Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
The Catalyst Capital Group Inc. announced an offer to buy Hudson’s Bay Company (HBC-T) for $11 per share. The bid from Catalyst, which says it has control of shares representing approximately 17.5 per cent of the company, is above the $10.30-per-share bid from HBC executive chairman Richard Baker to take the company private.
Catalyst, which says it's HBC's third-largest individual holder and the largest minority holder of equity securities of HBC, says it's "deeply concerned with the financial terms and structure of the company-sponsored share buyback," calling it "inadequate" and saying it "undervalues the company on multiple metrics." It also said the other bid also has "substantial negative tax consequences to a significant number of shareholders."
Catalyst says its offer is "a superior, independently financed, all-cash transaction that can be completed in a timely manner, subject to a short period to complete customary due diligence." Catalyst also said it's prepared to consider making a higher offer "based on the results of its due diligence and the cooperation of the special committee and is also prepared to allow other shareholders to be co-equity sponsors to join its offer."
The review is because as a result of the company being "in arrears for satisfying certain disclosure requirements," the company said, including the preparation and filing of its restated audited financial statements for the year ended December 31, 2018 and the first three quarters of 2019.
If the company is "unable to cure those defaults" by March 25, 2020, the stock will be delisted within 30 days, it said. CannTrust said it expects to file the required documents by the deadline.
The Flowr Corp. (FLWR-X) reported third-quarter revenue of $1.3-million versus nil for the same quarter last year. Its net loss was $15-million or 13 cents per share versus a loss of $5.6-million or 8 cents a year ago.
Flower One Holdings Inc. (FONE-C) reported third-quarter revenue of US$2.5-million versus nil a year ago and ahead of expectations of US$2.1-million. The company began recording revenue on Nov. 9, 2018. Net income was US$15.7-million or 5 cents US per share versus a loss of US$5.6-million or 4 cents US a year ago.
MedMen Enterprises Inc. (MMEN-C) reported revenue of US$44-million for the first quarter ended Sept. 28 versus US$21.5-million for the same quarter last year. Analysts were expecting revenue of US$46.7-million.
Its net loss was US$82.6-million versus a loss of $66.5-million a year ago.
CannaRoyalty Corp., doing business as Origin House (OH-C) reported revenues of $22.8-million as compared to $6.6-million a year earlier.
Its net loss of $25.6-million or 34 cents per share compared to a net loss of $7.5-million or 12 cents a year ago.
“When we acquired Coveris Americas, we welcomed all of their assets and broad portfolio of products,” said François Olivier, CEO of TC Transcontinental. “After operating the paper business for almost 18 months, we concluded that it is less core to our Packaging Sector’s growth strategy. As such, our decision to sell these assets is aligned with our plan to continue building our flexible packaging platform where we see good growth potential. In addition, this transaction will enable us to deleverage our balance sheet faster than expected and give us the flexibility to continue acquiring businesses that are more complementary to our existing flexible packaging portfolio.”