Small caps to watch: Aurora surges on hostile takeover bid. Plus, Cargojet, Cineplex, AGT Food, Pet Valu and several REITs

Special to The Globe and Mail

Published August 11, 2026

A look at some small-cap stocks making news - or about to. This file will be updated throughout the day on Tuesday.

Canada’s S&P/TSX Small Cap Index (TXTW-I) is up by about 55 per cent over the past 52 weeks. It hit a record 1,496.55 on June 2.

The Russell 2000 in the U.S. is up about 36 per cent over the past 52 weeks and reached a high of 3,048.85 on Aug. 5.

Small-cap summary:

Cipher Pharmaceuticals Inc. (CPH-T) reported lower revenue and profit compared to a year ago.

After markets closed on Tuesday, the company reported revenue of US$12.1-million, down 10 per cent from a year ago.

Net income of US$4-million or 15 cents US per share, compared to US$5.9-million or 22 cents US per share a year ago.

Adjusted EBITDA was US$6.8-million, down from US$7.6-million a year ago.

“While this quarter was a departure from the significant growth we have delivered in recent quarters, our original expectations for the U.S. business, led by Natroba, continue to remain in place, despite market dynamics that may emerge over time, both within the product indication and in Medicaid programs,” stated CEO Craig Mull. “We expect performance to improve in future quarters as certain programs we are implementing take effect.”

Bonterra Energy Corp. (BNE-T) reported higher revenue and swung to a profit for its second quarter.

After markets closed on Tuesday, the Calgary-based company reported revenue of $97.2-million, up from $64.2-million.

Net income totalled $20.7-million or 56 cents per share, including a $16.9-million unrealized hedging gain. That compared to a loss of $1.3-million or 4 cents a year earlier.

Aurora Cannabis Inc. (ACB-T) shares surged on Tuesday after Curaleaf Holdings Inc. (CURA-T) announced a hostile bid to buy the rival cannabis company. Curaleaf shares were also higher in early trading.

Before markets opened on Tuesday, Curaleaf said its proposed offer will provide Aurora shareholders with total implied consideration of US$4 per share, including 0.3463 Curaleaf shares and US$0.75 cash. Curaleaf said the deal implies a premium of 45 per cent over the 30-day volume-weighted average price [VWAP]. Excluding the value of the cash and cash equivalents that Aurora has on its balance sheet, the offer represents a premium of 110 per cent premium to Aurora’s 30-day VWAP, Curaleaf stated.

The company said the offer will be subject to a cap of US$5, “in the event of a substantial rise in the trading price of Curaleaf shares before take-up under the offer.”

If that happens, Curaleaf said it will adjust the number of Curaleaf shares offered.

No formal takeover bid has been made and there is no assurance the proposed offer will ultimately be made, Curaleaf stated.

“We believe this combination represents a win-win for Curaleaf and Aurora shareholders,” stated Curaleaf CEO Boris Jordan. “We are offering Aurora shareholders a unique opportunity to participate in a more highly diversified global platform and increase their exposure to U.S. regulatory tailwinds. By combining Curaleaf’s global distribution platform with Aurora’s leading international medical cannabis franchise and EU-GMP cultivation and manufacturing capacity, we see significant potential to unlock value through substantial cost and revenue synergies.”

Curaleaf said it went public with the offer after “repeated attempts” to engage with Aurora’s leadership started on June 23.

“We approached Aurora privately and constructively on multiple occasions,” Mr. Jordan stated. “We were very disappointed that the board refused to meaningfully engage. We will now take our proposal directly to Aurora shareholders because the premium is significant, the strategic rationale is compelling, and further delay is unjustified. Curaleaf remains ready to engage constructively with Aurora’s Board to advance this value-maximizing transaction, and we are prepared to move quickly toward a definitive agreement.”

In a release on Tuesday afternoon, Aurora said its board intends to form a special committee of independent directors to consider the proposal, “with a view to determining the course of action that is in the best interests of the Company and all stakeholders.”

It added that no decision has been made about the proposal, and there can be no assurance any transaction will result.

“Aurora continues to operate its business as usual while executing on its announced strategic plans,” it stated.

TD analyst Derek Lessard – who covers Aurora but not Curaleaf - said the proposed offer is “positive” but “undervalues the long-term potential of Aurora’s business.”

Added Mr. Lessard: “While we have not yet had an opportunity to speak with management, our ‘positive’ handle reflects Curaleaf’s interest in ACB’s business. However, we believe that the proposed consideration does not fully capture Aurora’s long-term intrinsic value. We believe ACB’s market leadership in medical cannabis, high-quality product portfolio, strong balance sheet, and proven ability to navigate complex international regulatory requirements position the company to create significantly greater value over time.”

Pet Valu Holdings Ltd. (PET-T) jumped on Tuesday after the retailer reported second-quarter results that beat expectations.

Before markets opened on Tuesday, the Markham, Ont.-based company reported revenue was $290.7-million, up 3.6 per cent versus $280.6-million a year ago. The result was ahead of expectations of $289.5-million, according to S&P Capital IQ.

Same-store sales fell 0.2 per cent.

Adjusted EBITDA was $65-million, up 8 per cent versus last year and ahead of expectations of $59.2-million.

Adjusted net income of $28.2-million or 41 cents per share, compared to $26.2-million or 38 cents last year. The expectation was for adjusted EPS of 35 cents.

In its outlook, the company said it expects revenue growth between 2 and 4 per cent, supported by approximately 40 new store openings, flat to 2 per cent same-store sales growth and higher wholesale merchandise sales penetration.

It noted fiscal 2026 will be a 52-week fiscal year, compared to a 53-week fiscal year in Fiscal 2025.

TD analyst Cheryl Zhang described the results as “positive” in a note.

“Consumer spending remains soft as expected, but the good news is PET is gaining share and controlling the controllables, driving EBITDA 10 per cent ahead of consensus,” she wrote. “While this partly comes from timing of gain on re-franchising corporate stores, we are encouraged by the GM per cent strength despite a tougher backdrop (consumers lean into promo, fuel cost inflation).”

Organigram Global Inc. (OGI-T) shares surged on Tuesday after the company reported results that beat expectations for its latest quarter.

Before markets opened on Tuesday, the cannabis company reported revenue of $105.8-million for its third quarter ended June 30, up from $70.8-million in the third quarter last year. It said the increase was primarily driven by contributions from Sanity Group, which it acquired last year. The revenue result beat expectations of $95.7-million.

Adjusted EBITDAwas $13.4-million compared to $5.7-million last year and ahead of expectations of $6.9-million.

Net income was $105.5-million compared to a net loss of $6.3-million last year.

“The increase in net income in the current period was primarily attributable to higher non-cash fair value gains on preferred shares, as well as higher net revenue and gross margins compared to the prior year period,” it stated.

Cineplex Inc. CGX-T shares fell on Tuesday after the movie company reported mixed results for its second quarter.

Before markets opened on Tuesday, the company reported revenue of $383.7-million for the quarter ended June 30, up from $349.3-million in the second quarter of 2025. The company said it was the highest second-quarter revenue in its history.

The result was ahead of expectations of $378.7-million.

A profit of $7.8-million of 12 cents per share compared with a loss of $2.2-million or 3 cents a year earlier. The expectation was for 20 cents for the latest quarter, according to S&P Capital IQ.

Adjusted EBITDA of $81.8-million was up 10 per cent from $74.6-million last year and below expectations of $87.8-million.

The company says theatre attendance amounted to 12.7-million patrons, up from 11.6-million a year earlier.

Box office revenue per patron was $13.91, up from $13.68 in the same quarter last year, while concession revenue per patron was $10.26, up from $10.

TD analyst Cheryl Zhang said in a note that second-quarter EBITDA was only slightly below her estimate after excluding the impact of one-time costs.

“Strong attendance and record BPP [box office per patron] and CPP [concession per patron] helped drive record Q2 box office and concession sales,” she wrote. “Coupled with the record-breaking Spider-Man opening in Q3, visibility continues to improve on CGX narrowing its gap to 2019 box office levels and improving free cash flow and balance sheet.”

H&R REIT (HR-UN-T ) announced a deal to sell all of its assets to GO Residential REIT (GO-U-T) for around $6.7-billion and a consortium of other companies, including U.S. private equity firm Blackstone Inc.

H&R, one of Canada’s largest real estate investment trusts, says the deal includes a portfolio of 27 properties and nearly 10,300 suites across seven Sunbelt markets and New York, which will add to GO REIT’s 10 properties comprising 3,000-plus suites in the New York City area.

Along with Blackstone Real Estate, the consortium of co-purchasers includes Crestpoint Real Estate Investments, the Public Sector Pension Investment Board and a company controlled by family members of H&R chief executive Tom Hofstedter.

H&R says the transaction concludes its multi-year strategy to simplify its portfolio and focus on high-quality residential assets, while providing its unitholders with a 66.9 per cent ownership stake in GO REIT on a pro forma basis.

The deal is expected to close in the fourth quarter of this year, subject to unitholder, court and regulatory approvals.

H&R confirmed in June it had held talks with Blackstone regarding a potential sale of certain assets after a request by securities regulators following media reports.

In a note, TD analyst Sam Damiani said the transaction to privatize H&R for $12.01 per unit in cash and GO units “should see sufficient unitholder support in our view.”

He added: “The valuation at 82 per cent of consensus NAV reflects H&R’s complexity, historical valuation, and some tax friction among other things. Taking GO.u units at 49 per cent of consensus NAV may provide additional near term upside.”

Cargojet Inc. (CJT-T) shares were higher in Tuesday trading after the transportation company reported higher-than-expected second-quarter revenue.

After markets closed on Monday, the Mississauga-based company reported revenue of $275.8-million, up 15.8 per cent compared with $238.2-million for the same quarter last year. The result was ahead of expectations of $261.5-million, according to S&P Capital IQ estimates.

Net earnings were $7-million or 47 cents per share, compared with a net loss of $3.2-million or 21 cents in the second quarter of 2025. Adjusted earnings came in at $10-million or 67 cents per share compared with $15.7-million or $1.02 a year ago. The expectation was for EPS of 79 cents.

Adjusted EBITDAwas $87.3 million up from $80.2-million for the same quarter last year, and ahead of expectations of $80-million.

“While Domestic air cargo demand remains steady for Cargojet, the company is experiencing a revenue growth tailwind from scheduled charter service to LATAM and Caribbean countries that ramped early this year,” National Bank Financial analyst Cameron Doerksen wrote in a first-look note. “We are also more optimistic Cargojet’s flying for key ACMI [Aircraft, Crew, Maintenance, and Insurance] customer DHL will inflect more positively later in 2026 and into 2027.”

Added Mr. Doerksen. “With growth capex expected to be modest this year and next, we also see solid free cash flow for the company, which will support deleveraging as well as share buybacks ... .”

He also said the valuation remains inexpensive relative to the rest of his team’s transportation coverage universe.

Stifel analyst Daryl Young described the results as “positive” in a note. He said adjusted EBITDA and revenue was above his estimates. “Margins declined 202 basis points y/y to 31.7 per cent, however this was largely a function of the fuel pass-through (about 260 basis points impact),” he wrote. “FCF [free cash flow] of $56.2 million was solid (includes $1 million of proceeds from 21 Air), and leverage declined to 2.6x from 2.8x.”

He noted adjusted EPS was below consensus, “but this appears to reflect one-time items.”

AGT Food and Ingredients Inc. (AGTF-T) reported mixed results for its second quarter, which analysts described as both “noisy” but also showing “resiliency.”

After markets closed on Monday, the Regina-based company reported revenue of $634.2-million, up from $623.6-million a year ago. The company said the increase was driven by higher shipment volumes and a more favourable product mix in the packaged foods and ingredients segment, partly offset by lower global commodity pricing.

The result was ahead of expectations of $557.9-million, according to S&P Capital IQ estimates.

Adjusted net earnings of $8.2-million or 12 cents per share were up from $7.5-million or 18 cents a year ago but below expectations of 22 cents.

Adjusted EBITDA of $45.1-million was up from $44.5-million a year ago and ahead of expectations of $43.8-million.

National Bank Financial analysts Zachary Evershed and Nathan Po described it as a “noisy quarter,” but said the EBITDA beat “once again showcases resiliency.”

“Despite another quarter of significant accounting noise, we are pleased to see continued stability in Adj. EBITDA, achieved amid a tumultuous operating environment,” the analyst wrote in a first-look note.

TD analyst Derek Lessard said the second-quarter results “showed some improvement,” led by packaged foods and ingredients segment growth, margin expansion, and traction in better-for-you pasta.

“Sequentially stronger food security volumes were also encouraging, but it remains too early to call a sustained recovery. With geopolitical uncertainty still clouding the pace of normalization, we are still cautious on the near-term outlook,” he wrote.

CT REIT (CRT-UN-T) reported second-quarter results that were largely in line with expectations.

After markets closed on Monday, the real estate investment trust behind Canadian Tire properties reported property revenue of $156.7-million up nearly 5 per cent from $149.9-million a year earlier. The expectation was for revenue of $156.5-million, according to S&P Capital IQ estimates.

Net income of $126.2-million or 45 cents per unit compared with net income of $103-million or 37 cents last year.

Adjusted funds from operations of $78-million or 33 cents per unit, which was in line with consensus and compared with $75.5-million or 32 cents last year.

Draganfly Inc. (DPRO-CN) reported second-quarter results that were below expectations.

After markets closed on Monday, the Vancouver-based drone company reported revenue of $2.7-million for the quarter, up 26 per cent from $2.1-million a year ago. The expectation was for revenue of $3.2-million, according to S&P Capital IQ estimates.

Its loss of $12-million or 33 cents per share compared to a loss of $4.8-million or 61 cents a year ago. The expectation was for a loss of 17 cents.

Altius Minerals Corp. (ALS-T) reported mixed second-quarter results.

After markets closed on Monday, the St. John’s-based company reported attributable royalty revenue of $30-million compared to $12.7-million a year ago.

Adjusted net earnings of $7.6-million or 14 cents per share compared to net earnings of $1.6-million or 3 cents per share last year, the company stated. The result was below consensus of 20 cents.

Adjusted EBITDAof $23.3-million compared to $7.5-million a year ago and was ahead of expectations of $21.1-million.

TD analyst Craig Hutchison said the EBITDA beat was driven by lower costs and stronger joint-venture earnings.

“Near-term growth potential is improving with lithium project ramps, stronger potash pricing and production, and upcoming incremental base metal production,” he wrote, noting that royalty revenues of $30-million were pre-released in July.

National Bank Financial analyst Shane Nagle reiterated his “outperform” (buy) rating after the earnings “supported by Altius’s stable, long-life asset base, transition of the portfolio toward lower carbon-intensive commodities and the company’s ability to leverage its in-house expertise to gain long-term exposure to exploration success.”

He added: “Upcoming potential catalysts include the advancement of Saúva and Arthur Gold, updated technical studies at Kami, lithium ramp-up of lithium royalties and further growth opportunities within the renewable-energy portfolio.”

Mr. Nagle said he expects shares to trade in line with peers on Tuesday since attributable revenues were pre-released.

“We believe that the recently increased stake in renewable energy segment follows the previous acquisition of lithium royalties which has fundamentally shifted the underlying composition of the asset base, with 33 per cent of our NAV now attributable to lithium and 20 per cent to renewable energy,” he added. “As the outlook for U.S. electricity demand remains positively impacted by growth in AI and data centre electricity consumption, we expect further opportunities to allocate capital effectively in this sector over the coming months.”

Silvercorp Inc. (SVM-T) reported higher revenue and profit for the second quarter.

After markets closed on Monday, the Vancouver-based silver company reported revenue of US$138.7-million up 70 per cent from US$81.3-million last year. The result was ahead of expectations of US$133.6-million, according to S&P Capital IQ.

Adjusted earnings of US$53.9-million or 21 cents US per share up from US$21-million or 10 cents US a year earlier. The expectation was for 23 cents US per share.

Shares of AbCellera Biologics Inc. (ABCL-Q) soared Monday to their highest level in 3½ years after the Vancouver antibody developer published human trial results showing its treatment for hot flashes is more effective and has fewer side effects than existing treatments.

The results suggest the drug, called ABCL635, could be a best-in-class nonhormonal therapy for women in menopause or undergoing hormone-suppressing cancer treatments, and it could generate US$1-billion-plus in annual sales, AbCellera said.

Read the full story from the Globe’s Sean Silcoff here

Keel Infrastructure Corp. (KEEL-T) shares fell 12 per cent on Monday after the company reported second-quarter results that missed expectations.

Before markets opened on Monday, the New York-based, dual-listed digital infrastructure and energy company reported revenue of US$30-million, down 50 per cent year over year. The expectation was for revenue of US$33.4-million, according to S&P Capital IQ estimates.

“The decrease was largely due to a decline in average Bitcoin price and the shutdown of the Moses Lake cryptocurrency mining operations in the U.S. in April 2026,” the company stated.

Its loss from continuing operations of US$64-million or 11 cents US per share compared to income from continuing operations of US$13 million or 2 cents US a year earlier. The expectation was for a loss of 6 cents.

Adjusted EBITDA of negative US$24-million was down from US$7-million a year ago and wider than the expected loss of US$13.4-million.

Stingray Group Inc. (RAY-T) reported mixed results for its first quarter ended June 30.

Before markets opened on Monday, the Montreal-based music, media and technology company reported revenue of $158-million, up 65 per cent from $95.6-million for the same period a year ago. The result was ahead of expectations of $149.3-million, according to S&P Capital IQ estimates.

Adjusted EBITDA grew 49 per cent to $50.3-million, which was in line with expectations.

Adjusted net income was $27.9-million or 40 cents per share, up from $21.3-million or 31 cents last year and below expectations of 45 cents.

National Bank Financial analyst Adam Shine maintained his “outperform” (buy) and $20 target after the earnings report.

“TuneIn’s capabilities in programmatic advertising are being leveraged across RAY, with initial traction in FAST but benefits also to be infused in Retail Media and Radio,” he wrote. “While TuneIn is capitalizing on off-network opportunities to assist partners with selling their ad inventory, RAY is seeking to improve ad inventory utilization in FAST which now includes audio ads. Retail Media is expected to see low double-digit growth this year (could elevate subject to programmatic traction post-1H27 related to non-endemic ads). Radio in f2027 is expected to see a flattish top line with cost savings helping to mitigate margin decline.”

CIBC analyst Stephanie Price lowered her target on the stock to $19 from $20 and maintained her “outperformer” (buy) after the earnings.

:Stingray’s revenue growth continues to trend well as the company executes on the TuneIn strategy and organic growth drivers in FAST and retail media," she wrote. “While we saw some near-term margin dilution in FQ1 from TuneIn and a revenue mix shifting towards programmatic advertising, we expect margins to recover to the 35% range exiting the year. We remain positive on the growth story, with the TuneIn thesis intact, FAST growth tracking well, and the retail media programmatic opportunity on the horizon. We see upside to our estimates if Stingray can execute on cost synergies more quickly.”

Lucara Diamond Corp. (LUC-T) reported lower revenue and operating costs for its latest quarter.

Before markets opened on Monday, the Vancouver-based diamond mining company reported revenue of US$41-million, down from US$43.7-million last year.

“The decrease was primarily driven by lower carats sold through tender and a lower average dollar-per-carat from stones less than 10.8 carats,” the company stated.

Operating cost of US$23.76 per tonne processed was down US$26.76 from last year and below the company’s full-year guidance range of US$27.50 to US$31 per tonne processed.

“The decrease was primarily driven by an increase in tonnes processed during the quarter, partially offset by increased electricity and fuel costs,” it said.

The company also maintained its full-year outlook.

Upcoming small-cap earnings:

Aug. 12: Maple Leaf Foods Inc. (MFI-T), Western Forest Products Inc. (WEF-T), BSR REIT (HOM-U-T), AutoCanada Inc. (ACQ-T), North American Construction Group Ltd. (NOA-T), Ascend Wellness Holdings, Inc. (AAWH-U-CN), Sagicor Financial Company Ltd. (SFC-T), HLS Therapeutics Inc. (HLS-T), Diversified Royalty Corp. (DIV-T)

Aug. 13: Total Energy Services Inc. (TOT-T), Pollard Banknote Ltd. (PBL-T), Bird Construction Inc. (BDT-T), Automotive Properties REIT (APR-UN-T), True North Commercial REIT (TNT-UN-T), RFA Financial Inc. (RFA-T), Pro REIT (PRV-UN-T), Calian Group Ltd. (CGY-T), Boston Pizza Royalties Income Fund (BPF-UN-T), Quarterhill Inc. (QTRH-T), Auxly Cannabis Group Inc. (XLY-T)