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 53 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 33 per cent over the past 52 weeks and reached an intraday high of 3,069.71 on Aug. 14.
Small-cap summary:
Roots Corp. (ROOT-T) has agreed to a go-private transaction led by Marquee Brands for $4.10 per share.
After markets closed on Thursday, the Toronto-based retailer said the price is a 36-per-cent premium to its closing price on March 2, the last trading day before it announced a strategic review process, including a possible sale. The stock closed at $3.69 on Thursday, before the announcement.
As part of the transaction, Marquee Brands partnered with JM&A Design and Development Inc., an operating company led by Joe Mimran, known for founding clothing brands including Joe Fresh, and retail veteran Frank Rocchetti.
“Few brands are as deeply connected to Canada’s identity as Roots,” said Mr. Mimran in a release. “The opportunity is to build from that strength with renewed focus on product, merchandising and the customer experience, while remaining true to the character that has made Roots so distinctive.’
Under the terms of the deal, JM&A will acquire all issued and outstanding common shares of Roots. JM&A will oversee the design, development, manufacturing and distribution of men’s and women’s lifestyle apparel and assume responsibility for retail and e-commerce operations across Canada and the United States, including the Roots fleet of more than 100 North American stores, the company stated in a release.
“Under this structure, the brand will remain in Canada, guided by Canadian operating leadership who understand the Roots customer as well as the brand’s heritage and its enduring place in Canadian culture,” the release stated. “Marquee Brands will bring its proven brand management and marketing platform and best-in-class network to galvanize the brand’s global growth.”
Marquee Brands CEO Heath Golden says he sees significant global opportunities to extend Roots into new categories, markets and consumer segments.
The transaction is expected to close in the fourth quarter and is subject to court and regulatory approvals as well as other closing conditions, with a shareholder vote expected in October.
Roots went public in October, 2017 for $12 per share. The IPO was a secondary offering of Roots’ common shares by investment funds managed by Searchlight Capital Partners, L.P. and an entity indirectly controlled by Michael Budman and Don Green, who founded Roots in 1973.
In the past 52 weeks, Roots shares have traded between a high of $4.70 on June 12 and a low of $2.82 on Feb. 25.
TD analyst Brian Morrison described the news as “positive” in a note, adding that it’s unlikely there will be a competing bid.
He said about 69 per cent of shareholders with voting interest support the deal, including Searchlight Capital Partners, Kernwood Ltd. and all directors and senior officers.
“Given that Roots has undertaken what we view as a full auction process since early March, has the proposed transaction fully endorsed by its board of directors, has a fairness opinion, and material lock-up, we see a high probability of the transaction closing as proposed (including $4.10 per/share),” he wrote.
Added Mr. Morrison: “We view the C$4.10/share take-private offer from Marquee Brands and JM&A as a fair outcome for shareholders following a comprehensive strategic review process.”
Related (from March): Iconic retailer Roots could be for sale as it launches strategic review
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Questerre Energy Corp. (QEC-T) shares rose on Thursday after the energy technology company announced that Quebec’s Ministry of Economy, Innovation and Energy approved its application for a pilot project for carbon storage in the province.
“The approval of our pilot application is the first step towards demonstrating Quebec’s carbon storage potential,” stated Michael Binnion, CEO of Questerre. “We are optimistic that the combination of carbon storage to reduce emissions and local gas provides a made-in-Quebec solution to its goals of reducing greenhouse gas emissions and strengthening its energy security.”
He said the next steps are to work with the provincial and federal governments to fund the pilot project and with the Quebec government to validate its pre-existing rights to explore for carbon storage held before Bill 21 was enacted.
The company said Bill 21, An Act mainly to end petroleum exploration and production and the public financing of those activities, was enacted in April, 2022.
The company also reported receiving a notice from the Ministry regarding the contested regulatory requirements under Bill 21 to decommission its 12 suspended wells in the province within 36 months of July 30.
“The company will be reviewing with the Government of Quebec the issue of decommissioning wells in the context of the pilot and other relevant issues,” it stated, adding that under Bill 21, the government will fund up to 75 per cent of qualified expenditures.
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Tilray Brands Inc. (TLRY-T) announced it’s increasing its annual cultivation capacity by 30 per cent “to meet accelerating international medical cannabis demand.”
Before markets opened on Thursday, the cannabis company said it has increased annual cultivation capacity to approximately 275 metric tonnes, up from 210 metric tonnes, driven by expanded output at its Quebec facility in Canada and its EU-GMP-certified facility in Portugal.
TD analyst Derek Lessard described the announcement as “positive” in a note.
“We are encouraged by the capacity increase given that it is a signal of strong underlying market demand,” he wrote. “TLRY’s expected EU-GMP certification at its Quebec facility also reinforces our view that scaled LPs possess high-quality production infrastructure that is difficult to replicate (i.e. operators without EU-GMP certification face third-party processing hurdles to access international markets). We believe this positions companies like TLRY to capture an outsized share of incremental demand as international markets continue to expand.”
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Aurora Cannabis Inc. (ACB-T), which is currently battling a hostile takeover from Curaleaf Holdings Inc. (CURA-T), announced on Wednesday the acquisition of Internode Pharma Ltd., a licensed importer and wholesaler, and HAP Pharma Limited, a licensed pharmacy.
“We believe that this transaction will allow us to fully leverage our operational, commercial and regulatory expertise to expand our market share, while also supporting a consistent and reliable supply of high-quality medical cannabis products to UK patients,” said Aurora CEO Miguel Martin in a release.
Aurora said it paid the selling shareholders £2.1 million in cash, contingent on meeting certain post-closing conditions.
The announcement came hours after Aurora urged its shareholders to take no action on the Curaleaf bid, which it stated is “designed to pressure Aurora’s shareholders into a short-term decision for the benefit of Curaleaf shareholders” and buy its assets “at the lowest price possible.”
Mr. Martin added: “We are building this Company for the long term and will always do what is right for Aurora shareholders.”
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Canaccord Genuity Group Inc. (CF-T) announced on Tuesday that it’s buying the front office teams and client assets of EFG Harris Allday, a UK-based wealth management business focused on affluent clients predominantly in the Midlands. It said the team manages about £3.1 billion in client assets and generated annual revenue of £20.3 million in the year ended Dec. 31, 2025.
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Aimia Inc. (AIM-T) announced on Tuesday that it has applied to list its common shares on the London Stock Exchange’s AIM Market. If approved, Aimia said trading on AIM would start on or around Sept. 9.
“Consistent with our strategy and focus of enhancing shareholder value, we have explored becoming AIM quoted and believe that it will enhance our liquidity, attract new investors, and facilitate making investments in target companies,” said Rhys Summerton, Aimia’s executive chairman, in a release.
Aimia said it will keep its listings on the Toronto Stock Exchange and the Johannesburg Stock Exchange.
Aimia said it’s not doing a capital raise with its dual listing on AIM and its issued share capital will be unaffected by the AIM quotation. Aimia’s preferred shares will continue to trade only on the TSX, it added.
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OceanaGold Corp. (OGC-T), the Vancouver-based gold and copper producer, announced on Monday that it plans to acquire Australia’s Ausgold in a deal valued at A$776-million.
The deal represents a premium of 27.7 per cent to Ausgold’s previous close on Friday and gives OceanaGold ownership of the Katanning project in Western Australia. Ausgold shareholders will own about 6 per cent to 8 per cent of OceanaGold upon completion of the deal.
“This marks our first acquisition in Australia, and we are excited to build on the great work done by the Ausgold team to further optimize the development of the Katanning Gold Project for the benefit of both OceanaGold and Ausgold shareholders,” OceanaGold CEO Gerard Bond said.
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Endeavour Silver Corp. (EDR-T) announced late Sunday that operations at its Terronera mine in Jalisco, Mexico have been temporarily suspended due to what it described as an illegal blockade.
It said the blockade, which started on Aug. 12, is by members of the nearby Ejido community “regarding their concerns over road maintenance, assistance with medical services and communications, control and access to water supply and increased financial assistance.”
The company said in the release on Sunday that the blockade has “remained peaceful, orderly and respectful.”
There has been no update as of 10 a.m. Eastern on Aug. 20.
Endeavour is a mid-tier silver producer with three operating mines in Mexico and Peru.
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Algoma Steel Group Inc. (ASTL-T) said on Monday that future shipment volumes could be affected by an outage at its captive power plant that forced it to suspend operations at its electric arc furnace. The company said one turbine unit at its Lake Superior Power facility was taken offline after detecting an abnormal condition, while the remaining units continued operating.
The steelmaker expects the electric arc furnace outage to last no more than 21 days as it works with GE Vernova (GEV-N) to commission a contracted spare turbine at the site.
The company said alternative on-site power arrangements being evaluated with Ontario’s Independent Electricity System Operator could allow EAF operations to restart within about 10 days, if approved.
Algoma said finishing and shipping activities were continuing, with no significant impact expected on committed customer deliveries.
The company said it is assessing the outage’s duration and related operational and financial impacts and will provide an update once the assessment is complete and a restart timeline for EAF operations is established.
There has been no update as of 10 a.m. Eastern on Aug. 20.
Stifel analyst Ian Gillies described the issue as a transitory" issue in a note earlier in the week and said the U.S.-Canada trade talks would be more of a driver of the stock.
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Spin Master Corp. (TOY-T) announced on Monday that it’s buying Hapiko Inc., a Brooklyn-based company best known for its Stickerbox AI-powered machine that transforms spoken ideas into stickers.
“By pairing Hapiko’s platform with our track record of innovation, we can accelerate our vision for the future of play, giving kids access to fun, creative tools to design and bring their imaginations to life in new ways,” stated Spin Master CEO Christina Miller.
The financial terms weren’t disclosed in the release.
National Bank Financial analyst Adam Shine said in a note that Spin Master is paying $35-million upfront and up to $15-million in potential deferred consideration.
“The company will introduce the product and its plans at the L.A. Toy Fair this week, with the intention for Stickerbox to go mass in the fall of 2027,” he wrote.
“Although Stickerbox has sold out 13 times since debuting late last year, financials are muted and more detail will be provided by TOY with its 3Q reporting in November. Any near-term contribution is not anticipated to be large,” Mr. Shine added.
Canaccord analyst Luke Hannan said the device’s physical appearance and functionality have been likened to a “futuristic version of the Etch A Sketch,” which Spin Master acquired over a decade ago.
“In our view, there’s a viable (and lucrative) path available for Spin Master to leverage and scale the business moving forward, given its existing relationships with both retailers and licensees, not to mention the existing stable of IP within Spin Master that Stickerbox can utilize,” he wrote. “We look forward to Spin Master’s Q3/26 earnings results, where we expect further details regarding the amount of deferred consideration and Stickerbox’s current financial profile to be disclosed.”
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Upcoming small-cap earnings:
Aug. 26: Corby Spirit and Wine Ltd. (CSW-A-T), EQB Inc. (EQB-T)
Aug. 27: Kraken Robotics Inc. (PNG-X)
Aug. 28: Laurentian Bank (LB-T)
Sept. 9: D2L Inc. (DTOL-T), Transcontinental Inc. (TCL-A-T)
Sept. 10: Groupe Dynamite Inc. (GRDG-T)
Sept. 14: High Tide Inc. HITI-X
-with files from Reuters and The Canadian Press