Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Aimia Inc. (AIM-T) has reached a deal with a group of dissident shareholders to revise its board of directors and buy back up to $125 million worth of its shares.
The agreement ends a dispute with the group led by Charles Frischer that had sought to overthrow half of Aimia's eight-member board. Aimia sold its flagship Aeroplan program to Air Canada earlier this year.
The deal left Aimia with significant cash on hand, but also questions about its future.
Under the terms of the shareholder agreement, the company has agreed to a plan to reconstitute its board no later than Feb. 28, 2020, ahead of the company's next annual meeting, to be held no later than April 30, 2020.
A request for a special meeting of shareholders has been also withdrawn by the requisitioning dissident shareholders and Aimia and Mittleman Brothers LLC, the company's largest shareholder, have agreed to end their legal fight.
All six of the company's current, non-management directors, excluding Philip Mittleman, have confirmed that they will not stand for election to the board at the company's 2020 annual meeting.
-The Canadian Press
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Western Forest Products Inc. (WEF-T) announced that the company’s talks have broken off with the United Steelworkers Local 1-1937. “Active negotiations are no longer occurring and no future mediation dates have been scheduled at this time,” the company stated.
CEO Don Demens said Western "tabled a fair proposal" on the weekend, "with the goal of ending the strike and bringing people back to work." After about 14 hours of bargaining occurring over the weekend, Mr. Demens said independent mediators told the company that talks were over.
The strike started on July 1 and includes about 1,500 of the company’s hourly employees and approximately 1,500 employees working for its timberland operators and contractors in B.C., the company stated.
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Cott Corp. (COT-N; BCB-T) announced that its subsidiary DS Services of America, Inc. has acquired WG America Company and certain affiliated companies behind the “The Water Guy” brand. The price wasn’t disclosed in the release.
“The Water Guy shares our commitment to quality products and superior customer service and offers the opportunity to further increase route density,” said Dave Muscato, president of DS Services.
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MedMen Enterprises Inc. (MMEN-C) announced late Friday layoffs and other cost-cutting measures as part of a “strategic plan to achieve its target of positive EBITDA by the end of calendar year 2020.”
The company said its 90-day plan will focus on five key objectives including divesting non-core assets, reducing expenses and "reinvesting in the company’s employees and culture."
The company said it initiated the process of laying off more than 190 employees, including over 80 corporate-level employees. It said the corporate-level layoffs represent more than 20 per cent of its corporate employee base. It expects the move to save about $10-million annually.
MedMen also announced the sale of its stake in Treehouse Real Estate Investment Trust for net proceeds of $14-million. MedMen also said it intends to limit significant cash outlays including delaying capital-intensive projects. It said about $55-million in capital expenditures are now on hold.
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Hexo Corp. (HEXO-T) announced late Friday that it grew marijuana in an unlicensed facility, but federal regulators cleared the company of any wrongdoing.
Gatineau-based Hexo said the problems occurred at a facility in Ontario’s Niagara region previously owned by Newstrike Brands Inc., which Hexo acquired in July.
According to Hexo, Newstrike began growing cannabis at the site in November, 2018, after receiving what it believed to be the appropriate paperwork from Health Canada.
Federal inspectors subsequently visited the site in February and raised no questions about the marijuana crop. In July, shortly after the Newstrike acquisition closed, Hexo employees discovered the site was not adequately licensed.
“Hexo management immediately ceased cultivation and production activities in the unlicensed space,” Hexo said Friday in a press release. It said: “The company notified Health Canada instantly, and the regulator was satisfied with Hexo management’s corrective actions.” Hexo closed the Niagara facility in October as part of a cost-cutting initiative.
On Friday, the company said: “Hexo is choosing to proactively address this occurrence now as it recently became aware of false information that was being circulated to damage the reputation of the company.”
- Andrew Willis
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Acreage Holdings, Inc. (ACRG.U-C) announced that it’s buying Compassionate Care Foundation, Inc., a New Jersey cannabis non-profit corporation. The price wasn’t disclosed in the release.
Acreage said New Jersey is estimated to generate US$317-million in legal medical cannabis sales by 2022, citing Arcview Market Research.
Acreage said the deal includes a "reorganization agreement" that CEO Kevin Murphy said will result in increased access to affordable medical cannabis for New Jersey’s existing patients. "Moreover, we have long believed that upon adult-use legalization, the New England and Mid-Atlantic regions will be the preeminent cannabis market in the U.S. and Acreage is best positioned of any U.S. cannabis company to benefit," he stated.
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