Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Aurora Cannabis Inc. (ACB-T) is buying small-cap cannabis company ICC Labs Inc. (ICC-X) for $1.95 per share, valuing the company at about $290-million. The stock closed at $1.79 on Friday. The transaction has been unanimously approved by the board of directors of each ICC and Aurora, the companies stated.
"ICC will establish Aurora as the industry leader in South America," the release states, adding that ICC has a more than 70 -per-cent market share in Uruguay, the first country in the world to legalize cannabis for adult consumer use. ICC also holds licenses in Colombia for the production of medical cannabis.
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Golden Leaf Holdings Ltd. (GLH-CN) is planning to raise up to $15-million in unsecured convertible subordinated debenture units. It has an agreement with Canaccord Genuity Corp. as sole agent and bookrunner for the "best efforts" private placement.
It said the net proceeds will be used for working capital and general corporate purposes.
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CannTrust Holdings Inc. (TRST-T) and Breakthru Beverage Group, a Canadian beverage alcohol broker, announced an exclusive partnership to represent CannTrust's specialty products to Canadian adult consumers for recreational use.
"Breakthru will invest in the establishment of a cannabis-focused sales brokerage company and develop a route-to-market platform for CannTrust in Canada, effective when the adult-use recreational market opens October 17, 2018," the companies stated. "In addition, Breakthru is aligning as a strategic partner with CannTrust through a company investment, as it sees the organization as a long-term market share leader."
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The Supreme Cannabis Company, Inc. (FIRE-X) says its 7ACRES subsidiary has struck a supply agreement to provide dried cannabis to Tilray Canada Ltd., a subsidiary of Tilray Inc. (TLRY-Q).
"The value of this initial supply agreement is estimated to be in excess of C$2 million," the company stated.
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Liberty Health Sciences Inc. (LHS-CN) says it has become the first brand partner for the PAX Era, a temperature controlled portable cannabis oil vaporizer, in the Florida market.
"The opportunity, as the first brand partner to sell the PAX Era system in Florida reinforces our leadership position in the industry with a strong commitment to new product offerings and innovation," said George Scorsis, CEO of Liberty Health Services.
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Emerald Health Therapeutics, Inc. (EMH-T) says its has been selected as an authorized cannabis supplier by the Newfoundland Labrador Liquor Corp and serve the adult-use market throughout the province of Newfoundland Labrador starting Oct. 17.
Emerald said it's the third provincial agreement for the company, including B.C. and Ontario, and it expects to share additional supply updates in the future.
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Just Energy Group Inc. (JE-T; JE-N) says it plans to acquire Filter Group Inc., a provider of subscription-based, home water filtration systems to residential customers in Canada and the United States, for $15 million in cash and including the assumption of approximately $22-million of Filter Group debt. The deal also includes future performance based earn-out payments.
“Over the past 18 months, Just Energy has been surveying its customers to better understand the products and services that they value," stated CEO Patrick McCullough. "At the top of the list were products that provide health, well-being and comfort, including water filters. We have listened to our customers and the acquisition of Filter Group is a significant step by Just Energy in its transformation to a value-added consumer products company.”
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Aleafia Health Inc. (ALEF-X) says its has secured its first sale of medical cannabis to CannTrust Holdings Inc. (TRST-T) after recently receiving its sales licence from Health Canada. Aleafia said it recorded record revenue primarily from clinic operations reported in its second-quarter earnings, and will reach a fully funded growing capacity of 38,000 kg of cannabis flower in early 2019.
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Emblem Corp. (EMC-X) says it plans to purchase approximately $1-million of units of 10330698 Canada Ltd. d/b/a Compass Cannabis Clinic at a price of 60 cents per unit. Each unit will consist of one common share in the capital of Compass and one-half of one common share purchase warrant. Each whole warrant entitling the holder purchase one additional compass Share at a price of 75 cents per share for 24 months.
“Compass has a highly regarded reputation as a leading provider of cannabis education and patient-centred care. Emblem is committed to supporting Compass’ continued mission to provide the best in patient care now, and upon legalization with a new consumer audience after October 17, 2018.” said Nick Dean, CEO, Emblem Corp.
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Iron Bridge Resources Inc. (IBR-T) says it has an agreement to be taken over by Velvet Energy Ltd. The company said Velvet has agreed to amend its offer to 84.5 cents per share in cash.
“Since Velvet made its initial offer, our board has remained steadfast in its commitment to pursue all options to maximize value for all Iron Bridge shareholders,” said Rob Colcleugh, Iron Bridge’s CEO. “We are comfortable that this agreement fulfills that commitment, providing our shareholders with a higher cash price for their shares, despite a challenging environment for Canadian oil and gas companies."
The company said the agreement has the support of all Iron Bridge directors and officers as well as major shareholders, including Maple Rock Capital Partners and Bison Interests LLC, "who have all agreed to tender their shares in response to the amended offer. We recommend all shareholders also tender their shares to Velvet’s materially improved offer.”