Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
MedMen Enterprises Inc. (MMEN-CN), a cannabis retailer with operations across the United States, announced it has won in a lawsuit brought by former chief financial officer James Parker. In a release, the company said Mr. Parker filed suit against MedMen alleging wrongful termination, breach of contract and retaliation, seeking in excess of $20-million in damages.
“MedMen has always maintained that the lawsuit and claims were baseless and without merit. The jury agreed, ruling in favour of MedMen on all claims and determining MedMen does not owe Parker any damages,” the company stated.
“MedMen also asserted affirmative claims against Parker,” the company added in the statement. “The jury found that Parker breached his contract, his fiduciary duty, his duty of loyalty, misappropriated trade secrets, and committed conversion, but that there was no harm/damage resulting from his misconduct.”
Interim CEO Michael Serruya also stated that the “false allegations brought by Mr. Parker have grossly misrepresented the environment at MedMen in 2018, and certainly bear no resemblance to the MedMen before us today.”
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MAG Silver Corp. (MAG-T) announced a US$40-million bought-deal financing. The company said it has an agreement with a syndicate of underwriters led by BMO Capital Markets and Raymond James Ltd. which has agreed to buy 2.34 million common shares for US$17.15 each.
The company said the net proceeds will be used to fund exploration on Juanicipio and its other projects including Deer Trail, as well as certain sustaining capital requirements at the Juanicipio Project and for working capital and general corporate purposes.
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Interfor Corp. (IFP-T) announced it will acquire Eacom Timber Corp., a lumber producer with operations across Ontario and Quebec, for $490-million.
The acquisition includes seven sawmills with a combined annual spruce-pine-fir lumber production capacity of 985 million board feet; an I-Joist plant with an annual production capacity of 70 million linear feet; a remanufacturing plant with an annual production capacity of 60 million board feet and rights to access approximately 3.6 million cubic meters per year of responsibly managed and internationally certified fibre supply.
The company said the purchase price includes $120-million of net working capital. Interfor will also assume Eacom’s countervailing and anti-dumping duty deposits at closing, for consideration equal to 55 per cent of the total deposits on an after-tax basis. As of Sept. 30, Eacom had paid cumulative CV and AD duties of US$150-million.
“This transaction makes Interfor a truly North American lumber producer, with operations in all the key fibre regions on the continent, further diversifying and de-risking our operating platform and enhancing our growth potential and opportunity set,” stated CEO Ian Fillinger.
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WeCommerce Holdings Ltd. (WE-T), which provides e-commerce software tools for businesses, reported third-quarter revenue of $10.9-million up from $5.1-million a year ago. Analysts were expecting revenue of $11.2-million, according to S&P Capital IQ
The net loss was $3-million versus net income of $405,605 a year ago.
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PetroShale Inc. (PSH-X) reported net income of $15-million or 3 cents per share in the third quarter compared to a net loss of $9.1-million or 5 cents a year ago.
Revenue came in at $68.2-million versus $32.9-million a year ago.
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Laurentian Bank of Canada (LB-T) announced that it expects to record certain charges in its fourth quarter and fiscal 2021 results in relation to its strategic review.
The bank estimated it will reduce reported earnings by $209-million pre-tax, or $163-million after-tax, and adjusted earnings1 by $19-million pre-tax, or $14-million after-tax. Reported diluted earnings per share are expected to be impacted by approximately $3.73 and adjusted diluted earnings per share2 by 33 cents, the bank stated.
The expected impact on expenses on a pre-tax basis, is estimated to generate approximately $4-million of cost reductions for the fourth quarter of 2021 and $20-million of ongoing cost reductions starting in 2022, the bank stated, adding these are mainly due to lower amortization charges and lower rent expenses.
“These difficult but necessary changes make us more confident than ever about our future,” said Rania Llewellyn, CEO, in a release. “As an organization, we have never been more unified, with a renewed management team and employees that are focused on our customers. We continue to maintain a strong capital and liquidity position that support our strategic investments in the Bank’s future and reposition us for sustainable, long-term profitable growth.”
The bank said it would unveil its new strategic plan at a virtual investor day on Dec. 10.
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Sleep Country Canada Holdings Inc. (ZZZ-T) announced a $500,000 investment for a 25-per-cent ownership stake of Sleepout Inc., a Canadian startup specializing in portable blackout curtains.
“As demand for sleep wellness products grows, Sleep Country’s investment will support Sleepout’s entry to the market and its mission of helping people get a better night’s sleep,” the company stated.
The company has already established a customer base through one of Kickstarter’s top campaigns that ran from June to July 2021 and sold over 3,000 units, Sleep Country stated in a release. Subsequent to Kickstarter, Sleepout launched a crowdfunding campaign on Indiegogo that generated additional revenue and customer interest.
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Quarterhill Inc. (QTRH-T) says one of its Wilan division’s wholly-owned subsidiaries has acquired a patent portfolio from a publicly-traded leader in semiconductor technologies.
“The acquired patents relate to wired connectivity functionality, including various USB-C technologies used in a wide range of applications such as desktop and laptop computers, tablets, mobile phones, gaming consoles, and smart TVs,” the company stated, adding that all other terms of the transaction are confidential.
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Organigram Holdings Inc. (OGI-T) reported net revenue increased 22 per cent in its fiscal fourth quarter ended Aug. 31 to $24.9-million, from $20.4-million a year ago. The result was slightly ahead of expectations of $23.5-million.
“The increase was primarily due to an increase in adult-use recreational revenue, partly offset by the decrease in international revenue, medical revenue, wholesale revenue to other licensed producers and a lower average net selling price,” the company stated.
Its net loss was reduced to $26-million, compared to a net loss of $38.6-million a year ago.
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Enthusiast Gaming Holdings Inc. (EGLX-T) announced it has acquired Outplayed, Inc., owners of U.GG, one of the largest League of Legends fan communities in the world, for US$45-million in cash and stock.
The deal also includes earnouts of potentially up to $12-million subject to certain performance milestones being achieved within a two-year period from the date of closing.
“League of Legends is one of the biggest games in the world, and U.GG is one of the game’s largest fan communities and stats sites,” stated Adrian Montgomery, CEO of Enthusiast Gaming, in a release. “Financially, the Acquisition is accretive and integrates very well within our existing business model, adding new media availability and opportunities for our direct sales team, proprietary content, and subscription offerings. Shinggo, Alan, and the U.GG team have built something special, and we are excited to welcome them to the Enthusiast Gaming family.”
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