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Our roundup of Canadian small-caps of between $100-million and $3-billion in market capitalization making news

Tidewater Renewables Ltd. (LCFS-T) announced an agreement to sell Federal Clean Fuel Regulation credits that it will receive through the production and sale of fuel produced at the Renewable Diesel & Renewable Hydrogen Complex at Prince George, B.C. As part of the sale, Tidewater Renewables has agreed to sell a total of 25,000 CFR credits for $100 each.

It also announced the appointment of Ray Kwan as its new chief financial officer. Current president and CFO Joel Vorra will remain with the corporation in an advisory capacity for the remainder of 2022.

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Lion One Metals Ltd. (LIO-X) announced a $12.5- million bought-deal financing. It has an agreement with Eight Capital and Canaccord Genuity Corp., co-lead underwriters and joint bookrunners, that will buy 16,240,000 units of the company for 77 cents each.

Each unit will include one common share and one-half of one common share purchase warrant exercisable at a price of $1.05 for 36 months.

The net proceeds will be used for the exploration and development of the company’s Tuvatu Gold Project, as well as working capital and general corporate purposes.

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Aurora Cannabis Inc. (ACB-T) reported revenue of $50.2-million for its fourth quarter ended June 30 compared to $54.8-million in the same quarter a year ago. The expectation was for revenue to come in at $50.4-million, according to S&P Capital IQ.

Its net loss was $618.8-million compared to $134-million for the same period in the prior year.

“The increase in net loss was primarily due to non-cash impairment charges of $505.1-million recorded in other income (expense) during the current quarter to write-down goodwill, intangibles assets and property, plant and equipment,” the company stated, adding that the charges were triggered by “changes in cannabis market conditions, and in the current capital market environment including higher rates of borrowing and lower foreign exchange rates.”

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Dialogue Health Technologies Inc. (CARE-T) provided a third-quarter outlook, including revenue that’s expected to be in the range of $23.2-million to $23.5-million. The expectation was for revenue to come in at $25-million, according to S&P Capital IQ.

The company bought Optima Global Health in 2020 and said Optima recently received a notice from one of its customers confirming that it will not renew its agreement with the company. The agreement, which ends Dec. 31, represented revenue of approximately $4.6-million in the 12 months ended July 31, the company said.

“While disappointed to lose a customer, we stand by our strategy to focus on higher margin, tech-enabled services that deliver superior outcomes,” stated CFO Navaid Mansuri. “The churn at Optima represents lower margin revenue that varies based on utilization and that we expect to replace with more stable recurring revenue on our Integrated Health Platform.”

The company said the impact on adjusted EBITDA is expected to be limited. “The net result will be a higher gross margin profile for our business. We remain committed to breakeven EBITDA by the end of 2023, and are well-capitalized to achieve our growth and profitability objectives,” Mr. Mansuri stated.

Adjusted EBITDA in the third quarter is expected to be in the range of a loss of $4.7-million to $4.5-million, which is in line with expectations.

The company also said its momentum in the third quarter to date has been strong, having added more than $5.2-million in new annual recurring revenue and expects to record more gains before the end of the period.

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Neo Performance Materials Inc. (NEO-T) announced it has approved the adoption of a shareholder rights plan.

It said the rights plan is not being adopted in response to any specific proposal to acquire control of the company, and the board is not aware of any “pending or threatened takeover bid for the company.”

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North American Construction Group Ltd. (NOA-T) announced that it has finalized an extension and amendment of its senior secured credit facility. It said the facility maturity date has been extended by one year with a new maturity date of Oct. 8, 2025. “In addition to the extension of existing favourable terms, the overall capacity has been allocated to provide greater flexibility in operating the Company’s joint ventures,” the company stated.

The credit facility maintains overall liquidity of $475-million while adjusting its borrowing capacity to $300-million from $325-million and increases the allowance for equipment financing and joint venture financial support to $175-million from $150-million.

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