Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Hudson’s Bay Co.'s (HBC-T) board committee has hired advisers to help evaluate a $1-billion take-private bid by the retailer’s executive chairman, and it pledged to consider criticism from minority shareholders.
The committee said it hired Toronto-Dominion Bank as independent valuator and Centerview Partners LLC as special adviser. It previously announced it had retained JPMorgan Securities as financial adviser and Blake, Cassels & Graydon LLP as legal counsel.
The board formed the committee of five directors to evaluate a $9.45-a-share offer from a group led by HBC executive chairman Richard Baker, announced in early June. The bidding group, which also includes such investors as Rhone Capital LLC and office-sharing company WeWork Property Advisors, has said holders of 57 per cent of the department store chain’s shareholders support the bid.
Minority shareholders including Land & Buildings Investment Management LLC, Catalyst Capital Group Inc. and Sandpiper Group oppose the bid, saying it represents a fraction of what HBC’s real estate in Canada and the United States is worth should it be sold. The retail operations have struggled in recent years, however.
Some investors have called on the board to launch a formal sales process and seek higher bids.
-Jeffrey Jones
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Exfo Inc. (EXFO-Q; EXF-T) said its sales increased 1.9 per cent to US$73.6-million in the third quarter from US$72.2-million in the same quarter a year ago. The results were in line with expectations of US$73.5-million. Net earnings totalled US$21,000 or nil per share compared to a net loss of US$6-million or 11 cents per share a year earlier.
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Theratechnologies Inc. (TH-T) reported second-quarter revenue was a record $15.6-million, up nearly 63 per cent from a year ago. Its net loss was $3.2-million or 4 cents per share compared to a loss of $1.9-million or 3 cents a year ago.
The company also confirmed that its board has authorized management to apply for the listing of its common shares on Nasdaq.
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HEXO Corp (HEXO-T; HEXO-A) announced it has received approval from the New York Stock Exchange to transfer the listing of its common shares from the NYSE American LLC to the NYSE. HEXO expects to begin trading on the NYSE effective at the open of markets on July 16.
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Goodfood Market Corp. (FOOD-T) reported revenue of $49.9-million in its third quarter ended May 31, compared to $22.2-million in the same period a year ago. Analysts were looking for revenue of $43.2-million in the latest quarter. Its net loss widened to $3.6-million or 6 cents per share versus a loss of $1.6-million or 3 cents a year ago.
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CannTrust Holdings Inc. (TRST-T) hid thousands of cannabis plants behind temporary walls in order to stage misleading photographs of an unlicensed growing room that were sent to Health Canada, a former CannTrust employee alleges.
The Vaughan, Ont.-based cannabis producer is under investigation by Health Canada after federal regulators found CannTrust was growing cannabis in five unlicensed rooms in its greenhouse in Pelham, Ont., between October, 2018, and March, the company acknowledged Monday. The announcement sent CannTrust’s NYSE-listed stock plummeting 36 per cent since Monday.
-Mark Rendell
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K92 Mining Inc. (KNT-X) announced an $18.6-million bought-deal financing. It has entered into an agreement with Clarus Securities Inc., as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters, to purchase about 9. 5 million shares at $1.90 each. The stock closed at $2.02 on Wednesday.
The company said it plans to use the net proceeds for general corporate and working capital purposes.
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Green Growth Brands Inc. (GGB-CN) announced it has received a purchase order from American Eagle Outfitters, Inc. (AEO-N) through which it will sell hemp-derived cannabidiol (CBD) infused personal care products in nearly 500 of its American Eagle (AE) stores and online.
“We are very pleased to be partnering with American Eagle, a leader in the specialty retail space,” said Green Growth Brands CEO Peter Horvath. “GGB provided the expertise necessary to develop the product formulations and packaging to create a really special line of products.”
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