Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Callidus Capital Corp. (CBL-T) announced an advance ruling certificate under section 102 of the Competition Act has been issued in connection with its previously announced sale of the commodity division of C&C Resources Inc. for about $100-million in cash. “Callidus will realize the vast majority of the current carrying value for all of the assets of C&C, which it acquired in 2017 and will retain ownership of C&C’s growth-oriented, value-added operations, including its Quesnel, B.C., sawmill, processing facilities and associated logging operations, as well as a plant in Cranbrook, B.C.,” the company stated.
"The issuance of an advance ruling certificate under the Competition Act was the principal outstanding condition precedent to closing," stated David Reese, president of Callidus. "C&C's remaining assets represent additional value which we will also be seeking to monetize post closing."
Westport Fuel Systems Inc. (WPRT-T; WPRT-Q) announced the appointment of David Johnson as CEO, effective immediately. The company said Nancy Gougarty has decided to retire as Westport’s CEO and is stepping down from the board. She will support the company’s leadership team through a transition period, the company stated.
Mr. Johnson served for 10 years as president and CEO of Achates Power and previously served in a variety of roles with various automotive companies including senior roles at Navistar, Ford and General Motors, the company said.
Alcanna Inc. (CLIQ-T) said its subsidiaries and Ace Liquor Corp. have completed a series of transactions “to form and vend stores” into the Canadian Liquor Retailers Alliance Limited Partnership, which was outlined in November.
Liquor Stores Limited Partnership (LSLP), a wholly owned subsidiary of Alcanna, and discount liquor store operator Ace are the only limited partners of the Alliance with 71 per cent and 29 per cent ownership, respectively. The Alliance’s general partner is wholly owned by Alcanna, the company stated.
LSLP entered into a series of agreements to transfer 50 stores to the Alliance effective Jan. 1 and on Jan. 14, "similar transactions occurred transferring substantially all of Ace’s assets, including 12 opened, and 3 unopened stores from Ace to the Alliance and one unopened store from Ace to LSLP," the company stated, adding that, "the Alliance has entered into a services agreement with Alcanna for various corporate and business support functions."
The company also announced corporate structure changes "to streamline and simplify its corporate structure which includes various corporate entities and partnerships resulting from previous acquisitions."
Brent crude has fallen by more than 30 per cent since reaching a four-year high of $86.74 per barrel in October last year, partly due to concerns over slowing global demand for the fossil fuel.
The company sees 2019 capital expenditure in the range of $1.2-billion to $1.3-billion.
Its budget forecast for 2018 was $1.78-billion. But it would be $35-million below the original forecast, the company said on Tuesday.
The Calgary-based company expects 2019 production to fall as it sold some of its assets in 2018.
Crescent Point expects its output to be in the range of 170,000 to 174,000 barrels of oil equivalent per day (boe/d) in 2019, well under last year’s forecast of 177,000 boe/d.
The company said it will now pay a quarterly dividend of 1 cent per share, down from 3 cents.
Emerald Health Therapeutics, Inc. (EMH-X) announced it has entered into a share purchase agreement with a single Canadian institutional accredited investor in connection with a secondary offering of common shares of the company. The unnamed investor will purchase 2.8 million common shares from the Selling Shareholder at a price of $2.50 each.
Wayland Group (WAYL-CN) announced it has a letter of intent to sell 49.9 per cent of the company’s international portfolio of assets to International Cannabis Corp. (WRLD.U-T). Wayland said it will receive 300 million shares of ICC at US$0.43 per share. Wayland said the deal values its international business at approximately US$258-million.
“The proposed transaction would provide Wayland and our shareholders with exposure to an unparalleled portfolio of international assets to address the ever-expanding global legalization of medical cannabis with operations in countries with a total population of just over 390 million people and access to international markets that exceed a billion people," stated Wayland CEO Ben Ward.
ICC CEO Eugene Beukman called it a “watershed acquisition” for his company, “adding cannabis operations in a variety of high profile jurisdictions, all while increasing exposure to high growth marketplaces including Germany and the Asia Pacific theatre. This acquisition will solidify ICC as a global Cannabis leader, with exposure to a broader range of countries than any competitor to date.”
Firm Capital Property Trust (FCD.UN-X) announced the acquisition of a 50-per-cent interest in seven retail properties located in Alberta, Nova Scotia, Saskatchewan, Ontario and Quebec with Crombie Real Estate Investment Trust (CRR.UN-T).
The acquisition price for 100-per-cent of the portfolio is approximately $83.2-million, the company said, excluding transaction costs. Each trust’s portion of the acquisition price is approximately $41.6 million.
Goodfood Market Corp. (FOOD-T) reported first-quarter revenue more than doubled to $29.6-million, which was in line with expectations and compared to $11.2 -million for the same period last year. The company said its active subscribers reached 126,000 as at Nov. 30, up from 45,000 as at November 30, 2017.
Net loss was $4.9-million or 9 cents per share compared to a net loss of $2.5-million or 5 per share for the same period last year. Analysts were expecting a loss of 7 cent in the most recent quarter. “The increase in net loss was mainly due to an increased marketing budget and higher wage costs due to the addition of administrative personnel to support the company’s growth, partially offset by higher gross profit,” the company stated.
MORE TO COME