory and take advantage of the attractive opportunities that present themselves in the market.”
The company said the net proceeds of the offering will be used for constructing and opening new retail cannabis store locations, the repayment of debt and for general corporate and working capital purposes.
**
Clairvest Group Inc. (CVG-T) announced a recapitalization with its portfolio company Meriplex Communications, Ltd. It said the transaction involves the acquisition of a majority interest in Meriplex by Vitruvian Partners and “a meaningful equity reinvestment by Meriplex shareholders who will participate in the next chapter of growth.”
At closing, Clairvest said its portion of the cash proceeds are approximately US$160-million. Clairvest will continue to own approximately 18 per cent of Meriplex after the transaction.
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.