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Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.

Aphria Inc. (APH-T) says it has completed the sale of 64 million shares in Liberty Health Sciences, Inc., representing 100 per cent of the company's outstanding investment in Liberty.

"As part of the transaction, Aphria retains an irrevocable option to repurchase the shares or any replacement securities from the buyers for a period of up to five years, subject to the satisfaction of certain conditions," the company stated. " As a result of the transaction, Aphria has divested its remaining U.S. cannabis assets from its balance sheet in accordance with the staff notice and requirements of the Toronto Stock Exchange. As a result of this divestiture, the company has significantly improved its liquidity position while it continues to focus on the many opportunities within Canada and in other legal cannabis markets around the world."

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Surge Energy Inc. (SGY-T) is buying Mount Bastion Oil and Gas Corp. in a deal valued at $320-milllion. MBOG shareholders can take cash or shares or a combination of the two.

"The transaction is consistent with Surge's defined business model of acquiring operated, light and medium gravity crude oil reservoirs, with large OOIP [original oil in place] and low recovery factors," the company stated.

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Liberty Health Sciences Inc. (LHS-CN) said it saw a 95-per-cent increase in sales revenue in the three-month period ended Augl 31 compared to the previous three-month period ended May 31, or up to $2.2-million compared to $1.1-million. "The growth in revenue reflects the wider recognition of the Liberty brands in terms of quality and consistency as well as the patient-centric approach that the company uses," it stated.

It also said its patient count increased to almost 10,000 patients at the end of August from 4,600 at the end of May.

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Village Farms International, Inc. (VFF-T) and Emerald Health Therapeutics, Inc. (EMH-X) announced the fourth amendment to the cultivation license from Health Canada for its Delta 3 greenhouse in Delta, B.C. The latest amendment permits Pure Sunfarms to expand its cannabis production area to 550,000 square feet – half of the 1.1 million square foot Delta 3 production facility. The newly licensed area is expected to be in full production by mid-October of this year.

"It's a remarkable achievement to now have 550,000 square feet – half of the 1.1 million square foot Delta 3 facility – approved for production just six months since receiving the initial cultivation license," said CEO Michael DeGiglio."

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Riposte Capital, LLC, the second largest public shareholder of HEXO Corp. (HEXO-T) —formerly called Hydropothecary Corp — is calling on the company to initiate a review of strategic alternatives.

In a letter to the company and its board, Riposte says it believes the company has "a conservatively calculated current intrinsic value" of $18 per share, based on a sector average multiple of 30 times 2020 EV/EBITDA.

"Yet HEXO trades at an EV/EBITDA multiple of just 8.1x 2020 consensus EBITDA – a mere fraction when compared to Tilray at 93.8x, Canopy 89.2x, Aurora at 27.2x, Cronos at 23.7x and Aphria at 19.5x," the letter states.

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It encourages the company to either engage with any interested buyers of the company at a significant premium to the current share price, merge with another company or take the company private, "now that the financing markets are open to the sector and banks are providing leverage, and doing so in a manner that would permit us to maintain our existing ownership percentage in the company," among other options." Another option is to seek "a meaningful direct investment from Molson Coors to fund growth and further strengthen the company's relationship with a major alcohol player."

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Brick Brewing Co. Limited (BRB-T) reported second-quarter revenue of $16.6 million, up from $15.9-million in the prior-year period. Net income was $1.4-million or 4 cents per share versus net income of $1.1-million or 3 cents a year ago. The expectation was for revenue of $16.3-million and earnings of 3 cents per share.

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Namaste Technologies Inc. (N-X) says it has signed an exclusive co-supply, marketing, and distribution agreement with Airo Brands Inc. to launch Airo Brands' pre-filled vaporizer cartridge brand in both the recreational and medical cannabis markets throughout Canada.

As part of the arrangement, Namaste said will produce and distribute Airo Brand's pre-filled vaporizer cartridges through the company's wholly-owned subsidiary Cannmart Inc.

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True North Commercial Real Estate Investment Trust (TNT.UN-T) agreed to acquire a 40,000-square -foot office property located at 2300 St. Laurent Boulevard in Ottawa for $6.3 million. The price is expected to be satisfied by the proceeds from the REIT's July 2018 public unit offering, and first mortgage financing on the property in the amount of approximately $4.4-million.

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Continental Gold Inc. (CNL-T) announced a security incident in the Town of Buriticá in Colombia where two of its mining engineers were attacked by two armed individuals. "Tragically, Oscar Alarcon was fatally wounded and the other employee was injured and is currently being treated and is in stable condition," the company stated, while offering its condolences and support to the families of the victims.

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Kingsway Financial Services Inc. (KFS-T; KFS-N) says its president and chief operating officer John T "JT" Fitzgerald has been appointed to the role of CEO and president effective Wednesday. Former CEO Larry Swets will transition to a role as senior advisor to the company and will remain on the board of directors.

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Pinnacle Renewable Holdings Inc. (PL-T) plans to acquire a 70-per-cent interest in an operating industrial wood pellet production facility in Aliceville, Alabama from The Westervelt Company. Westervelt will retain a 30 percent interest in the Aliceville Facility.

The Aliceville Facility has an annual production capacity of approximately 270,000 metric tons of industrial wood pellets, the company said.

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WeedMD Inc. (WMD-X) says it has entered into a supply agreement with the Ontario Cannabis Retail Corporation to supply branded cannabis products to the adult-use market in Ontario.

"Under the agreement, the Company will initially supply its cannabis products for online sales via the OCS and will expand to supply Ontario’s private retailers once the province implements an approved framework," the company stated.

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Osisko Gold Royalties Ltd (OR-T; OR-N) says it has entered into a second amended and restated royalty purchase agreement with Barkerville Gold Mines Ltd. that sees it acquire an additional 1.75% net smelter return royalty for $20-million on the Cariboo property in B.C.

Under the terms of the agreement, Barkerville also has the option to grant Osisko an additional 1% NSR royalty on the property for another $13-million until the end of the year.

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Emblem Corp. (EMC-X) says it has entered into a five-year supply and preferred vendor agreement with 10330698 Canada Ltd. d/b/a Compass Cannabis Clinic to become a "preferred cannabis supplier" through its wholly owned subsidiary adult-use retail entity Starbuds Canada, effective Oct. 17.

"Starbuds – licensee of the Starbuds brand name for Canada from Starbuds based out of Denver, Colorado – has an aggressive expansion plan across Ontario, British Columbia, Alberta and Saskatchewan to serve cannabis enthusiasts across Canada," the company stated. "A wholly-owned subsidiary of Compass, Starbuds has received a cannabis retail license or a conditional license in two provinces along with a dozen retail development permits across the province of Alberta."

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