Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Cresco Labs Inc. (CL-CN) announced the acquisition of Columbia Care Inc. (CCHW-CN) for about US$2-billion. Cresco said the combination will create the largest cannabis company by revenue and the No. 1 wholesaler of branded cannabis products.
Under the terms of the agreement, shareholders of Columbia Care will receive 0.5579 of a subordinate voting share of Cresco Labs for each Columbia Care common share, the company stated.
“This acquisition brings together two of the leading operators in the industry, pairing a leading footprint with proven operational, brand and competitive excellence,” Charles Bachtell, CEO of Cresco Labs, stated in a release. “The combination of Cresco Labs and Columbia Care accelerates our journey to become the leader in cannabis in a way no other potential transaction could.”
The company also reported record fourth-quarter revenue of US$218-million, up 34 per cent year-over-year. The expectation was for revenue of US$234.5-million, according to S&P Capital IQ.
Its net loss was US$11.9-million versus a loss of US$41.2-million a year earlier.
Mogo Inc. (MOGO-T) reported that its fourth-quarter revenue increased 70 over the comparable quarter in 2020 to a record $17-million. The results beat expectations of $16-million, according to S&P Capital IQ.
Its net loss of $29.6-million compared with a net loss of $2.8- million a year earlier. Its adjusted net loss of $9.7 million compared with a loss of $3.2 million a year earlier.
Mogo also announced a share repurchase program of up to US$10-million of common shares.
“While our primary focus is to invest in our platform and new products, the market volatility may continue to present attractive buying conditions periodically. Our strong balance sheet puts us in a position to take advantage of those situations on behalf of our shareholders,” stated president Greg Feller in a release.
The company also announced the formation of Mogo Ventures to manage its existing investments in strategic partners and companies that support Mogo’s ecosystem. These include a 39-per-cent stake in crypto exchange Coinsquare and gaming companies such as Enthusiast Gaming Holdings Inc..
NFI Group Inc. (NFI-T) said its subsidiary Alexander Dennis Limited (ADL) announced it will build an initial 10 electric double-deck buses for leading Hong Kong operator The Kowloon Motor Bus Company (1933) Limited.
“The zero-emission Enviro500EV will be ADL’s first electric double-deck buses in the Asia-Pacific region and will continue a long tradition of innovation for the Hong Kong bus market,” the company stated.
Dialogue Health Technologies Inc. (CARE-T), a virtual health care platform, reported fourth-quarter revenue increased by 40.6 per cent year-over-year to $18.9-million, which was in line with expectations.
Its net loss was $7.1-million, as compared to $6.6-million in the same period last year, which the company said was due mainly to higher operating expenses, partially offset by higher gross profit.
Net income of $2.3-milion or 27 cents per share compared to net income of $582,000 or 5 cents a year earlier.
Automotive Properties Real Estate Investment Trust (APR-UN-T) reported fourth-quarter rental revenue of $19.8-million, up from $19.1-million a year earlier and roughly in line with expectations of $19.5-million.
Net operating income of $16.8-million compared to $16.5-million a year earlier. Net income of $10.4-million compared to $30.2-million a year earlier.
Adjusted funds flow from operations of $10.9-million or 22 cents per unit was in line with expectations and compared to $10.3-million or 21 cents a year earlier.
In its outlook, the REIT said it believes supply chain constraints will continue into the foreseeable future but will not have a significant impact on its tenants’ ability to pay rent.
The REIT also said it expects continued consolidation over the mid-to-long-term “due to increased industry sophistication and growing capital requirements for owner-operators, which encourages them to pursue increased economies of scale” and said it has a strong balance sheet and intends to pursue acquisitions “on a strategic basis through debt financing and available liquidity.”
Aurora Cannabis Inc. (ACB-T) announced an agreement to acquire TerraFarma Inc., the parent company of Thrive Cannabis, for $38-million in cash common shares. It said the deal also includes two earnout amounts based on Thrive achieving certain revenue targets within two years of the deal closing.
“The transaction is expected to strategically strengthen Aurora’s position in the Canadian market by placing the Thrive team in charge of Aurora’s Canadian recreational portfolio, advancing the shift in focus to innovative premium products including dried flower, pre-rolls, vapour products, and concentrates,” the company stated.
Its net loss was US$10.9-million compared to US$3.2-million a year earlier. The company said its adjusted EBITDA loss was US$5.5- million compared to US$2-million in the corresponding period in 2020.
Net income of $7.1-million compared to net income of $950,000 a year earlier. Adjusted net income of $25.5-million or 12 cents per share compared to adjusted net income of $15.2-million or 11 cents a year earlier. The expectation was for adjusted EPS of 7 cents per share in the latest quarter.
Adjusted EBITDA of $34.7-million was up from $23.4-million the year before.
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