Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
In the takeover bid made public on Tuesday, Green Growth said it would give investors in Aphria 1.5714 shares of the Columbus, Ohio-based company for each Aphria share. Green Growth stock closed Tuesday at $5.98. At that price, the deal would be worth $2.3-billion. Aphria has a market capitalization of $2.35-billion.
Green Growth is formalizing its bid three weeks after it was first announced and nearly two weeks after Aphria’s chief executive and co-founder said they would step down from their executive roles in the coming months. The Leamington, Ont.-based cannabis grower has been facing scrutiny about its deal-making and slumping share price.
With a market capitalization of $1.1-billion, Green Growth is a much smaller company than Aphria. It’s backed by the Schottenstein family, who are Ohio-based billionaires who own significant stakes in American Eagle and DSW Shoes. Green Growth doesn’t have any operations in Canada today but buying Aphria would make the little-known company one of Canada’s largest cannabis firms by sales.
The bid will remain open until May 9.
In late December, Green Growth revealed that it was planning to launch a takeover of Aphria worth $2.8-billion, or $11 a share. However, the figures provided were “based on a valuation of $7 a share" of Green Growth, even though its stock had been trading at $4.98. To bridge the gap, Green Growth said it “expects to complete” a $300-million financing at $7 a share – a transaction that it seemed to believe would boost the stock price, even though few details were provided.
- Christina Pellegrini
AGF Management Limited (AGF.B-T) reported fourth-quarter income of $108.5-million down from $120.9-million a year ago. Income attributable to equity owners of the company was $14.7-million versus $17.3-million a year ago. Adjusted EBITDA was $27.2-million versus $23.1-million a year earlier.
Adjusted diluted earnings per share came in at 17 cents, above expectations of 15 cents and compared to 11 cents a year ago.
Currency Exchange International, Corp. (CXI-T) said transactional activity increased 15 per cent in its fourth quarter ended Oct. 31 to 320,000 transactions from 278,000 for the three-month period ended October 31, 2017;
Revenues increased 10 per cent to US$10.3-million from US$9.4-million a year ago. Net income decreased 24 per cent to US$1-million or 17 cents per share from US$1.3 million or 21 cents a year ago.
Detour Gold Corp. (DGC-T) provided guidance for 2019, which is said was in line with the Detour Lake operation’s life of mine plan released in June 2018. The guidance includes full-year projected gold production of between 570,000 and 605,000 ounces. All-in sustaining costs are expected to range from US$1,175 to US$1,250 per ounce sold, with total cash costs of US$790 to US$840 per ounce sold, the company said. It said capital expenditures are estimated to range between US$190-million and US$210-million. “Higher sustaining capital is anticipated for accelerating the construction of Cell 2 of the tailings facility mainly due to slower progress than planned in 2018,” the company stated.
Platinum Group Metals Ltd. (PTM-T; PLG-N) announced plans to offer and sell up to 3 million common shares at price of US 1.33 each for gross proceeds of up to US$4-million, as part of a private placement. “The majority of the private placement is planned to be subscribed for by an existing major shareholder of the company,” the company stated, adding it intends to use the net proceeds for its share of remaining costs to complete a definitive feasibility study now underway for the Waterberg palladium and platinum project and for general corporate and working capital purposes.
MORE TO COME