A look at some small-cap stocks making news - or about to.
Canada’s S&P/TSX Small Cap Index (TXTW-I) is up by about 80 per cent over the past 52 weeks as of Tuesday’s close. It hit a record 1,472.51 on March 2. The Russell 2000 in the U.S. is up about 44 per cent over the past 52 weeks, as of Wednesday’s close. It hit a record of 2,735.10 on Jan. 22.
Small-cap summary:
Poet Technologies Inc. (POET-Q) shares rebounded on Wednesday after falling on Tuesday, following the Toronto-based company’s statement on its tax status amid a short seller report on the issue.
On Tuesday, Wolfpack Research revealed a short position in Toronto-based Poet, an opto-electronics component specialist. In a report released on Tuesday, Wolfpack alleged that the company is an “obvious stock promotion” that is “not just diluting U.S. investors, but sticking them with a massive tax liability and potential lifetime of misery with the IRS.”
Poet shares closed down 8 per cent on Tuesday on the Nasdaq.
After markets closed on Tuesday, Poet issued a release announcing plans to redomicile in the U.S. to address concerns about a potential classification as a Passive Foreign Investment Company (PFIC).
“As the company looks to 2026, we believe that we will not qualify as a PFIC. Nevertheless, the board of directors has declared its intention to move the company’s headquarters to and redomicile the company in the U.S. so that it will no longer be a foreign corporation, which would eliminate the possibility of the company being classified as a PFIC in future years,” stated Thomas Mika, Poet’s executive vice-president and chief financial officer.
**
Aurora Cannabis Inc. (ACB-T) announced the acquisition of Safari Flower Company, a cannabis cultivator and manufacturer, for $26.5-million.
Safari Flower has a 59,000-square-foot indoor cultivation and manufacturing facility in Ontario that Aurora said will provide it with “incremental capacity that is closely aligned with its existing cultivation and manufacturing sites.”
It said the increased capacity will be used to supply EU GMP flower to Aurora’s key international markets, including Germany, Australia, Poland, and the UK, and support further market expansion.
Aurora shares opened up about 4 per cent Wednesday.
“We believe the deal is a strategic fit given the growth of several international cannabis markets (particularly on the back of German de-scheduling), the company’s clear focus on the medical category, and runway for acquisition opportunities given ACB’s balance sheet flexibility,” TD analyst Derek Lessard said in a note.
**
AGF Management Ltd. (AGF-B-T) shares were down again on Wednesday, after falling 16 per cent on Tuesday, after the asset manager reported first-quarter results that missed expectations and a near $17-million writedown.
Before markets opened on Tuesday, AGF reported revenue of $133.8-million for the quarter ended Feb. 28, below expectations of $154.4-million, according to S&P Capital IQ estimates, and compared with $122.8-million a year earlier.
Adjusted EBITDA of $30.3-million was down from $47.9-million a year earlier and below expectations of $48.9-million.
Net income of of $18-million or 27 cents per share compared to $30.9-million or 46 cents a year ago. Adjusted net income of $19.7-million or 30 cents compared to $31.1-million or 48 cents a year earlier. The expectation was for adjusted EPS to come in at 50 cents per share.
AGF reported total assets under management and fee-earning assets of $60.5-billion compared to $53.8-billion as of February 28, 2025.
AGF also declared a 13.5 cents-per-share quarterly dividend, which it said was up 8 per cent from a year ago.
“Our business continues to demonstrate its durability as a result of our multi-year strategy to diversify across asset classes and client channels allowing us to navigate the impacts of the current economic environment while maintaining our strong balance sheet,” stated CEO Judy Goldring.
During the quarter, the company took a $16.8-million fair value adjustment on AGF Capital Partners’ legacy infrastructure investments, which TD analyst Graham Ryding said led to the “significant EPS miss.”
He said adjusted EPS of 30 cents was well below his 51-cent estimate.
“While the FMV [fair market value] adjustment within AGF Capital Partners (alternatives) was a disappointment and drove the quarterly miss, earnings in this area can be lumpy, and the performance track record here is strong,” he wrote, while maintaining his “buy” citing “strong fundamentals” and $20 target price on the stock. He also called the Tuesday selloff “overdone.”
BMO analyst Tom MacKinnon kept his “market perform” and $20 target on the stock, citing “continued market uncertainty and fee pressures in [a] saturated Canadian market.”
**
Blue Ant Media Corp. (BAMI-T) shares dropped on Tuesday after the company reported a wider second-quarter loss and broader results that missed expectations.
Before markets opened on Tuesday, the entertainment company reported revenue of $70-million for the quarter ended Feb. 28, below expectations of $72.5-million, according to S&P Capital IQ. The result was up from $38.4-million posted in the prior-year period.
“This significant increase was predominantly earned in the company’s production and distribution segment from both proprietary and service production,” the company stated, noting the results reflect the acquisition of three production companies as part of the reverse takeover before going public, and one month of Thunderbird Entertainment, which did not factor into the prior year’s results.
“Strong performance in global channels and streaming also contributed to the favourable year-over-year results,” it stated.
Adjusted EBITDA of $3.8-million compared to $4.1-million a year earlier. The result was below expectations of $4.1-million based on one analyst estimate.
Its net loss of $6.2-million or 23 cents per share compared to a loss of $5-million or 30 cents a year earlier. The company said the wider loss was the result of a “significant period of integration” given its transactions, which led to $7.4-million in expected transaction, restructuring, and share-based compensation costs.
“Our second-quarter results reflect integration-related costs, product mix, and a softer advertising market, all of which are impacting near-term margins,” said CEO Michael MacMillan in a release. “As previously disclosed, our results typically ramp up in the back half of the fiscal year, and we expect a similar trajectory in 2026, supported by a solid content pipeline.”
National Bank Financial analyst Ahmed Abdullah lowered his target by 50 cents to $10.50 after the earnings report and maintained his “outperform” (buy).
“On its conference call, BAMI noted that the ad market remains soft due to macro uncertainty, which has stepped up since the end of February on heightened global geopolitical tensions and reduced consumer confidence,” he wrote. “For BAMI, the biggest impact is felt across Canadian linear TV advertising which continues to be weak. On the streaming side, there is a disconnect between rapidly growing viewership across FAST and other connected TV formats and a lagging advertising demand which is leading to depressed CPMs (partially explained by the elevated supply). BAMI expects this imbalance to gradually correct as ad dollars migrate towards audiences, but timing is uncertain.”
**
Savaria Corp. (SIS-T), the Montreal-based seller of home accessibility equipment such as elevators and stairlifts, provided first-quarter guidance and a five-year outlook this week.
Before markets opened on Tuesday, the company said it expects first-quarter revenue to come in at about $235-million, up about 7 per cent versus the same period last year. The expectation was for first-quarter revenue of $231.9-million, according to S&P Capital IQ.
Adjusted EBITDA is expected to be approximately $48-million, or about 18 per cent above last year, and representing an adjusted EBITDA margin of approximately 20 per cent. The expectation is for adjusted EBITDA of $46.4-million.
Savaria also provided a longer-term outlook, including a targeted “top-line increase” of 12 per cent per year for the next five years, “derived from organic and acquisition growth.”
The company said the growth would bring it to approximately $1.6-billion in revenue at the end of 2030, while maintaining adjusted EBITDA margins of approximately 20 per cent.
“Ultimately, this should increase adjusted EBITDA per share to approximately $4.25 by 2030,” the company stated.
Stifel analyst Justine Keywood increased his target to $35 from $31 and maintained his “buy” rating after the company updated.
“Management’s commercial strategy for improving organic volume growth include greater stairlift penetration in the U.S., best-in-class product line driving leadership in the burgeoning through-the-floor-lift marketplace, ‘partner-of-choice’ status for dealers, and a new sales-oriented team in place to drive B2B/DTC business across both the U.S. and Europe,” are driving the growth, he wrote in a note.
TD analyst Derek Lassard described the company outlook at “positive” in a note, adding that the company’s cost-efficiency efforts are paying off.
“2025 revenue reached $913.5mm and adj. EBITDA margins were up to 20.4%, validating multi-year operational, procurement, pricing, and supply chain initiatives,” he wrote.
He also said the company’s revenue and adjusted EBITDA guidance were above his forecasts.
“Management highlighted improved cross-factory synergies, pricing consistency, R&D throughput, and supply chain execution as key margin supports,” he wrote.
TD analyst Derek Lessard increased his target price to $35 from $31 after the company update and kept his “buy” rating.
“We came away with strong conviction that SIS is on the cusp of another phase of transformative growth, driven by industry tailwinds, unmatched scale and one-stop-shop capabilities, and M&A,” he wrote in a note. “With strong margins and a capital-light model, we expect SIS to self-fund growth while preserving balance sheet strength and potentially increasing shareholder returns.”
**
Chemtrade Logistics Income Fund (CHE-UN-T) shares were up slightly in Wednesday trading, after dropping 18 per cent on Tuesday, after the company said the District of North Vancouver council rejected the rezoning application for its chlor-alkali facility beyond 2030.
Chemtrade said the rezoning would have allowed “significant safety upgrades and continued liquid chlorine production” at the facility, which it described as the largest producer of liquid chlorine for drinking water treatment in Canada.
CEO Scott Rook described the decision as “disappointing” and said the closure could have “significant impacts which would be felt across the country.
He added: “Throughout the two and half year engagement with the District and the local community, we have received overwhelmingly positive feedback and support. We believe this decision is not in the best interest of District residents or Canadians.” Mr. Rook said the company is working with advisers and supporters to “pursue all possible avenues to achieve our objective of continuing operations at the facility... .”
National Bank Financial analyst Zachary Evershed said in a note that he’s disappointed with the council’s decision “as it prolongs uncertainty for the stock.”
Still, he described the overall risk as “modest, and outweighed by the positive tailwinds highlighted by management... .” The analyst has an “outperform” (buy) on the stock and a $23.50 target.
BMO analyst Joel Jackson lowered his rating to “market perform” (hold) from “outperform” (buy) but kept his $18.50 target price.
“More predictable earnings, index inclusion, rezoning approval, and valuation catch-up to U.S. commodity chems peers were key catalysts for continued outperformance by CHE,” he wrote in a note. “However, with uncertainty now around the path forward at North Van (perhaps generating ~$100-150M EBITDA) beyond 2030 (understanding CHE still has some options as we lay out below), we move to the sidelines, awaiting more clarity.”
**
Secure Waste Infrastructure Corp. (SES-T) shares surged this week after the company announced it was being acquired by GFL Environmental Inc. (GFL-T) for $5.4-billion.
GFL is paying $24.75 per share for Secure, a 16-per-cent premium to the target’s last closing price. GFL will mostly use shares to pay for the deal, with Secure agreeing to receive a split of 80 per cent stock and 20 per cent cash.
If the transaction is approved, Secure shareholders will own 16 per cent of the combined company. Two Secure investors that collectively own 20 per cent of its shares have already agreed to vote in favour of the transaction.
Read the full Globe story here
BMO analyst John Gibson described the deal as a “win” for Secure Waste, “with the transaction multiple implying about 12x 2026E EV/EBITDA.”
After the announcement, he increased his target to the deal price of $24.75, up from $20 and maintained his “market perform” (hold) rating.
CIBC analyst Jamie Kubrick said in a note that the GFL offer provides Secure Waste shareholders with “an attractive premium, while also retaining potential upside of the combined company.”
He added: “The combined company provides shareholders of Secure exposure to additional segments of the waste management value chain, resulting in less revenue concentration and enhanced growth potential. The increase in GFL’s float capitalization could also enhance potential for broader future equity index inclusions.”
He moved his rating to “tender” from “neutral” (hold) and his price target to $24.75 from $22.50 in line with the offer price.
Upcoming small-cap earnings:
April 21: Goodfood Market Corp. (FOOD-T)
April 23: Mullen Group Ltd. (MTL-T)
April 29: Precision Drilling Corp. (PD-T)
April 30: Canada Packers Inc. (CPKR-T), Allied Properties REIT (AP-UN-T), Badger Infrastructure Solutions Ltd. (BDGI-T), Spin Master Corp. (TOY-T)
May 1: Real Matters Inc. (REAL-T)
May 4: Cargojet Inc. (CJT-T), Thinkific Labs Inc. (THNC-T), Propel Holdings Inc. (PRL-T)
May 5: Curaleaf Holdings Inc.(CURA-T), Russel Metals Inc. (RUS-T), Sienna Senior Living Inc. (SIA-T), Flagship Communities REIT (MHC-UN-T), Ballard Power Systems (BLDP-T)
May 6: Western Forest Products Inc. (WEF-T), SmartCentres REIT (SRU-UN-T), Canfor Corp. (CFP-T)
May 7: Maple Leaf Foods Inc. (MFI-T), Killam Apartment REIT (KMP-UN-T), Pason Systems Inc. (PSI-T), Altus Group Ltd. (AIF-T), Extendicare Inc. (EXE-T), NFI Group Inc. (NFI-T), Ag Growth International Inc. (AFN-T), MDA Space Ltd. (MDA-T)
May 8: Docebo Inc. (DCBO-T), CES Energy Solutions Corp. (CEU-T)
May 9: Roots Corp. (ROOT-T)
May 11: Cineplex Inc. (CGX-T), CT REIT (CRT-UN-T), Minto Apartment REIT (MI-UN-T), Cineplex Inc. (CGX-T)
May 12: RFA Financial Inc. (RFA-T), Parex Resources Inc. (PXT-T), True North Commercial REIT (TNT-UN-T), BTB REIT (BTB-UN-T)
May 13: Superior Plus Corp. (SPB-T), Bird Construction Inc. (BDT-T), Total Energy Services Inc. (TOT-T), BSR REIT (HOM-U-T), Pollard Banknote Ltd. (PBL-T), Automotive Properties REIT (APR-UN-T), Slate Grocery REIT (SGR-UN-T), Mattr Corp. (MATR-T)
May 14: Corby Spirit and Wine Ltd. (CSW-A-T), H&R REIT (HR-UN-T), Interfor Corp. (IFP-T)
May 21: Lightspeed Commerce Inc. (LSPD-T)