Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
SIR Royalty Income Fund (SRV.UN-T) is hiking its cash distributions by 5.3 per cent, raising the fund’s monthly unitholder distributions from 9.5 cents per unit to 10 cents, or $1.20 per unit annually. The increase will be effective for the fund’s monthly cash distribution to be paid in April.
“This increase to unitholder distributions is supported by the strong performance of our restaurant brands and reflects our consistent focus on investing in new and existing restaurants to drive growth in royalty pooled revenue and same-store sales,” said Peter Fowler, CEO of SIR Corp.
Its net loss attributable to the parent interest was US$4.7-million, or 8 cents per share versus US$1-million, or 2 cents a year earlier. Analysts were expecting earnings of 2 cents in the most recent quarter.
Seabridge Gold Inc. (SEA-T; SA-N) says it’s raising $17.2-million in a non-brokered private placement of one million flow-through common shares for $17.16 each. It said the proceeds from the financing will be used to fund a 2018 exploration program at its KSM project in B.C.
Calian Group Ltd. (CGY-T) says it has been awarded new IT and cybersecurity service agreements with Shared Services Canada, Canada Revenue Agency and Public Services and Procurement Canada, valued at a total of $11-million.
Madalena Energy Inc. (MVN-X) reported fourth-quarter oil and gas revenue of $8.6-million down from $10.5-million a year earlier. Its net loss from continuing operations was $19.4-million or 3 cents per share versus a loss of $9.4-million or 2 cents a year earlier.
Emblem Corp. (EMC-X) says its has entered into a supplier agreement that sees its subsidiary Emblem Cannabis Corp. become a preferred cannabis supplier to Fire & Flower Inc.
Nick Dean, CEO of Emblem, says the deal presents “an incredible opportunity for Emblem to get their adult-use brands into the hands of consumers across Canada,” the company stated. “As Fire & Flower is building a leading retail concept in the cannabis space, we anticipate that this arrangement will assist us in our single-minded focus on driving shareholder value,” Mr. Dean stated in a release.
Akumin Inc. (AKU-U-T) says it’s raising US$35-million in a bought-deal financing. It has an agreement with Clarus Securities Inc., on behalf of a syndicate of underwriters, to buy about 8.75 million shares for US$4 each.
The company intends to use the net proceeds to finance the cash consideration portion of a previously disclosed acquisition, to support growth initiatives and for general corporate purposes.
The Hydropothecary Corp. (THCX-X) says it has entered into a commercial agreement with the Société des alcools du Québec (SAQ) to be the preferred supplier of cannabis products for the Quebec market for the first five years post-legalization, with an option to extend the term for an additional year.
The supply arrangement covers the full range of the company’s products and brands, from flowers to cannabis oil, the company said.
“Hydropothecary was the only company to announce a five-year supply agreement,” stated Beacon Securities analyst Vahan Ajamian in a note on Wednesday, adding that all other cannabis companies announced three-year deals. “Hydropothecary was the only one to announce built-in escalators in volumes.”
Some of the other cannabis companies that announced deals with the SAQ on Wednesday included Aurora Cannabis Inc (ACB-T), MedReleaf Corp. (LEAF-T), Aphria Inc. (APH-T) and Canopy Growth Corp. (WEED-T).
5N Plus Inc. (VNP-T) announced the expansion of capacity and capability in its upstream activities across South East Asia and Europe “to further enhance the company’s competitive access to specialty metals.”
5N said the expansion will increase its capacity for production of specialty metals by more than 2,000 metric tons per year. “The enhanced capabilities will provide more flexibility and better yields in extracting the essential metals from more diverse secondary streams while extending the company’s reach into the recovery of precious metals,” it stated. The construction and commissioning phase of the investment is expected to take a year to complete.