Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Cascades Inc. (CAS-T) announced that it expects fourth-quarter financial results to be below the revised expectations communicated on Dec. 22.
It expects reported preliminary unaudited adjusted operating income before depreciation and amortization (OIBD) of $62-million.
“The rapid escalation of the omicron variant in the last two weeks of December compounded already existing constraints in labour availability and transportation and supply chain challenges, primarily in the containerboard and tissue segments,” the company stated. “These factors triggered a notable and immediate escalation in costs and resulted in unplanned production downtime in several of the corporation’s operations and unprecedented challenges with product deliveries.”
Cascades said the effect was felt mostly in Canada, where the impacts of the flooding in Western Canada continued to disrupt rail transport and trucking.
The company said it will release official results on Feb. 24.
**
Fire & Flower Holdings Corp. (FAF-T) announced it has amended certain terms of its previously announced option agreement and licensing agreement with Fire & Flower US Holdings Inc.
The company said the strategic agreements provide it with a path to acquire corporate-owned cannabis retail stores in major markets in the U.S. and deploy the Hifyre technology platform south of the border.
Under the agreements, Fire & Flower has the option to acquire Fire & Flower US, “which acquisition is expected to occur upon the federal legalization of adult-use cannabis in the United States or when otherwise permitted by the policies of the Toronto Stock Exchange or any other stock exchange on which the Company’s securities are listed for trading.”
**
Hexo Corp (HEXO-T) announced that it received notification from The Nasdaq Stock Market LLC that its shares aren’t in compliance with the minimum bid price requirement on that exchange after its shares fell below US$1 for 30 consecutive trading days.
The company has 180 days to regain compliance. The company said the notification doesn’t impact its listing on the Toronto Stock Exchange.
**
Perseus Mining Limited (PRU-T) announced that it agreed to acquire a 15-per-cent interest in Orca Gold Inc (ORG-X) from Resolute Mining Limited for about $17.5-million. Orca’s key assets include a 70-per-cent interest in the Block 14 Gold Project in northern Sudan and a 31.5-per-cent interest in Montage Gold Corp., which owns the Koné Gold Project in northern Côte d’Ivoire.
As part of the deal, Perseus acquired 39.1 million common shares in Orca from RSG representing for 44.8 Canadian cents each.
As part of the acquisition, Perseus said it has agreed to provide Orca with a US$5-million short-term loan facility, which Orca plans to use for working capital and for further exploration and development activities at Block 14.
**
Goeasy Ltd. (GSY-T) announced “enhancements” to its existing revolving securitization warehouse facility and senior secured revolving credit facility.
The company announced an increase to its securitization facility to $900-million from $600-million and amendment to its credit facility to $270-million from $310-million with the maturity extended to Jan. 27, 2025 and a reduction to the interest rate payable on advances.
“The enhancements to our funding facilities represent another key milestone in developing a scalable and diversified capital structure, while providing sufficient liquidity to fund our organic growth through the end of 2024″, stated CEO Jason Mullins in a release.
**
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.