A look at some small-cap stocks making news - or about to
Canada’s S&P/TSX Small Cap Index TXTW-I is up 33 per cent over the past 52 weeks as of Thursday’s close. It hit a record high of 1,089.01 on Sept. 24. The Russell 2000 in the U.S. reached a record of 2,488.84 on Sept. 23 and is up 10 per cent over the past 52 weeks.
Small-cap spotlight
Spin Master Corp. (TOY-T) shares were down for the second day in a row on Friday after the company warned on Thursday afternoon of possible revenue-recording delays in the coming quarters amid tariff-related order shifts. The update led at least one analyst to cut his target price on the stock.
At an investor conference on Thursday afternoon, Spin Master chief financial officer Jonathan Roiteris said the shift in retailers taking orders via domestic delivery rather than direct import – known as free on board (FOB) – is having a greater-than-expected impact in the third quarter. (With FOB, retailers pick up orders in China and the company is paid immediately instead of having it shipped to the company and then to retailers, which delays recording of revenues).
“The demand is there ... We’re growing and we’re growing faster,” Mr. Roiteris said in a “fireside chat” alongside CEO Christina Miller at the CIBC Eastern Institutional Investor Conference in Montreal. Still, he said it’s taking “a little bit longer for the revenue to be recognized.” Mr. Roiteris also said it’s possible that some revenue will be recognized in the first quarter, rather than the fourth quarter.
“Our focus is to make sure we have the right products; make sure that we’re relevant with our consumers; make sure we’re relevant with the retailers, which we are,” said Mr. Roiteris, who took over the CFO position in May. “We’re confident the revenue will follow, but it’s taking a bit longer for it to follow.”
Ms. Miller, who took over the top job in July after five years on the board, said the company had a solid strategy in place, but “we just maybe haven’t been executing it as well as we could.” She said the company plans to be disciplined with capital allocation and improve efficiencies by better controlling costs.
The company said it will continue to hold back on offering guidance, which it pulled earlier this year – alongside other public companies – amid tariff uncertainties.
“We don’t actually have stability yet on the tariff front,” Mr. Roiteris said.
National Bank Financial analyst Adam Shine lowered his target to $27 from $29 but maintained his “outperform” (buy) rating after the investor presentation.
“We’ll see if September shipments fall into October or not,” he said in a note released late Thursday, adding that “planogram resets by retailers that usually occur in August & September are being delayed until early October and the recent typhoon in China hasn’t helped.”
He added that the company’s Melissa & Doug products have grown with new product launches, but have been impacted by tariffs, “as most of its product is sold in the United States and produced in China.”
Mr. Shine is now forecasting gross product sales of $692-million, down from $765-million for the third quarter, total revenues of $688-million, down from $752-million (consensus of $759-million), and adjusted EBITDA of $172-million, down from $198-million (consensus of $194-million).
The stock is down 38 per cent so far this year, as of Thursday’s close.
Small-cap summary
Other small caps making news this week
Dentalcorp Holdings Ltd. (DNTL-T) shares surged in early Friday trading after the company announced that it struck an agreement to be taken private in a friendly deal valued at $2.2-billion.
The company, which went public in 2021, announced before markets opened on Friday that it will be acquired by private equity firm GTCR for $11 in cash per share, a premium of approximately 33 per cent to both the closing price on the Toronto Stock Exchange on Thursday.
The company, which includes networks of dental practices, also said it has voting support agreements with shareholders representing about 60 per cent of the shares.
“This transaction affirms the significant value inherent in our business and provides our shareholders with immediate and attractive cash consideration at a significant premium,” stated founder, chairman and CEO Graham Rosenberg in a news release.
“GTCR’s proven track record in healthcare and its commitment to supporting management teams aligns perfectly with our vision for continued growth. As a private company, Dentalcorp will benefit from enhanced flexibility to execute our long-term strategy, invest in technology and professional development, and continue expanding our network of leading dental practices across Canada.”
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NFI Group Inc. (NFI-T) shares dropped in early Friday trading after the Winnipeg-based busmaker reported delivery delays and a recall that it said will impact its third-quarter results.
In the same release issued before markets opened on Friday, the company said it’s responding to “numerous bids” in all its markets and has seen a “marked improvement” in market demand in the United Kingdom. It also stated that it expects the fourth quarter to be strong.
The company said it would provide more details in its third-quarter report on Nov. 6.
“Following a strong first half of 2025, where we continued to capitalize on our improved backlog to drive margin performance, we’ve experienced delivery delays in the third quarter that we expect to adversely impact our quarterly results,” NFI CEO Paul Soubry stated in a release. “We expect that most of these essentially complete vehicles will be delivered in the fourth quarter driving significant volume growth and margin improvements as we end the year.”
The company also announced a recall for certain zero-emission bus models that include batteries from one of its suppliers “due to the potential of a cell short circuit or other cell fault.”
“As the safety of our customers and their passengers remains a top priority, we felt it was necessary to issue this recall. We have provided immediate guidance to customers on interim safety measures, including actions to reduce battery stress and enhance monitoring, while we work with the supplier and our independent experts on developing a permanent solution,” Mr. Soubry added.
NFI said it expects to record a warranty provision in the third quarter of 2025 to reflect future costs associated with the recall. The company said it’s “confident” that its $370-million in liquidity will help it “navigate through the recall.” It expects to include adjustments to adjusted EBITDA and adjusted net earnings for the “non-recurring, unusual warranty provision.”
It also stated that the recall primarily affects buses in operation and isn’t expected to have a material impact on its remaining 2025 bus and coach deliveries or its current financial guidance.
The company also said some of its planned third-quarter vehicle deliveries have shifted into the fourth quarter of 2025.
“The majority of these delayed deliveries are from NFI’s firm backlog and are nearly complete for delivery to customers,” it stated. “These delays are related to the recently announced battery recall and delivery timing of certain other zero-emission buses, as well as ongoing seat supply challenges and timing of some private coach deliveries.”
Looking ahead, NFI said it expects its fourth quarter will be “a strong contributor to overall 2025 financial results with significant year-over-year improvements in delivery volumes and financial performance metrics,” in line with its guidance to deliver approximately 60 per cent of its annual adjusted EBITDA of $320-million to $360-million in the second half of the year.
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Financial-services giant Raymond James Ltd. has boosted its wealth-management division after acquiring three investment adviser teams from RF Capital Group Inc. (RCG-T) that oversee more than $1-billion in client assets.
Raymond James announced Thursday it acquired three Winnipeg-based teams known as Martin Wealth Management, Miles Wealth Management Group and Ruban Stark Wealth Partners, just months after RF Capital – a $40-billion independent investment firm known as Richardson Wealth – announced it had sold the business to iA Financial Corporation Inc.
The departures – which include team leaders Ken Martin, Benji Miles, Jeremy Ruban and Trevor Stark as well as nearly a dozen associate advisers and support staff – could be a sign of uncertainty for Quebec-based iA Financial (IAG-T), which had agreed to pay $20 a share, a 107-per-cent premium, for the group of 189 investment advisers.
Read the full Globe story here
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Interfor Corp. (IFP-T) announced a $125-million bought deal financing that it says will provide greater financial flexibility to navigate near-term market volatility.
After markets closed on Thursday, the company stated that it has an agreement with a syndicate of underwriters led by RBC Capital Markets and Scotiabank to purchase 12.4 million shares at $10.05 each. The stock closed at $10.78 on Thursday.
“Since Interfor reported its second-quarter results on August 7, 2025, lumber markets have weakened significantly as reflected in a 16% decline in the Framing Lumber Composite benchmark price,” the company stated in the release. “At the same time, the softwood lumber duty cash deposit rate imposed by the U.S. on shipments from Canada increased materially to 35.16%. This duty rate increase, combined with other factors, required Interfor to record an incremental non-cash duty expense of approximately US$125-million in the current quarter.”
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Pollard Banknote Ltd. (PBL-T) issued a release after markets closed on Thursday stating that the California Lottery has named it the primary contractor for Scratchers Products, which are instant tickets, as well as related services. The company said the new contract is expected to start Dec. 1 and includes an initial term of six years with the option to extend for up to six additional years.
“As the primary contractor, Pollard Banknote anticipates providing approximately 70% of the Lottery’s Scratchers games over the life of the contract,” the company stated, adding that it has supported the California Lottery for more that 25 years as a secondary supplier.
“We are extremely excited to expand our relationship with one of the largest and most successful lotteries in the world,” said co-CEO Doug Pollard stated in the release.
“We view the announcement as a strong positive win for the company given the size and scale of the California lottery and the displacement of a major competitor,” Acumen Capital analyst Jim Byrne said in a note. He has a “buy” and $32 target on the stock.
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Aya Gold and Silver Inc. (AYA-T) shares sank on Thursday after a short-seller report alleged the company “inflated” its silver resource at Zgounder. In a release late Thursday, Aya stated that it “strongly refutes the misleading and inaccurate claims contained in the short-seller report.”
Blue Orca Capital wrote that it short Aya “because we believe there is overwhelming evidence that Aya inflated its silver resource at Zgounder, its only producing asset, by over 100%, potentially reflecting as many as 50+ million phantom ounces. In our opinion, this explains why grades are plummeting, production has been dire, and cash flows are anemic despite soaring silver prices.”
In its statement, Aya wrote that the short-seller report “contains numerous inaccuracies and mischaracterizations, including about Aya’s current management team, operations, and resource base, which the corporation believes are intentionally misleading and are intended to benefit the short seller, which has itself disclosed that it stands to profit in the event that the corporation’s share price declines, at the expense of Aya shareholders.”
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Vecima Networks Inc. (VCM-T) stock sank on Thursday after the company reported lower revenue and swung to a loss in its fourth quarter ended June 30.
Before markets opened on Thursday, the Victoria-based company that makes hardware and software for broadband access, reported revenue of $68.8-million for its fourth quarter ended June 30 down from $87.5-million a year earlier. The expectation was for revenue of $67-million, according to S&P Capital IQ estimates.
Its net loss was $13.2-million or 54 cents per share versus a profit of $8.3-million or 34 cents a year ago. Adjusted EBITDA of $6.7-million compared to $14.5-million last year.
Acumen Capital analyst Jim Byrne maintained his “buy” and $15 target on the stock.
“The long-term growth story from the upgrades of the broadband network appears to be intact. The company anticipates solid annual revenue growth in FY26 and improved margins over the next few quarters,” he wrote in a note.
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Step Energy Services Ltd. (STEP-T) shares soared on Thursday after the company said it received a takeover offer from ARC Financial Corp. for $5.50 in cash per share. The stock closed up 27 per cent to $5.41.
The offer price is a 29-per-cent premium to Step’s closing price on Wednesday.
Funds managed by ARC currently own or exercise control or direction over 55.2 per cent Step shares, the company stated.
Step also said it has a letter from ARC showing support for the agreement among the limited partnerships comprising ARC Energy Fund 8, 2659160 Alberta Ltd. and MMCAP International Inc. SPC relating to the offer.
Step said its board has formed a special committee of independent directors to review and consider the offer and that no decisions have been made about it.
“Last November, ARC had offered to purchase the outstanding shares of STEP for $5, but that deal ultimately failed to pass after it did not receive the required minority shareholder support,” Acumen Capital analyst Jim Byrne said in a note. “With the support of MMCAP, we anticipate the deal will likely be endorsed by the Step board and anticipate the deal to close at $5.50.”
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AGF Management Ltd. (AGF-B-T) reported stronger results for its third quarter ended Aug. 31.
Before markets opened on Wednesday, the asset management firm reported adjusted net revenue of $107.5-million up from $99.8-million for the same quarter last year.
Adjusted EBITDA came in at $46.2-million up from $40.2-million a year ago. The expectation was for $46.3-million.
Adjusted net income of $31.2-million or 46 cents per share compared to $24.5-million or 37 cents last year. The expectation was for EPS of 45 cents.
AGF reported total assets under management and fee-earning assets $56.8-billion compared to $53.5-billion as of May 31 and $49.7-billion as at Aug. 31, 2024.
“We experienced a strong quarter, with net sales outpacing the industry, supported by solid investment performance,” CEO Judy Goldring stated in a release. “These results reflect the health of our business and the strength of our strategy, which emphasizes diversification across asset classes and client channels positioning us to successfully navigate evolving market conditions and investor preferences.”
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Lithium Americas Corp. (LAC-T) shares more than doubled this week after a report that the Trump administration is seeking up to a 10 per cent stake in the miner.
Late Tuesday, Reuters cited two people familiar with the talks who said the administration is considering the stake as part of negotiations over a US$2.26-billion Department of Energy loan for the company’s Thacker Pass lithium project in Nevada, the largest planned lithium mine in the Western Hemisphere.
Vancouver-based Lithium Americas said on Wednesday that it was in discussions with the U.S. Department of Energy and General Motors regarding the Thacker Pass loan.
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Goeasy Ltd. (GSY-T) shares dropped this week after a short-seller report alleged the company is underreporting credit losses. The Mississauga, Ont.-based company responded by calling the report a “false and malicious short attack.”
Jehoshaphat Research released a report on Monday stating that it believes the subprime lender has approximately $300-million in “improperly delayed” credit losses, as well as serious delinquencies, buried in the balance sheet.
The research firm, which is betting that Goeasy’s share price will go down, says it believes the lender’s net charge-off rate for bad loans should be closer to 15 per cent, rather than the nine per cent the company has reported.
“We categorically deny and refute the characterizations and conclusions presented in this report and want to assure all stakeholders that goeasy remains confident in both the quality of our consumer loan portfolio and our ability to serve Canadians with near-to-non-prime credit in a responsible, sustainable way,” the company stated in a release on Wednesday. “To our knowledge, this short seller has not made any effort to engage with us. Instead, it chose to publish an unfounded and misleading document with the clear purpose of advancing its short-selling agenda.”
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Western Forest Products Inc. (WEF-T) announced this week it’s planning temporary operating curtailments at its British Columbia sawmills during the fourth quarter of 2025, citing “persistently weak market conditions, further impacted by significant increases in U.S. softwood lumber duties in August 2025.”
It said the planned curtailments, combined with temporary operating curtailments taken in the third quarter of 2025, will collectively reduce lumber production at its B.C. sawmills by approximately 50 million board feet in the second half of 2025, or about 6 per cent of annual lumber capacity, the company stated.
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Black Diamond Group Ltd. (BDI-T) announced it was buying Royal Camp Services Ltd., a Western Canadian remote accommodation and catering company, for $165-million in cash and shares.
“We are excited to bring together the strengths of the Black Diamond and Royal platforms – especially as Canada focuses its efforts on expediting major nation building projects, which is expected to drive increased activity for workforce accommodation services,” stated Black Diamond CEO Trevor Haynes in a release.
Canaccord Genuity analyst Matthew Lee, who has a “buy” on the stock, increased his target to $17 from $13.50 after the news, stating the acquisition would bolster its free cash and expand its service offering ahead of Canada’s announced Nation Building projects.
“In our view, not only did this deal make sense strategically, it also provides BDI with [about] $30M in annual FCF [free cash flow] (18% yield), which will help fund further fleet growth and deleveraging,” he wrote in a note. “On the synergies front, we view management’s $3M near-term target as the tip of the iceberg and expect the opportunity for meaningful cost rationalization and utilization improvements as we step into F26.”
Acumen Capital analyst Trevor Reynold kept his “buy” recommendation and increased his target to $17.50 from $14.50.
“Overall, we view the acquisition as positive and expect the combined assets to provide BDI with strong exposure to expedited major projects in Canada along with increased defence spending,” he wrote.
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Goodfood Market Corp. (FOOD-T) shares sank earlier this week after the company announced today that its co-founder Jonathan Ferrari will be stepping down from the board, effective immediately.
“The board thanks Mr. Ferrari for his contribution to Goodfood and wishes him well in his future endeavours,” the company stated in a brief news release.
On Aug. 20, the company announced that Mr. Ferrari had stepped down from his CEO and chair roles.
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Dorel Industries Inc. (DII-B-T) announced this week that it’s close to clinching a pool of fresh financing as the Canadian consumer products maker tries to reset its business under pressure from U.S. tariffs.
The maker of Maxi-Cosi baby strollers and DHP daybeds, which has been in financial straits for months, said Monday that it is working to finalize agreements that would recapitalize its balance sheet with up to US$385-million in new credit facilities and a sale of preferred shares. It expects to cement the deals by the end of September.
A group of lenders led by affiliates of TCW Asset Management Company as administrative agent will provide up to US$310-million while Alberta Investment Management Corp. will take a private placement of preferred shares for US$75-million, Dorel said in a news release.
Read the Globe’s full story here
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Upcoming small-cap earnings:
Oct. 1: Novagold Resources Inc. (NG-T)
Oct. 9: Velan Inc. (VLN-T), Tilray Brands Inc. (TLRY-T)
Oct. 22: Precision Drilling Corp. (PD-T)
Oct. 29: Aecon Group Inc. (ARE-T)
Oct. 30: Secure Waste Infrastructure Corp. (SES-T)
Nov. 5: Curaleaf Holdings Inc.(CURA-T)
Nov. 6: Dentalcorp Holdings Ltd. (DNTL-T)
Nov. 14: Conifex Timber Inc. (CFF-T)
-with files from Reuters and The Canadian Press