A weekly look at some small-cap stocks making news – or about to.
Canada’s S&P/TSX Small Cap Index TXTW-I is up 22 per cent over the past 52 weeks. The index hit a record 915.92 on Wednesday. The Russell 2000 in the U.S. is up about 4 per cent over the past 52 weeks.
Small-cap spotlight
Aurora Cannabis Inc. ACB-T shares fell this week after the company said it expects “temporary declines” in some of its international markets in the current quarter.
Aurora told investors to expect continued strong global cannabis revenue in its current fiscal 2026 first quarter, driven by improved performance in Canadian medical and consumer sales. But it cautioned that global performance would be an offsetting factor.
“Taken together, global cannabis should be slightly lower compared to Q4 2025 and is expected to improve in later quarters due to increased distribution and further innovation,” it said in its earnings release.
In a call with analysts, CEO Miguel Martin said regulatory changes in Poland affected the ability of its patients to access prescriptions “and generally the size of the market,” adding that he expects that to be temporary. “We are excited about the long-term aspects of Poland coming back.“
He also said that Germany “continues to deliver at a high level, it is a growth market for us, not only growing overall, but also from a market share standpoint. And the U.K., which is the other key market of size in that part of the world is also growing.”
Before markets opened on Wednesday, the Edmonton-based cannabis producer reported revenue of $90.5-million for its 2025 fourth quarter ended March 31, compared with $67.4-million in the prior-year period. It said the increase was mainly due to 48-per-cent growth in our global medical cannabis business and 32-per-cent growth in its plant propagation business, slightly offset by lower quarterly revenue in our consumer cannabis business.
Its net loss narrowed to $17.2-million from $20.3-million in the year-ago quarter.
Canaccord Genuity analyst Matt Bottomley, who has a “buy” and $12.50 target on the stock, said the results were generally in-line with his expectations “amid what we believe was a transformational year for the company as it continued to refocus efforts on international medical markets, which doubled [year over year] [fiscal] 2024 levels.”
Aurora also issued two releases after the earnings report, citing “misinformation” posted on the news website Investing.com related to MedLeaf Therapeutics and MediPharm.
“Aurora has not entered into any such agreements, has had no discussions with MedLeaf Therapeutics or MediPharm GmbH with respect to any business combination transaction or strategic partnership, and has not made any statements or filed any information pertaining to any such transactions,” it stated, adding that the “erroneous articles posted on Investing.com state that they were generated ‘with the support of AI and reviewed by an editor.”
Aurora said it’s “launching an investigation into the genesis of these articles,” adding that it’s “not in the possession of material non-public information.”
Both articles were removed from the Investing.com website by midday Thursday.
In an e-mail statement to the Globe, an Investing.com spokesperson said the articles were published “due to a technical issue and were immediately removed upon receiving notice.”
In the past 52 weeks, the stock has traded between a high of $9.90 and a low of $4.95.
Small-cap summary
Other small caps making news this week:
Kraken Robotics Inc. PNG-X shares fell this week after the St. John’s-based company announced a $100-million bought deal financing.
After markets closed on Tuesday, Kraken said it has an agreement with Desjardins Capital Markets, as sole lead underwriter and bookrunner on behalf of a syndicate of underwriters, to buy 37.6 million common shares for $2.66 each.
Kraken said it expects the net proceeds will be used to support its “transition into a scalable global prime contractor,” including boosting its ability to consider larger acquisitions, particularly in the U.S. and European Union and to demonstrate a stronger balance sheet when bidding for larger governmental and commercial contracts.
In the past 52 weeks, the stock has traded between a high of $3.07 and a low of 92 cents.
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Diversified Royalty Corp. DIV-T shares hit their highest level since early 2023 this week after the company announced a 10-per-cent annual dividend increase. The company also announced the addition of its ninth royalty stream, Cheba Hut, a U.S.-based cannabis-themed sandwich franchise, for US$36-million.
After markets closed on Tuesday, Diversified said it was able to fund the transaction without raising equity. Cheba Hut has 77 sub sandwich restaurants in theU.S.
Canaccord Genuity analyst Matthew Lee increased his target to $4.75 from $4.50 after the news, and maintained his “buy” rating.
“In our view, this transaction fits well into management’s strategy of buying into growing brands and elevates the company’s status to the U.S. franchisor market, which will be critical for sourcing further deals,” he wrote in a June 18 note.
CIBC analyst Ty Collin increased his target to $3.20 from $3.10 and maintained his “neutral” (hold) rating after the announcement.
“We view positively DIV’s acquisition of Cheba Hut’s royalty stream, which expands DIV’s portfolio in the larger U.S. market, but on familiar terrain,” he wrote in a June 18 note. “The acquisition increases distributable cash flow per share by [about] 4 per cent while keeping leverage at a manageable level and facilitating an increase to the dividend.”
He noted management has been focusing much of its active search efforts in the U.S. market, “where lower familiarity with DIV and the royalty model in general have been hurdles to getting deals done. We believe each successful deal should help DIV gain traction there.”
The company also announced an annual dividend increase to 27.5 cents from 25 cents, effective July 1.
Mr. Lee of Canaccord said the dividend increase reflects “the firm’s confidence in its ability to balance growth and shareholder capital returns.”
In the past 52 weeks, the stock has traded between a high of $3.14 and a low of $2.50.
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SIR Royalty Income Fund SRV-UN-T units hit a 52-week high this week after the company reported higher revenue and adjusted profit for its third quarter ended May 4.
After markets closed on Tuesday, the trust behind restaurant brands such as Jack Astor’s Bar and Grill and Scaddabush Italian Kitchen & Bar, said revenue from corporate restaurant operations increased by 4.5 per cent to $64.8-million, compared to $62-million for its third quarter of 2024. The increase reflects the impact of the five new restaurants opened during and subsequent to the third quarter of 2024, the trust stated. Same-store sales declined by 1.4 per cent.
Adjusted net earnings of $2.5-million compared to $657,000 a year earlier. It said the increase was due mainly to a $2.9-million increase in earnings from corporate restaurant operations in the third quarter of 2025 compared to a year earlier.
In the past 52 weeks, the units have traded between a high of $13.90 and a low of $11.11.
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Groupe Dynamite Inc. GRDG-T shares hit their highest level since going public last fall after the Montreal-based retailer reported a 20-per-cent jump in revenue and 13-per-cent growth in same-store sales for its first quarter ended May 3 – results that beat expectations.
Before markets opened on Tuesday, the retailer behind the Dynamite and Garage women’s apparel brands, reported revenue of $226.7-million compared to $188.9-million in the year-ago quarter. The expectation was for revenue of $209.4-million.
Adjusted EBITDA increased by 19.8 per cent to $66.8-million.
Net earnings came in at $27.3-million or 24 cents per share compared to $23.9-million or 22 cents a year earlier. The expectation was for 22 cents.
Cannacord Genuity analyst Luke Hannan increased his target to $33 from $33 after the earnings report, and maintained his “buy” rating.
“We believe GRGD’s Q1/F25 performance should go a long way to building credibility with investors and demonstrating the business is equipped to handle a macro backdrop featuring heightened trade uncertainty,” he wrote in a June 17 note. “The company’s speed to market and capabilities when it comes to managing assortment architecture should mitigate the shock of any potential future increases in tariffs; further, the average price point of its offering allows its customers to enjoy ‘affordable indulgences’ even during periods of softer consumer sentiment.”
National Bank Financial analyst Vishal Shreedhar increased his target to $25 from $23 and kept his “outperform” (buy) rating.
“We now view GRGD to be a top pick in our discretionary universe along with Dollarama,” Mr. Shreedhar said in a June 17 note. “Investment in GRGD is differentiated by strong financial metrics, with an EBITDA margin and ROIC [return on invested capital] that is amongst the highest in our apparel group.”
In the past 52 weeks, the stock has traded between a high of $23.36 and a low of $10.35.
Read more on Groupe Dynamite’s recent earnings report from the Globe’s Susan Krashinsky Robertson here
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Reitmans (Canada) Ltd. RET-X reported lower revenue and same-store sales for its first quarter ended May 4 and a wider loss compared to the same quarter last year.
After markets closed on Tuesday, the retailer reported revenue fell 4 per cent to $158.9-million, “primarily due to severe winter weather in the month of February and economic uncertainty.” It said comparable same-store sales fell 4.5 per cent year over year.
Its net loss was $10-million or 20 cents per share compared to a loss of $1.5-million or 3 cents a year earlier.
“Our disappointing financial results underscore the importance of implementing the five-year strategic plan we announced in April,” CEO Andrea Limbardi stated in a release. “This strategy is designed to drive long-term profitable growth and ultimately make our business more resilient.”
In the past 52 weeks, the stock has traded between a high of $2.96 and a low of $1.80.
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High Tide Inc. HITI-X reported higher revenue but swung to a loss for its second quarter ended April 30.
After markets closed on Monday, the Calgary-based cannabis company reported revenue of $137.8-million for the quarter compared to $124.3-million for the same period last year. The result was below expectations of $138.5-million.
Adjusted EBITDA was $8.1-million, which High Tide said represented the 21st consecutive positive quarter and compared to $10-million during the previous year.
Its net loss of $2.8-million or 4 cents per share compared to net income of $171,000 or nil per share a year ago. The expectation was for a loss of 3 cents per share in the most recent quarter.
Ventum Capital Markets analyst Andrew Semple maintained his “buy” rating and $8.50 target after the earnings report.
High Tide remains our highest conviction idea in Canadian cannabis,” he wrote in a June 18 note. “It is one of the few cannabis companies in Canada to sustainably grow EBITDA, generate sustainable positive FCF [free cash flow], and maintain clear growth drivers ahead.“
Mr. Semple added there’s potential for additional upside to his forecast, “as High Tide could potentially utilize its growing cash position to support accelerated growth and make acquisitions that would be accretive to its current valuation.”
In the past 52 weeks, the stock has traded between a high of $5.08 and a low of $2.30.
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Lightspeed Commerce Inc. LSPD-T announced this week that it reached an agreement in principle to resolve a proposed class action proceeding filed in Quebec. The amount of the settlement is about $8.09 million, the company stated.
After markets closed on Monday, the Montreal-based point-of-sale software provider said the settlement follows the recent dismissal of a parallel U.S. securities class action against the company, “where the court found the plaintiff’s allegations to have no adequate legal basis.”
The company said the settlement remains subject to the approval of the Superior Court of Quebec and “purports to definitely settle and discharge all claims put forward on behalf of the proposed class members against the company and the other defendants.”
It also said that the settlement states that the company and the other settling defendants “admit no liability and deny all allegations of wrongdoing whatsoever.”
CEO and founder Dax Dasilva stated that resolving the class action can help Lightspeed focus on its transformation, “concentrating on the markets where we have a proven right to win–and delivering exceptional experiences to our customers worldwide.”
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Ballard Power Systems BLDP-T announced this week that its president and CEO Randy MacEwen will step down on July 7 and will be replaced by Marty Neese.
Mr. Neese has served on Ballard’s board for the past 10 years and has been CEO of Verdagy, an electrolysis and green hydrogen company, for the past four years. Earlier in his career, he served as the chief operating officer of SunPower and Flex, the company stated.
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Sprott Inc. SII-T, on behalf of the Sprott Physical Uranium Trust U-UN-T announced a US$100-million bought-deal financing this week.
Before markets opened on Monday, the company said it had an agreement with Canaccord Genuity Corp to buy 5.8 million units of the trust for US$17.25 per unit. It said the net proceeds will be used by the trust to acquire physical uranium in the form of uranium oxide in concentrates and uranium hexaflouride and related fees and expenses.
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Aimia Inc. AIM-T announced the resolution of a tax dispute with the Canada Revenue Agency (CRA) and anticipates a refund of approximately $27-million. The tax dispute relates to a 2013 income tax audit of Aimia’s former subsidiary, Aeroplan Inc., the company said in a release before markets opened on Monday.
Aimia said it expects to use the proceeds from the CRA refund to support its 2025-2026 normal course issuer bid and for general working capital purposes.
Following the sale of Aeroplan Inc. to Air Canada in January, 2019, Aimia said it agreed to indemnify Air Canada for pre-closing income tax liabilities and put $100-million from the sale proceeds into an escrow account. In 2019, Aimia said it remitted $32.9-million from the escrow account to the CRA and Revenu Québec after receiving a notice of reassessment for the 2013 tax audit. In July, 2020, the balance of the escrow account, $67.1-million, was released to Aimia.
Now that the CRA dispute is resolved, Aimia said it will seek recourse from Revenu Québec for the remaining $6-million portion of the 2013 tax audit. “Aimia anticipates that a similar resolution is likely,” it stated.
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Upcoming small-cap earnings:
June 24: Blackberry Ltd. BB-T
June 25: AGF Management Ltd. AGF-B-T
June 26: Corus Entertainment Inc. CJR-B-T
July 29: First National Financial Corp. FN-T
A weekly look at some small-cap stocks making news – or about to. Read More
