Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Hive Blockchain Technologies Ltd. (HIVE-X) announced late Friday that it was unable to file its year-end financial statements and accompanying documents due under applicable Canadian securities law requirements, citing delays in the completion of its audit. “The late filing is the result of delays in obtaining financial reporting from the company’s wholly-owned subsidiaries as the company has explored potential tax optimization structures, and the time required for the company and its auditors to review such financial reporting,” it stated.
The company has applied for a management cease-trade order restricting its chief executive officer and chief financial officer from trading the company's shares until the annual filings are filed. The company stated that it expects to file the annual filings on or before Aug. 28.
Separately, the company announced on Monday that it has reached 99-per-cent utilization of capacity in Sweden since rebooting operations on July 11 and that its performance has increased to 96-per-cent efficiency "with further optimization expected."
In the second release, the company's interim CEO Frank Holmes also said that delayed filings have impacted, "to my knowledge, every Canadian listed company involved in the cryptocurrency and blockchain industry." It cited an article published by the Globe and Mail earlier this year that it states highlighted "the challenges faced by our peers that we are currently undergoing. We are making great progress within the business and I look forward to sharing our financial results as we work expeditiously to complete our annual filings."
Well Health Technologies Corp. (WELL-X) announced an increase to its recently announced bought deal private placement of special warrants to $13-million from $12-million with an option for it to increase to $15-million. It said the offering is also expected to include subscriptions of $500,000 from Li Ka-shing and $380,000 from the management of the company.
Aphria Inc. (APHA-T; APHA-N) announced that its subsidiary Marigold Projects Jamaica Limited has received a retail Herb House licence from Jamaica’s Cannabis Licensing Authority to open its first store in Kingston, Jamaica.
"The approval of Marigold's first Herb House signals an exciting time for Aphria. We believe that there is tremendous opportunity in Jamaica from a domestic and international perspective and we look forward to bringing Sensi products to the market," stated Aphria's interim CEO Irwin Simon.
Marigold Projects, a 49-per-cent owned subsidiary of Aphria, holds a Tier 3 licence to cultivate more than five- acres of land with cannabis for medical, scientific and therapeutic purposes.
Charlotte’s Web Holdings, Inc. (CWEB-T) announced that The Kroger Co., which it described as America’s largest grocery retailer, has begun carrying Charlotte’s Web products in multiple states with a plan to roll out to a total of 1,350 store locations in 22 states. “The announcement with Kroger marks a milestone for Charlotte’s Web as the largest distribution ever through a single retailer,” Charlotte’s Web stated.
Diamond Estates Wines & Spirits Inc. (DWS-X) announced that food and beverage maker Lassonde Industries Inc. (LAS.A-T) has taken a 19.9-per-cent stake in the company. Lassonde purchased 36.9 million Diamond Estates common shares at a price of 19 cents each, for gross proceeds of approximately $7-million. Diamond Estates said it intends to use the net proceeds to support “growth strategies, including the expansion of sales volumes in the emerging Ontario grocery channel and the development of a new winery in British Columbia’sOkanagan Valley.”
Diamond Estates said the issue price represents a premium of 18.8 per cent to the closing price of the company's common shares on July 26. Lassonde and Diamond Estates have also entered into an investor rights agreement that allows Lassonde's right to nominate two of seven directors to a board that will be reconstituted, as well as certain anti-dilution and registration rights and governance matters.
In connection with the private placement, Diamond Estates has also struck a commercial brokerage agreement with Lassonde Beverages Canada, Lassonde’s wholly-owned subsidiary.
Reitmans (Canada) Ltd. (RET.A-T) announced today the preliminary results of its substantial issuer bid to purchase up to 15 million of its outstanding Class A non-voting shares at $3 each. The company said it expects to take up and pay for about 14.5 million shares for about $43.4 million The offer represent approximately 29 per cent of the shares issued and outstanding and now expects that 35.4 million shares will be issued and outstanding.
Colabor Group Inc. (GCL-T) said its sales rose 0.2 per cent to $274.2-million in the second quarter ended June 15, compared to $273.6-million for the same period last year. Net earnings from continuing operations for the quarter was $1.4-million compared to $500,000 last year. “This increase is due to lower operating expenses and higher sales, which were partially offset by higher taxes,” the company stated.
Sol Global Investments Corp. (SOL-C) announced that it now owns about 44.5-per-cent of HeavenlyRx Ltd., a privately-held hemp and cannabidiol (CBD) operating company. Sol Global said it has purchased an additional 16.8 million common shares of HeavenlyRX for 40 cents each for a total of $23.9-million. It said the subscription is part of a larger private offering by HeavenlyRx of Heavenly shares.
“HeavenlyRx, through the expertise of the new management team under Paul Norman and their stream of acquisitions, is quickly becoming a dominant player in CBD wellness. This is a team and strategy we want to be part of in a large way,” stated Andy DeFrancesco, chairman of SOL Global.