Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
CannTrust Holdings Inc. (TRST-T) has fired chief executive officer Peter Aceto “with cause” and forced the resignation of chairman Eric Paul amid a deepening scandal over cannabis plants being grown in unlicensed rooms.
The special committee of the board investigating the breaches at the Canadian cannabis grower said the high-profile departures stem from new information, but did not give details.
“The investigation into the company’s non-compliance with Health Canada regulations and ancillary matters uncovered new information that has resulted in a determination by the board to terminate with cause CannTrust CEO Peter Aceto,” the company said in a statement on Thursday.
The move to relieve the top executives of their duties followed a report by The Globe and Mail this week detailing internal e-mails that showed that the pair and other CannTrust officials were made aware of breaches of Health Canada regulations at a Southern Ontario growing facility in November, 2018, seven months before the regulator uncovered the illegal practice.
-Jeffrey Jones and Mark Rendell
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Canfor Corp. (CFP-T) reported second-quarter revenue of $1.3-million down from $1.5-million a year ago. Its net loss was $48.6-million or 39 cents per share versus net income of $169.8-million or $1.32 per share a year ago.
Its adjusted loss was $11.8-million or 10 cents per share versus a profit of $214.1-million or $1.66 per share. Analysts were expecting revenue of $1.4-million and a loss of 38 cents.
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Canfor Pulp Products Inc. (CFX-T) reported second-quarter sales of $319.5-million versus $396.4-million a year ago. Net income was $10.6-million or 16 cents per share versus net income of $63-million or 97 cents a year ago. Analysts were expecting earnings of 24 cents per share.
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Aecon Group Inc. (ARE-T) beat expectations for the quarter ended June 30. The company reported second-quarter revenue of $867-million, a 15-per-cent increase from a year earlier. Profit was $20.4-million or 31 cents per share versus a profit of $8.4-million or 13 cents a year ago. Analysts were expecting a profit of 23 cents and revenue to come in at $770-million.
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Theratechnologies Inc. (TH-T) announced that the Committee for Medicinal Products for Human use (CHMP) in Europe has given a positive recommendation for the approval of its product Trogarzo (ibalizumab) for the treatment of multidrug-resistant HIV-1.
“This is a major step in the regulatory process for the European approval of Trogarzo® and for the global development of our company, as Europe represents a significant mid-term growth opportunity,” said Luc Tanguay, CEO.
The company said the positive opinion will now be taken into consideration by the European Commission (EC) which will issue a final decision in the near future.
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CannaRoyalty Corp., which does business as Origin House (OH-C), announced that it has divested its 5.1-per-cent equity interest in Alternative Medical Enterprises LLC for US$6-million. “As Cresco Labs Inc. is prohibited under state law from acquiring additional positions in the Florida market, this divestment was a pre-closing condition to the company’s previously announced plan of arrangement pursuant to which Cresco has agreed to acquire all of the issued and outstanding shares of Origin House,” the company stated.
“With one of the final conditions to closing the Arrangement with Cresco now complete, we look forward to proceeding to drive value for shareholders as a combined company, upon the expiration of the anti-trust waiting period,” stated Marc Lustig, CEO of Origin House. “The sale of the remaining AltMed interest marks a significant milestone in the continued process whereby Origin House has monetized non-core holdings resulting in both substantial returns for shareholders and additional cash that has fueled the Company’s growth.”