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

Canfor Corp. (CFP-T) announced it will be closing its Vavenby sawmill in British Columbia in July “following an orderly wind down.” Canfor said it has reached an agreement to sell the forest tenure associated with the Vavenby sawmill to Interfor Corp. (IFP-T) for $60-million.

"Due to the current and long-term log supply constraints we face in the Vavenby region, along with the high cost of fibre, we have made the very difficult decision to permanently close the sawmill and sell the associated forest tenure to Interfor. The ongoing depressed lumber markets have expedited this decision," said Don Kayne, CEO, Canfor. "The B.C. forest industry has recognized for several years that sawmill capacity must be reduced as the annual allowable cut decreases following the end of the Mountain Pine Beetle epidemic,

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The Vavenby sawmill has an annual production capacity of approximately 250 million board feet.

“While business conditions in the Interior are currently challenging, we’re in the business for the long-term and believe the capacity rationalization now underway will help reset the equation going forward”, said Duncan Davies, Interfor’s CEO, in a separate release. “This transaction materially enhances Adams Lake’s log supply and sets the stage for its future success in much the same way the investments made ten years ago set the stage for its success over the last decade.”

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Capstone Mining Corp. (CS-T) announced plans to sell the Minto mine to Pembridge Resources PLC. Under the terms of the agreement, Capstone stated that it will receive up to US$20-million in cash in staged payments. “The sale of the Minto mine is very good news all around. Capstone will no longer incur the expense of having the mine on care and maintenance, and the recommencement of operations will be positive for Minto employees, contractors and the local economy,” said Darren Pylot, CEO of Capstone. “Completing Minto’s divestiture allows Capstone’s management to focus on our core operations, which includes completing the strategic process for Santo Domingo.”

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Summit Industrial Income REIT (SMU.UN-T) announced a $130-million bought-deal financing. It has an agreement with a syndicate of underwriters to sell 10,400,000 units at a price of $12.50 each. The REIT stated that it intends to use the net proceeds “to repay existing indebtedness, to fund future acquisitions and for general trust purposes.”

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Slate Office REIT (SOT.UN-T) announced an agreement to sell 895 Waverley Street and 1000 Waverley Street in Winnipeg, Manitoba for a combined sale price of $21.3-million. The REIT stated that is expects to use the net proceeds "to reduce outstanding debt and to fund continued unit repurchases.”

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Reitmans (Canada) Limited (RET.A-T) reported sales for the first quarter of 2020, or the 13 weeks ended May 4, 2019, were $185.2-million, as compared with $207.6-million for the 13 weeks ended May 5, 2018. “The decrease of $22.4-million is primarily attributable to a net reduction of 43 stores and unseasonable weather conditions that were prevalent during the first quarter of 2020,” the company stated.

The net loss for the first quarter of 2020 was $12.6-million or 20 cents per share as compared with a net loss of $3.2-million or 5 cents for the year-earlier period. Adjusted EBITDA was $13.5-million, as compared with $6.9-million a year earlier.

The company said sales for the four weeks ended June 1, 2019 decreased 13.3 per cent. Comparable sales decreased 9.6 per cent, “primarily due to store traffic being down 7.9 per cent as unseasonable weather conditions continued to be prevalent during the month of May.”

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Green Growth Brands, Inc. (GGB-C) announced it will acquire Spring Oaks Greenhouses, Inc., which holds a medical marijuana dispensary license and authorization to operate as a Medical Marijuana Treatment Center in the state of Florida, for about US$54.7-million.

"Entering Florida through the Spring Oaks acquisition will be a great addition to our existing MSO presence in Nevada and Massachusetts, as well as to our CBD business that already has a national presence," said Green Growth Brands CEO, Peter Horvath. "We admire several of the existing operators in the state and Florida is a special market, with favorable financials implications for the best operators. We look forward to quickly scaling our operations in the state and bringing our expertise to every patient."

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Drone Delivery Canada Corp. (FLT-X) announced an agreement with Air Canada (AC-T) that sees Air Canada Cargo market and sell DDC’s drone delivery services in Canada.

Subject to DDC obtaining required regulatory approvals, DDC said it will build and operate up to 150,000 drone delivery routes in Canada. "These routes will include timetables, flight schedules, payload capacities, type of drones to be deployed, and payment terms," the company stated. "DDC’s services will be marketed as a premium offering, and Air Canada Cargo has agreed that it shall not use or engage with any other drone delivery service providers."

“This agreement greatly accelerates our commercial roll out in Canada,” stated Tony Di Benedetto CEO of DDC. “DDC will benefit from Air Canada’s Cargo’s expertise and ability to promote and sell DDC services through Air Canada Cargo’s industry leading marketing and sales technology channels in Canada, which will support our efforts to establish DDC as Canada’s first national drone cargo solution. Next, DDC hopes to pursue even larger markets in the United States and Europe.”

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DDC stock has been halted since May 29, at the request of the company, “pending news.”

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Stuart Olson Inc. (SOX-T) announced that it has been awarded approximately $100-million in new contracts. “These new contract awards are important wins for each of our operating groups,” said David LeMay, Stuart Olson’s CEO. “They highlight our success in sector and geographic diversification, underscore our expertise as a proven leader in the construction management delivery model and emphasize our ability to execute as an integrated industrial contractor.”

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