Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
DHX Media (DHX-T; DHXM-Q) has suspended its dividend and says its board has concluded its strategic review, which led to a multi-million-dollar agency agreement for Peanuts in China and Asia with CAA Global Brand Management Group LLP, a division of Global Brands Group. It follows teh previously announced sale of a minority stake in Peanuts to Sony for $235.6-million.
"The company also announces that it has refocused its content strategy to prioritize investment in WildBrain, and the development of premium content for major streaming services and broadcasters," it stated.
It said the dividend suspension, effective immediately, will free up approximately $10-million in annual funds, "to invest in our rapidly growing WildBrain business and to continue paying down debt."
It also reported fourth-quarter revenue of $97.4-million up from $87.6-million a year earlier and below expectations of $106.1-million. Its net loss was $6.8-million (or $21.6-million attributable to shareholders) versus a loss of $18.3-million a year ago.
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Pollard Banknote Limited (PBL-T) announced a six-year extension to its instant ticket printing and production services contract with the Texas Lottery. “Under this agreement, Pollard Banknote will continue to provide the lottery with instant ticket printing and related services through to August 31, 2024,” the company stated in a release. The estimated dollar value over the term of the extension is $70-million to $80-million, the company stated.
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Knight Therapeutics Inc. (GUD-T) says it has entered a distribution, license and supply agreement with Jaguar Health, Inc. (JAGX-Q). The agreement grants Knight the exclusive right to commercialize the Mytesi drug and related products in Canada and Israel “and a right of first negotiation to commercialize Mytesi and related products in specified Latin American countries,” the company stated.
“We are pleased to enter into this strategic transaction with Jaguar for Mytesi," said Jonathan Ross Goodman, CEO of Knight. "Mytesi will strengthen Knight’s portfolio of GI products and will be an important treatment option for Canadian and Israeli patients, if Mytesi is approved in these markets. We are excited to support Jaguar as they seek to develop Mytesi for follow-on indications such as cancer therapy-related diarrhea."
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Transat A.T. Inc. (TRZ-T) says it has purchased land, and has entered into a promissory agreement to purchase a second adjacent property, in Puerto Morelos on Mexico’s Yucatán Peninsula for a total consideration of between US$54-million and US$57-million million to build a beachfront resort.
"We are very pleased with these transactions in a prominent Mexican tourism market," said Transat CEO Jean-Marc Eustache. "This is just the beginning: we are continuing our exploratory work with the objective of finding attractive land or hotels that we can acquire or manage. Our company's future growth will be built on hotel development and, obviously, the strength of our leisure travel business."
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Aleafia Health Inc. (ALEF-X) says it has a letter of intent to acquire a 51-per-cent stake in One Plant, an adult-use cannabis retail operation led by members of the Serruya Family. Under the terms of the LOI, Aleafia and Serruya Family will establish a new corporation for the joint venture that will be owned 51-per-cent by Aleafia and 49 per cent by Serruya Family.
"The JV marks the first phase of a multiphase strategy that will see Aleafia enter the adult use cannabis industry and related retail operations in Canada, joining Aleafia’s two existing business pillars; cannabis cultivation and medical clinic operations," the company stated. "Pending standard due diligence to be completed within 14 days, the execution of definitive agreements and regulatory approvals, the acquisition provides Aleafia the tools to become one of the largest national adult-use cannabis retailers."
Aleafia says it will also contribute to the JV $5-million in cash and cannabis product "on industry standard wholesale pricing, among other contributions."
Aleafia also said the The Serruya Family will complete a strategic investment through a non-brokered private placement of $10-million in Aleafia common shares at a price of $3.10 per share.