We are always fishing for new investing ideas, and one source of ideas is conferences. A virtual conference we have attended several times now is Investor Summit. We have found that they have do a good job of curating an interesting group of companies to look into, or at least to learn about what is happening in various industries.

They just held a virtual Summit this March and we have put together an overview of the companies that attended, including the one we now own after humming and hawing for a year.

If you would like to watch the presentations, recordings are available by requesting access: https://investorsummitgroup.com/

Let’s get into it!

Disclaimer - The content contained in this blog represents the opinions of contributors. You should assume contributors have positions in the securities discussed, whether long, short, or somewhere in between, and that this creates an obvious bias and conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance whatsoever and are subject to certain risks, uncertain risks, and other factors. Information might also be completely out of date and may or may not be updated. In addition, no one guarantees the accuracy of any information provided and none of the information should be construed as investment advice or any other kind of advice under any circumstance, and the blog is a blog and not a registered investment advisor or broker in any jurisdiction. Frankly, no information here should be used for any purpose, except for entertainment (and we hope you enjoy).

Amaze Holdings, Inc. (NYSE: AMZE)

Amaze is an end-to-end, creator-powered commerce platform that helps creators and small brands design products, run storefronts, process payments, and fulfill/deliver goods and digital offerings.

The real story is the corporate transformation from Fresh Vine Wine into Amaze via the Amaze Software transaction and rebrand (March 2025), shifting the story from consumer alcohol to creator-commerce software. More recently, they completed an ATM and an equity line to raise capital and negotiate paydowns/settlements across payables and debt (including convertible-related clean-up).

No position. It is an interesting turnaround and might be worth digging into for those with more experience in this area.

CanCambria Energy Corp. (TSXV: CCEC)

One secondary affect of the Ukraine/Russia war is a renewed interest in energy independence by governments, including Hungary. This region was drilled decades ago and has received little interest since until recently. CanCambria is an early-stage upstream company focused on oil and gas exploration/appraisal in Hungary, centered on the Kiskunhalas concession and its tight-gas potential.

Recently, CanCambria has completed their permitting/development readiness via submission of a Technical Operating Plan and subsequently announced approval of that plan for the concession area. The Company is actively drilling and seeking a joint venture.

No position. We are watching with key events being drilling results and confirming a JV partner. This is one of the few investing opportunities available for small cap European natural gas exposure.

Cerrado Gold Inc. (TSXV: CERT)

Cerrado is a precious-metals producer with its cash-flow being driven by their Minera Don Nicolas (MDN) gold operation in Santa Cruz, Argentina, funding the development of two new assets. In addition to MDN, Cerrado controls the Lagoa Salgada VMS project in Portugal (via the Ascendant combination) and has been advancing the Mont Sorcier high-grade direct-reduction iron project in Quebec as a longer-dated optionality lever. The investment case typically balances near-term operational delivery at MDN with permitting/financing and study milestones across the development portfolio.

Cerrado is a junior that is really three separate projects, but only getting credit for a bit less than one of them. They are using free cash flow and creative financing to fully support the development of their two other projects while re-evaluating their cash flow engine.

New hold. We are long. See our next article coming this weekend!

Comstock Holding Companies, Inc. (NASDAQ: CHCI)

Comstock is an asset-light real estate development and management company focused on mixed-use and transit-oriented properties primarily in the Washington, D.C. metro area. It generates revenue largely from real estate services—asset management, property management, leasing, and related fees—rather than taking large balance-sheet development risk, and it has recently expanded into an ancillary parking services business branded ParkX.

This company is neat. Originally it was a home builder, but converted to a development and property management company beginning around 2018. At first it was managing properties of the key founders that are held in a separate private entity, it is now growing into 3^rd party management and has built over $2 billion in projects.

No position. We are watching and learning more about it.

Else Nutrition Holdings Inc. (TSX: BABY)

Else Nutrition sells plant-based nutrition products targeted at babies/toddlers/kids, with a focus on “clean label” positioning (dairy- and soy-free) and a mix of powders and ready-to-drink formats. Commercial traction is tied to retail distribution and repeat consumption in core kid/toddler nutrition categories; the company also positions itself around broader regulatory and scientific developments relevant to infant/toddler nutrition standards. End markets are primarily parents/caregivers shopping in retail and e-commerce channels.

Else has is working on a company-wide operational transformation (cost reduction, supply-chain and manufacturing efficiency, and tighter marketing prioritization), highlighted expanded U.S. retail placement for kids ready-to-drink shakes, and announced a CFO appointment and plans for a Canadian market relaunch in 2026. It has also pointed to FDA-related regulatory progress on infant formula protein standards as a potential tailwind.

No position.

Forum Energy Technologies, Inc. (NYSE: FET)

This was a particularly annoying company to get an update on, because we looked at them about a year ago and did not purchase (our fault). Congratulations to shareholders on their almost 200% return over the past year.

Forum Energy Technologies is an oilfield products and services company serving upstream operators and service companies, with offerings spanning drilling/completions equipment and consumables and production/downhole/artificial-lift-related products. It reports in two main segments: Drilling and Completions (including products for drilling, subsea/coiled tubing/wireline/stimulation-related markets) and Artificial Lift and Downhole (production and downhole-focused equipment). Revenue is levered to global E&P activity levels, service intensity, and the cycle in completion/production spending.

No position, though we continue to evaluate.

HeartSciences Inc. (NASDAQ: HSCS)

HeartSciences is a med-tech company applying AI to ECGs/EKGs, built around its MyoVista® wavECG™ (a resting 12-lead ECG device intended to integrate conventional ECG with additional AI-derived diagnostic information) and a device-agnostic, cloud-based software platform for hosting AI-ECG algorithms (MyoVista Insights Cloud Platform). The goal is to improve frontline cardiac screening with monetization expected to come from device placements plus software/algorithm usage over time.

Recent milestones have been regulatory-path progress and balance-sheet actions typical for a pre-revenue med-tech. HeartSciences reported fiscal 2025 updates including capital raised through its Reg A+ offering and debt conversion, and then announced its FDA submission for the MyoVista wavECG device.

No position.

Monumental Energy Corp. (TSXV:MNRG)

No historical summary. Effectively start up.

Another neat company resulting from the realization that the world still needs energy. New Zealand recently reversed its effective moratorium on energy development as they realized they might not want to be totally dependent on energy imports and Monumental is aiming to be part of the restart. It is a small-cap resource company with exposure to New Zealand oil & gas workovers/royalties via agreements and also has a lithium project in Chile.

Recently the Company announced initial commercial production at Waihapa H1 and subsequently reported initial flush production and stabilization.

No position. Will be interesting to follow.

Nano-X Imaging Ltd. (NASDAQ: NNOX)

Nanox is a medical imaging company commercializing the Nanox.ARC multi-source digital tomosynthesis X-ray system alongside a cloud software stack and adjacent service lines. Revenue has included teleradiology services, sale/deployment of imaging systems / OEM services, and AI solutions, reflecting a hybrid of hardware, services, and software. The strategic pitch is lowering the total cost of advanced imaging access and scaling deployments via channel partners and service infrastructure.

No position.

Nautilus Biotechnology, Inc. (NASDAQ: NAUT)

Nautilus is a pre-commercial life-sciences tools company developing a single-molecule proteome analysis platform.

No position.

NeoVolta Inc. (NASDAQ: NEOV)

NeoVolta sells battery energy storage systems (BESS) and related power electronics for residential (and increasingly commercial) energy resilience, typically paired with solar and installed via dealers/installers. The company generates revenue from product sales through its channel partners, with product expansion into inverters and larger-format storage aimed at broadening addressable demand beyond core residential backup.

The core thesis is the U.S. energy grid is aging and at a breaking point. The Big Beautiful Bill gave them the opportunity to set up a manufacturing JV with foreign partners. PotisEdge is a leading provider of batteries and LONGi is a major supplier of panels, removing technology risk. The goal is to build a U.S. made energy storage system with tailwinds from grid challenges, data center build outs, etc. It will be highly automated and online in 2027. Neovolta is the only capital provider (and the bill requires it to be a U.S. capital provider to access the tax equity benefits). $7MM funded in January, another $8MM in April, and final phase is $10MM, and they expect to use some equipment financing to support this.

No position. We are watching with the start up being a potential near-term inflection point.

Peraso Inc. (NASDAQCM: PRSO)

Peraso is a fabless semiconductor company focused on mmWave wireless devices and antenna modules, plus non-recurring engineering services and IP licensing. Its products target use cases such as fixed wireless access, tactical communications, and other high-bandwidth/low-latency links where mmWave performance matters, with revenue typically dependent on customer design wins and deployment cycles.

The revenue decline from 2024 to 2025 was due to the transition from their legacy memory business to mmWave devices. Fixed wireless is viewed as mature, but they are now working on defense (secure communication) and robo taxi (high volume data) opportunities while aiming to be breakeven in the near future.

No position. We are watching and flag as a potential beneficiary of increased defense spending.

Zeo Energy Corp. (NASDAQ: ZEO)

Zeo is a vertically integrated provider of residential solar solutions, spanning sales, design, procurement, installation, and maintenance, and it also offers adjacent energy-efficiency equipment and roofing services (with revenue commonly disaggregated into solar installations and roofing installations). The company is concentrated in regional U.S. markets and is exposed to consumer financing/credit availability, installation throughput, and unit economics (sales efficiency, install costs, and cancellations).

Recently, it completed the acquisition of Heliogen in August 2025, positioning the combined platform to expand beyond residential into longer-duration generation/storage and commercial/industrial opportunities.

No position.

Here is the latest from Canadian Value Investors!

• NFI Group TSX:NFI Turnaround Continues

• Goodbye GameHost TSX:GH - Being Acquired

Disclaimer - The content contained in this blog represents the opinions of contributors. You should assume contributors have positions in the securities discussed, whether long, short, or somewhere in between, and that this creates an obvious bias and conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance whatsoever and are subject to certain risks, uncertain risks, and other factors. Information might also be completely out of date and may or may not be updated. In addition, no one guarantees the accuracy of any information provided and none of the information should be construed as investment advice or any other kind of advice under any circumstance, and the blog is a blog and not a registered investment advisor or broker in any jurisdiction. Frankly, no information here should be used for any purpose, except for entertainment (and we hope you enjoy).

NFI Group TSX:NFI Turnaround Continues

The turnaround of our favourite bus company continues. They released their Q4 numbers and we were satisfied. Revenue increased ~22% year-over-year and importantly free cash flow has returned.

We asked in February of last year, is this our bus? It has been a great ride so far. See previous coverage here.: https://www.canadianvalueinvestors.com/t/nfi

The decline last fall primarily driven by the battery recall issue turned out to be a good buying opportunity. The Company ultimately reversed most of the charge as expected in Q4:

The Battery Settlement impacted both NFI’s income statement and its balance sheet, with NFI recording other income of $166 million representing the total settlement amount. In aggregate, NFI has recorded an approximate 72% recovery against the original $229 million liability provision recorded in the third quarter of 2025.

COVID’s long tail

While we are happy to see things appear to be improving, we want to pause an acknowledge how long the tail of COVID has been. North American and European industry-wide bus deliveries have still not returned to pre-pandemic levels and supply chains remain fragile. NFI’s North American transit bus business remains robust, with only NFI and Gillig being the two key companies left.

We remain long but cautious. Although they appear to be addressing the seat issue and battery problem, will there be another major hiccup? The biggest risk right now is that they are not able to catch up and reduce their backlog, which we view as actually too high. Orders made today by a transit authority can take two years to fill. This is an environment that encourages new competition and new approaches to tendering by transit authorities.

Management guidance seems conservative (and no surprise after how challenging things have been), and we look forward to seeing how 2026 unfolds.

Goodbye GameHost TSX:GH

Disclosure: Exiting.

Today we say goodbye to GameHost. Earlier this week they agreed to be bought out, and while it is still subject to shareholder approval, it appears like it will go through given insider support, and the buyer appears to be the kind a regulator will approve.

We first covered GameHost in January 2025 and, including dividends, it has provided us a ~25% IRR. While we view this as a success, we also just really enjoyed writing about them.

As we said back in our initial article,

What do you get when you combine a conservative management team and a few casino licenses in a growing jurisdiction that limits them? It turns out you get pretty good returns on capital and trading today for ~10x FCF. Why gamble when you can bet on the house?

It turns out you get a lot of shareholder value creation. Dividends helped, with ~$0.80/share since our initial purchase. We have included the press release as well as the fun side story of the real estate transaction the buyer is doing with VICI Properties Inc.

Interesting what you can do with under-levered real estate with stable revenue.

Overall, we view this as a good outcome for shareholders and congratulate management. Now, it is time to redeploy our capital. Perhaps we will trade in our chips for some gold…?

Gamehost Inc. and Pure Casino Entertainment LP have entered into a definitive arrangement agreement pursuant to which Pure will, indirectly through a subsidiary, acquire all of the issued and outstanding common shares of Gamehost for $13.65 in cash per share. Pure operates casinos in Alberta and is privately held by Indigenous Gaming Partners Inc. (IGP), a gaming partnership between five Nova Scotia first nations and Sonco Gaming Inc.

The cash consideration of $13.65 per Gamehost share offered to the Gamehost shareholders pursuant to the transaction represents a premium of approximately 16 per cent to Gamehost’s closing price of $11.75 per Gamehost share on the Toronto Stock Exchange on March 27, 2026, being the last trading day prior to the announcement of the transaction, and a premium of approximately 17 per cent to Gamehost’s 20-day volume weighted average price on the TSX of $11.67 per Gamehost share as of the close of markets on March 27, 2026.

The transaction is the result of extensive and thorough arm’s-length negotiations between Gamehost and Pure, and their respective advisers, and brings together two of Alberta’s leading gaming and hospitality companies.

Darcy Will, president and chief executive officer of Gamehost, commented: “For over two decades, I have had the pleasure of working with dedicated team members to create an entertainment and hospitality company that provides extraordinary experiences for our guests, employees and community. I am excited to pass on this legacy to Pure, a proven leader in the Alberta gaming industry. I am confident that they will continue to provide a high-quality guest experience and exceptional environment for our employees.”

In a separate transaction, Pure has entered into an agreement with VICI Properties Inc. for VICI to acquire at the closing of the transaction certain Gamehost real properties from Pure and amend its triple net master lease agreement with Pure to cover those properties.

Transaction details

The transaction will be implemented by way of a plan of arrangement under the Business Corporations Act (Alberta) and is expected to close in mid-2026, subject to customary closing conditions, including the receipt of required shareholder approvals, the approval of the Court of King’s Bench of Alberta, and regulatory approval under applicable gaming and competition laws. The transaction is not subject to any financing condition.

The transaction constitutes a business combination for the purposes of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, which requires, among other things, the approval of the transaction by a majority of the votes cast by Gamehost shareholders other than the Gamehost shareholders whose votes are required to be excluded for the purposes of majority of the minority approval as required under MI 61-101. As such, the required shareholder approvals for the transaction consist of: (i) at least two-thirds of the votes cast by Gamehost shareholders at a special meeting of shareholders of the corporation; and (ii) at least a majority of the votes cast after excluding the votes cast by those persons whose votes must be excluded in accordance with MI 61-101, at such meeting.

All directors and officers of Gamehost, and the largest shareholder of Gamehost, and their associates and affiliates, who collectively own approximately 41.3 per cent of the issued and outstanding Gamehost shares, have entered into voting and support agreements pursuant to which they have agreed to vote all the securities of Gamehost they own or control in favour of the transaction. To the knowledge of Gamehost and its directors and senior officers, after reasonable inquiry, for the purposes of MI 61-101, it is expected that the votes in respect of an aggregate of 2,688,820 Gamehost shares (representing approximately 13.0 per cent of the issued and outstanding Gamehost shares) beneficially owned, or over which control or direction is exercised, directly or indirectly, by certain directors and officers will be excluded in determining whether majority of the minority approval for the purposes of MI 61-101 is obtained.

The arrangement agreement contains customary non-solicitation provisions on the part of the corporation, subject to the customary fiduciary out provisions, as well as customary right to match provisions in favour of Pure. A termination fee of $12-million would be payable by the corporation to Pure in certain circumstances, including in the context of a superior proposal supported by the board of directors of Gamehost. A purchaser expense reimbursement fee of $5-million would also be payable by Gamehost to Pure in certain circumstances, including in the event that Gamehost does not receive the required shareholder approvals. The corporation would also be entitled to a reverse termination fee of $12-million if the transaction is not completed in certain circumstances.

The fun side story. Note market cap and EV of Gamehost is ~$280MM and ~$300MM. Isn’t that neat…

NEW YORK — VICI Properties Inc. (NYSE: VICI) (“VICI Properties”, “VICI” or the “Company”), an experiential real estate investment trust, today announced the CAD$200.6 million / USD$144.4 million pending acquisition (the “Real Estate Transaction”) of the real estate assets of Deerfoot Inn & Casino, Great Northern Casino and two limited-service hotels that are adjacent to the Great Northern Casino (collectively, the “Portfolio”) located in Alberta, Canada, in connection with Pure Casino Entertainment Limited Partnership’s (“PURE”) pending take-private acquisition of Gamehost Inc. (GH.TO) (“Gamehost”).

Simultaneous with the closing of the Real Estate Transaction, the Portfolio will be added to the existing triple-net master lease agreement between VICI Properties and PURE (the “PURE Master Lease”) and annual rent will increase by CAD$16.1 million (USD$11.6 million) representing an acquisition capitalization rate of 8.0%. The Portfolio rent will escalate at 1.0% on the first February 1 following a full 12 months post-closing (in line with the timing of the PURE Master Lease escalation), and escalation will conform to the PURE Master Lease thereafter at the greater of 1.5% or the change in Canadian CPI (capped at 2.5%). Additionally, the term of the PURE Master Lease will be extended such that, upon closing of the Real Estate Transaction, the PURE Master Lease will have a full 25-year initial base lease term, with four 5-year tenant renewal options. The tenants’ obligations under the PURE Master Lease will continue to be guaranteed by Indigenous Gaming Partners, Inc. (“IGP”).

John Payne, President and COO of VICI Properties, said, “We are very excited to deepen and expand our presence in the Canadian gaming market, a very steady and stable gaming jurisdiction, alongside an existing partner. Having worked alongside IGP and PURE, we have seen firsthand their ability to operate and grow a best-in-class gaming platform, and we are proud to continue supporting that growth as their real estate partner and capital provider. This is exactly the kind of transaction that reflects VICI’s value proposition, helping best-in-class operators execute on their growth strategies, and we hope to continue growing our relationship with IGP and PURE for years to come.”

Here is the latest from Canadian Value Investors! Some big news for a few companies we follow. Let’s get into it.

• ALUULA (TSXV:AUUA) Unlocked, Capital Raise Complete

• Cannara Biotech Inc. (TSX:LOVE) Moving on Up

• Goldmoney (TSX:XAU) keeps minting more gold

Disclosure: We have long positions in all companies profiled.

Disclaimer - The content contained in this blog represents the opinions of contributors. You should assume contributors have positions in the securities discussed, whether long, short, or somewhere in between, and that this creates an obvious bias and conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance whatsoever and are subject to certain risks, uncertain risks, and other factors. Information might also be completely out of date and may or may not be updated. In addition, no one guarantees the accuracy of any information provided and none of the information should be construed as investment advice or any other kind of advice under any circumstance, and the blog is a blog and not a registered investment advisor or broker in any jurisdiction. Frankly, no information here should be used for any purpose, except for entertainment (and we hope you enjoy).

ALUULA (TSXV:AUUA) Unlocked, Capital Raise Complete

We first posted about ALUULA last October and have been watching them for longer. The Company develops and manufactures advanced soft composite materials made out of Ultra-High Molecular Weight Polyethylene (UHMWPE).

As we said last October:

To be clear, this is quite different than most of our other investments, though if you look at our post history you will quickly come to the conclusion that our portfolio is an eclectic group (things like canned vegetables, gold storage, real estate, valves, and fancy moving movie theatre chairs).

…

Capex & financing: We view that they absolutely need a new facility + working capital and capital needs are not truly known at this point (we expect clarity early next year).

They just completed a capital raise that addresses our number one issue. They completed their private placement and were able to upsize due to interest. Proceeds are being used for the capex build out as well as to finally clear off a ~$1MM related party loan. With 4.3MM shares issued it creates dilution, but the capital was absolutely required. The issue price and size were actually better (for the company and existing shareholders) than we expected. Overall, it is a reasonable outcome given it was absolutely necessary. As they continue to grow, we expect they will become bankable by conventional lenders soon.

We remain long and have used this as an opportunity to increase our position. We stress that this is high risk and we view this as a venture-like holding in our portfolio (in fact, the only one).

With a 75% increase in revenue last quarter year-over-year, we look forward to seeing what they can do now that they actually have some capital.

Victoria, British Columbia – February 24, 2026 - ALUULA Composites Inc. (TSXV: AUUA | OTCQB: AUUAF) (the “Company” or “ALUULA”) is pleased to announce that it has completed its previously announced “best efforts” brokered private placement of 4,273,475 units of the Company (the “Units“) at a price of C$3.30 per Unit (the “Offering Price”) for aggregate gross proceeds of C$14,102,467.50 (the “Offering“), which includes the exercise in full of the Agent’s option to offer for sale additional Units. The Offering was conducted on a “best efforts” basis by Canaccord Genuity Corp. as sole agent and bookrunner (the “Agent“).

A recent press release showcasing what their product can do - https://aluula.com/aluula-launches-aluula-deified

Cannara Biotech Inc. (TSX:LOVE) Moving on Up

In our cannabis corner, Cannara continues to perform well and is now graduating to the TSX. Full archives here - https://www.canadianvalueinvestors.com/t/love

CANNARA BIOTECH INC. (”LOVE”) - Graduation TSX Venture Tier 2 Company TSX Venture Exchange has been advised that the Company’s common shares will be listed and commence trading on the Toronto Stock Exchange at the opening on Monday, March 2, 2026, under the symbol ‘LOVE’. As a result of this graduation, there will be no further trading under the symbol ‘LOVE’ on TSX Venture Exchange after Friday, February 27, 2026 and the Company’s common shares will be delisted from TSX Venture Exchange at the commencement of trading on the Toronto Stock Exchange.

Growth continues through building out new rooms in their Valleyfield Facility. Sure they are great managers, but it helps when your key second facility was bought in a distressed sale for 10 cents on the dollar (~$27MM vs ~$250MM build cost). They have 12 rooms open and another 12 to go. At ~$1MM per room in additional capex (lights and HVAC) for ~5,000 KG/year, it is very capital efficient. Things are looking up.

Goldmoney (TSX:XAU) keeps minting more gold

Since we purchased and profiled Goldmoney last September, it has turned into a goldmine. https://www.canadianvalueinvestors.com/p/goldmoney-xau-analysis

Our thesis? At current prices ~$10 ~$126MM market cap, the price is undemanding and an asymmetric bet. The real estate portfolio is very likely currently worth roughly this never mind future development opportunities, repurchases are significant, and the storage business could have very real tailwinds with the run up in gold as fees this business earns are a percentage of the underlying precious metal.

Since our post, an interim sale of one of their real estate properties provides some insight into the return of these ventures and management’s mindset.

Read more

Here is the latest from Canadian Value Investors!

• Reflecting on 2025

• Nathan’s Hot Dogs Were On Sale

• Thinking About Relative Value with Thinkific TSX:THNC

• Navigating 2026 – A Sign of the Times

• Always Think About Liquidity – Spreads Low, Risks High

• Colabor Complacency – A Quick Case Study

• Canlan Sports TSX:ICE – Keeping it simple

Reflecting on 2025

We would first like to thank all of you for your ongoing support! Last year was busy here at Canadian Value Investors:

• We covered conferences, including Cheatsheets for Planet MicroCap and SmallCap Discoveries covering every company.

• We did deep dives of names like Velan Inc., D-Box, Goldmoney, Canlan Sports, and Gamehost. We keep a directory here - https://www.canadianvalueinvestors.com/directory

• We dipped our toes into new industries like cannabis, with overviews of Rubicon and Cannara (we remain long both). Our first post here - https://www.canadianvalueinvestors.com/p/the-curious-case-of-canadian-cannabis

We look forward to doing even more in 2026!

We spent more time than usual this January reflecting on the past year. In part, it was because of how odd the year was. Our portfolios did well, exceeding the typical benchmarks, but we could have also just bought a few gold bars and gone to the beach.

Our favourite investing and general life paradox: If you didn’t make the mistakes you have made so far, including the terrible ones, would you have been able to get as far as where you are? With the benefit of hindsight, we now have a long list of missed investments, a few terrible ones, and a laundry list of life decisions we could have made better. But the irony is that if we didn’t miss that first investment or make that first big mistake, maybe we wouldn’t have made it at all.

And what do you do about all of this? Just keep going.

Disclaimer - The content contained in this blog represents the opinions of contributors. You should assume contributors have positions in the securities discussed, whether long, short, or somewhere in between, and that this creates an obvious bias and conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance whatsoever and are subject to certain risks, uncertain risks, and other factors. Information might also be completely out of date and may or may not be updated. In addition, no one guarantees the accuracy of any information provided and none of the information should be construed as investment advice or any other kind of advice under any circumstance, and the blog is a blog and not a registered investment advisor or broker in any jurisdiction. Frankly, no information here should be used for any purpose, except for entertainment (and we hope you enjoy).

Nathan’s Hot Dogs Were on Sale

As we wrote last March:

Nathan’s Famous hot dogs started in 1916 and is now the most famous hot dog in the world. It has been steadily growing brand value and cash flows, primarily through its licensing and branded products, while de-levering their balance sheet. It also happens to have a key owner that we think wants to sell and a newly public key partner [Smithfield Foods] looking for stable cash flows that can afford to buy. A 25-50% offer above the current share price would not be unreasonable and appears like it could happen soon.

The strategic partner did indeed buy them out. It was just announced and a reasonable outcome for shareholders, albeit below summer speculative highs.

SMITHFIELD, Va., January 21, 2026 / -- Smithfield Foods, Inc. (Nasdaq: SFD) (“Smithfield Foods” or “Smithfield”), an American food company and an industry leader in value-added packaged meats and fresh pork, and Nathan’s Famous, Inc. (Nasdaq: NATH) (“Nathan’s Famous”), today announced that they have entered into a definitive merger agreement for Smithfield Foods to acquire all of Nathan’s Famous’ issued and outstanding shares for $102.00 per share in cash, which represents an enterprise value of approximately $450 million… The transaction represents a valuation of approximately 12.4x Nathan’s Famous’s LTM adjusted EBITDA2 and a multiple of approximately 10.0x post- synergies. Smithfield Foods expects to achieve annual cost synergies of approximately $9 million by the second anniversary of the deal closing

Thinking About Relative Value with Thinkific TSX:THNC

As we covered in Fallen Darlings in November, we think the set up of Thinkific today is interesting and we remain long. It is also a good case study. AI has created widespread concern in various tech names, including Constellation and Duolingo (no positions, evaluating).

We always keep in mind expectations and value. Duolingo reported Q3 revenue growth of 41% in to ~$270MM, a 36% increase in users to 50+ million, and yet there was a 8% decline in the stock price at time of writing.

In Thinkific’s case, if they were to drop another 50% they would be trading roughly for the cash on hand and no debt, with the business (that is making interesting changes) for free. This is not a stock with high expectations built in, which we always like. We also think management knows something needs to be done this year and will do their best to make changes accordingly.

https://www.canadianvalueinvestors.com/t/thnc

Navigating 2026 – A Sign of the Times

We have to say this is an interesting investing environment. Fears of an AI bubble, precious and base metals taking off, and a calm loose lending market in the background. This might understandably leave a value investor scratching their head.

To help keep us grounded, we go back to one of our favourite investors, Stanley Druckenmiller of Quantum Fund fame and formerly lead portfolio manager for George Soros. He has had a remarkably successful investing career, with many great big bets. But he also made the worst mistake ever in 2000, buying at the peak of the Dotcom boom.

I made a lot of mistakes, but I made one real doozy. So, this is kind of a funny story, at least it is 15 years later because the pain has subsided a little. But in 1999 after Yahoo and America Online had already gone up like tenfold, I got the bright idea at Soros to short internet stocks. And I put 200 million in them in about February and by mid-March the 200 million short I had, lost $600 million on, gotten completely beat up and was down like 15 percent on the year. And I was very proud of the fact that I never had a down year, and I thought well, I’m finished.

So, the next thing that happens is I can’t remember whether I went to Silicon Valley or I talked to some 22-year-old with Asperger’s. But whoever it was, they convinced me about this new tech boom that was going to take place. So I went and hired a couple of gunslingers because we only knew about IBM and Hewlett-Packard. I needed Veritas and Verisign. I wanted the six. So, we hired this guy and we end up on the year — we had been down 15 and we ended up like 35 percent on the year. And the Nasdaq’s gone up 400 percent.

So, I’ll never forget it. January of 2000 I go into Soros’s office and I say I’m selling all the tech stocks, selling everything. This is crazy…at 104 times earnings. This is nuts. Just kind of as I explained earlier, we’re going to step aside, wait for the next fat pitch. I didn’t fire the two gunslingers. They didn’t have enough money to really hurt the fund, but they started making 3 percent a day and I’m out. It is driving me nuts. I mean their little account is like up 50 percent on the year. I think Quantum was up seven. It’s just sitting there.

So like around March I could feel it coming. I just — I had to play. I couldn’t help myself. And three times the same week I pick up a — don’t do it. Don’t do it. Anyway, I pick up the phone finally. I think I missed the top by an hour. I bought $6 billion worth of tech stocks, and in six weeks I had left Soros and I had lost $3 billion in that one play. You asked me what I learned. I didn’t learn anything. I already knew that I wasn’t supposed to do that. I was just an emotional basket case and couldn’t help myself. So, maybe I learned not to do it again, but I already knew that.

Another lesson from Stanley is to always think about market liquidity.

Always Think About Liquidity – Spreads Low, Risk High

We fret. There is lots of talk about inflated valuations and sticky inflation, both which we worry about. However, another concern we have that is less talked about is the complacency of the debt market. It appears the lenders of the world are reading different newspapers than we are, and that means if there is any sort of hiccup, the reversal could be quite sharp. We view the following case as a canary.

For now, many money managers continue to dive into the rally, in part due to the prospect of interest-rate cuts by the Federal Reserve and other central banks. Easing could help the global economy navigate threats from President Donald Trump’s tariffs.

There’s huge demand for debt, even the riskiest sort, as investors hunt for yield. That’s being met by record supply.

The extra yield investors demand to hold junk notes is also at the lowest in almost two decades. On Monday, the US leveraged loan market had its busiest day since July, with some $35 billion of deals launched.

Colabor Group (TSX: GCL) Complacency – A Case Study

A great case study is Colabor Group (no position ever), which is going through a restructuring. They are a sleepy TSX name that distributes more than 10,000 food and related products from over 600 suppliers to over 5,000 customers. A pretty simple business that is typically not very exciting, but at least not often exposed to dramatic failures. Yet, here we are.

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Disclosure: We own this one. Recent purchases ~$0.70.

Today we cover our latest purchase, Atlas Engineered Wood Products TSXV:AEP. A darling a few years ago, they suffered from the recent general slowdown in Canadian housing, much like the rest of the industry, and analysts and the market have become fatigued. At the same time, the Company has continued its consolidation strategy of trusses and engineered wood products and is advancing to a major step change with their first automated truss facility coming online this year. This is our kind of story.

We have covered building products before through our coverage of Taiga Building Products (still neat, though not a material hold at time of posting and subject to change). Full coverage here - https://www.canadianvalueinvestors.com/t/tbl

Atlas has piqued our interest because:

• They are consolidating in a very fragmented industry facing structural labour shortages and structural demand from population growth, leading to…

• Advantages for companies that are very good operators who save time/money for homebuilders, who are facing their own cost challenges, labour shortages and coming wave of retirements, leading to interest in…

• The automation of the industry, which we have seen play out upstream wood trusts in the actual lumber industry, and is just starting in trusses, and importantly…

• There might be better long-term economics in trusses vs lumber, given the limited capital available to most truss companies due to their small size and regional nature of truss manufacturing.

Is the market’s pricing right, or might AEP be a bargain?

• The Products

• Labour Shortages

• How Trusses Fit In

• Macro Background: Housing starts greenshoots

• The AEP Business Model

• Acquisition History

• Automation and the Big Bet on Clinton

• Clinton and… Who is Trussmatic Anyway?

• Building a Lumber Mill Today: Will Canadian trusses be different?

• The Long-Term Vision

• Financials

Disclaimer - The content contained in this blog represents the opinions of contributors. You should assume contributors have positions in the securities discussed, whether long, short, or somewhere in between, and that this creates an obvious bias and conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance whatsoever and are subject to certain risks, uncertain risks, and other factors. Information might also be completely out of date and may or may not be updated. In addition, no one guarantees the accuracy of any information provided and none of the information should be construed as investment advice or any other kind of advice under any circumstance, and the blog is a blog and not a registered investment advisor or broker in any jurisdiction. Frankly, no information here should be used for any purpose, except for entertainment (and we hope you enjoy).

Atlas Engineered Products – A brief history

We always enjoy looking back at the history of a company. For Atlas, their public venture started in 2017 through a typical reverse takeover with a long-troubled unrelated entity called Archer Petroleum Corp. (it was a shell by this point). However, the history of Atlas dates back to 1999 and has always been based in Nanaimo, B.C. The key person from the start is the current CEO Hadi Abassi. He stepped away from the leadership position in 2018 (never fully stepped away), but was brought back in 2021.

After going public, the Company completed a number of acquisitions, which we will get into later.

The Products

Atlas started in roof trusses and it remains the core of the business, but the long-term vision of management is grander. But first, trusses.

When building a wood framed structure, you can either build the roof rafters on site or use pre-fabricated trusses. Trusses date back to the 1950’s and the key innovation was the metal connector plates.

They have a… structural advantage that has become more important over time:

• Speed / schedule certainty and lower site labour risk - Trusses arrive ready to install and are integrated with the design and inspection process, simplifying and accelerating on site construction. They reduce the need for skilled labour on site and the overall cost can be 50% cheaper than building rafters on site depending on the market, never mind the time savings.

• Engineered performance and reduced waste - Trusses are designed for specific spans/loads (snow/wind), with consistent quality control versus field-built assemblies. Factory cutting reduces scrap and rework and this has been continually improved through increased automation.

Trusses are widely accepted and the preferred method of building in Canada. There are established standards and fun organizations like The Canadian Wood Truss Association - http://www.cwta.net/

Canadian-specific industry data is not great, but the U.S. provides helpful indicators. In general, the use of trusses is inversely related to labour supply and their use has been directionality increasing in all markets. Trusses always have a speed advantage, but if on-site labour is cheap and build time is not a high priority, on-site labour can be used. Canada already uses trusses extensively and this was accelerated in all of North America by COVID.

Roof trusses topped the list for intent to increase use in the future—not unexpected since most builders are comfortable with trusses. About 70% of all new homes are constructed with roof trusses presently. Following at a distance, however, was pre-cut framing, coming in ahead of the other options offered: open- or closed-wall panels, floor panels, modular, precast concrete, or manufactured homes.

https://www.homeinnovation.com/insights/trends_data/the-future-of-offsite-housing-pre-cut-framing-makes-the-cut/45917

Labour shortages

It is widely understood that Canada has a very severe shortage of skilled labour and it is going to get much worse. The pressure to manage costs and save time provide very strong tailwinds for those that can help. The numbers are quite concerning.

Growth in construction demands over the forecast period is projected to require the labour force to expand by 111,600 workers. When this growth is added to projected retirements, the industry’s overall hiring requirement rises to 380,500 workers by 2034.

Based on historical trends, much of this requirement can be met by the expected recruitment of approximately 272,200 new entrant workers under the age of 30 during this period. However, even at these heightened levels of recruitment, the industry may face a shortage of as many as 108,300 workers by 2034.

https://www.buildforce.ca/en/press-release/renewed-residential-activity-and-ongoing-work-on-major-non-residential-projects-elevate-construction-demands-to-2034/

As a side note, we expect the replacement cost of buildings to continue to increase significantly, and view companies that can take advantage of this, like Mainstreet Equity (still long), as long-term beneficiaries. https://www.canadianvalueinvestors.com/t/meq

How Trusses Fit In

As part of our research, we talked to home builders and watched a house get built. By using floor trusses, roof trusses, and wall panels, the framing took only a few days.

Truss pricing is effectively a derivative of overall lumber prices. For those that did renovations during COVID, we are sure they recall the unprecedented volatility in lumber prices during that time. It accelerated the use of trusses.

To give you context, here is how framing fits into the cost for a 4-plex build out based on discussions we had with a home builder.

Macro Background: Housing starts greenshoots

The key piece of macro information for Atlas is housing starts, which is a derivative of population growth and natural replacement as homes reach end of life.

A Globe and Mail front page headline a few months ago might give you pause - “CANADA REPORTS RECORD DROP IN POPULATION” 🙄 https://www.theglobeandmail.com/business/article-canada-population-decline-third-quarter-statistics-canada/

Every once in awhile we get annoyed enough to make some charts. Today is one of those days. The “record drop” is a blip and, when looking back to 1945, we have been well above trend for the last few years driven by immigration policies. We are still very short of houses. According to Canada Mortgage and Housing Corporation,

We now estimate that housing starts must nearly double to around 430,000 to 480,000 units per year until 2035 to meet projected demand. This will require action by everyone to change how we build homes.

https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-research/research-reports/accelerate-supply/canadas-housing-supply-shortages-a-new-framework

Secondly, affordability remains a major challenge, with OECD charts telling the story. According to Statistics Canada, construction costs in some markets have increased by over 70% since 2017.

Sources: Statistics Canada, OECD

Housing Starts

With this backdrop, housing starts in Canada increased 5% year-over-year in 2025 to 259,000 units. Atlas has also noted that quoting activity has improved over the last few quarters.

We should note that the national headline number does not tell you the full story. Canada is not one housing market and truss mills actually serve micro-markets (typically what can be covered within a day’s drive given transportation costs). Ontario and B.C. remain weak, and even this oversimplifies.

https://www.cmhc-schl.gc.ca/media-newsroom/news-releases/2025/housing-starts-september-2025

In the background, the key political parties view housing as key parts of their platform. For example, the Liberals recently announced their Build Canada Homes program. Ironically, announcements so far have likely hurt housing starts as builders delay projects, awaiting details on the nature of any support. https://www.pm.gc.ca/en/news/news-releases/2025/09/14/prime-minister-carney-launches-build-canada-homes

We are highly skeptical of these plans, but do not view any of this potential as being priced in. And it just might happen.

Here is additional background reading on understanding housing supply: https://www150.statcan.gc.ca/n1/pub/46-28-0001/2023001/article/00003-eng.htm

The AEP Business Model

They aim to have a “decentralized corporate structure with regional hubs supported by a lean parent office to provide the most effective means of managing a geographically diverse operation.” What this means in practice is each facility is given significant operational autonomy to execute, but is also benchmarked against others, while aspects like accounting, finance, benefits, procurement, and IT are centralized. Buying power kicks in.

The core thesis is to grow and lower costs through scaling via acquisitions and automation.

Acquisition History

Their strategy has been quite thoughtful, focusing on concentrating facilities in less competitive markets. They take on one to two acquisitions a year, though interestingly 2024 was quiet as sellers likely wanted to be priced off of COVID sales and margins while they were digesting LCF and capex spend was ramping up. They have been able to make acquisitions at very low EBITDA multiples. LCF was a major acquisition, albeit coincided with a challenging market nationally. This has hid high utilization of these assets.

In general, they have largely been successful, with the odd acquisition failure being their venture into windows.

As of February 2021, the Company no longer manufactured windows. Atlas Building Systems Ltd. (“ABS”) (formally Coastal Windows Ltd.) has transitioned to wall panel manufacturing which is more aligned with the Company’s core products in the wood products industry. The window production equipment and inventory has been transitioned to assets held for sale at their carrying value. The carrying value at the time of transition was $94,078 in production equipment and $170,209 in inventory.

Overall, this provides some comfort that management is focused and will pivot when something does not work.

Automation and the Big Bet on Clinton

The second piece to Atlas’ plan is automation. They have been investing in automation for years, such as using saws like these. However, this latest push is different.

Read more

Yesterday, they announced a deal for the Velan family-owned shares at a price significantly below market.

Read more

This was a great year for value investing and our Canadian Value Investors blog. We crossed over 1,700 subscribers, far beyond anything we expected for our little Canadian blog focused on mostly oddball value stocks. We continue to be surprised by how great the community is and cannot express how thankful we are for your support! We love doing this and plan to ramp up in the new year. We have a few new ideas cooking that we cannot wait to share.

Canadian Value Investors Holiday Prizes

To celebrate the year, we are having a holiday giveaway for our paying subscribers with three prizes tied to companies we cover (no sponsorship, we just like their products and are very happy shareholders):

• $100 gift card to KITS Eyecare TSX: KITS (up ~100% since we profiled in 2024 and still long) and a Buffett mug

• $100 gift card to Cineplex Theatres (to enjoy some D-Box TSX:DBO seats, up ~120% since we profiled in August and still very long) and a Buffett mug

• A Buffett mug

Paying subscribers as of Christmas morning are eligible, so there is still time to join. Not a paying subscriber? We are also giving away a six month paid subscription to one of our free subscribers.

Subscribe now

There is also a 20% subscription discount through the end of the year. Perhaps you need a year-end stocking stuffer for that value investor in your life...?

Give a gift subscription

What is a Buffett mug you ask?

“The mug is a classic.” – Warren Buffett. He really thinks so. In between reading annual reports and writing articles, we like to do fun projects. One of them a few years ago was writing a letter to Warren Buffett. We wanted to ask him about the Delta Duck Club and also thank him for his public letters, the Berkshire annual meetings (we’ve gone several times), and of course financial performance (family shareholders).

As a small token of our appreciation, we also sent him a mug we designed highlighting a few of the great early investments including our favourite story, the Delta Duck Club. We did not expect anything, but to our surprise he sent us a reply (Quote: “P.S. The mug is a classic. Thanks.”) including the 1965 Delta Duck Club financials.

We hope you enjoy the Delta Duck Club story.

Thank you all for your support. We wish you all happy holidays and a tenbagger in the new year!

WWBD – What Would Buffett Do? A question we often ask ourselves.

The Atled Story - Delta Duck Club Financials

Read more

Welcome to Canadian Value Investors holiday edition! We have one fun year-end investment gift idea for you. But before we get into Crocs, we first have updates on two companies we cover and hold. It looks like shareholders at NFI Group and Outdoor Holdings (POWW) received great gifts this year for Christmas. We remain long on both.

NFI Group TSX:NFI Year-end Christmas Gift

We recently provided an update on NFI Group. A key issue was the major very expensive $230MM electric bus battery recall. As we wrote then, “The charge NFI is taking seems very conservative…the parent of XALT is not going bankrupt, so there is potentially some recoverable amount.”

It turns out to not be such a bad deal for NFI, with the costs largely recovered and some intellectual property to boot. We view this as an excellent outcome.

NFI Announces Battery Recall Agreement with XALT

December 16, 2025

Cooperative resolution expands NFI’s zero-emission bus capabilities and strengthens financial capacity to perform battery recall campaign

WINNIPEG, Manitoba, Dec. 16, 2025 (GLOBE NEWSWIRE) -- (TSX: NFI, OTC: NFYEF, TSX: NFI.DB) NFI Group Inc. (”NFI” or the “Company”), a leader in propulsion-agnostic bus and coach mobility solutions, today announced that it has signed a master settlement agreement (“MSA” or the “Settlement”) with XALT Energy, LLC and its subsidiaries (collectively “XALT”) regarding costs related to the recall on Generation 3 batteries and estimated future costs associated with supporting buses operating with other types of XALT batteries (collectively the “Recall”) described in NFI’s third quarter earnings release on November 6, 2025.

The Settlement is comprised of cash payments, the transfer of certain personnel, and the contribution of relevant assets including battery cells, systems, equipment, and intellectual property, that in aggregate provide approximately 75% to 80% recovery against NFI’s original $229 million provision. The Settlement fully resolves all disputes between NFI and XALT with no admission of fault, wrongdoing, or liability by either party

https://www.nfigroup.com/news-releases/news-release-details/nfi-announces-battery-recall-agreement-xalt

The CEO has also just announced his retirement. Maybe not such a bad thing to have a fresh set of eyes in the top seat. We remain long. Some others are bullish it seems, including their largest shareholder.

NFI Group Amends Agreement with Coliseum Capital Management

December 19, 2025

Provides Coliseum flexibility to increase its ownership up to 25% of NFI’s outstanding shares

Reflects long-term support and confidence of NFI’s largest shareholder

WINNIPEG. Manitoba, Dec. 19, 2025 (GLOBE NEWSWIRE) -- (TSX: NFI, OTC: NFYEF, TSX: NFI.DB) NFI Group Inc. (“NFI” or the “Company”), a leader in bus and coach mobility solutions, today announced that its Board of Directors (the “Board”) has approved an amendment to its existing Investment Agreement entered into in May 2023 (as amended, the “Amended Agreement”) with Coliseum Capital Management, LLC, as manager of certain funds and accounts (collectively, “Coliseum”).

https://www.nfigroup.com/news-releases/news-release-details/nfi-group-amends-agreement-coliseum-capital-management

Outdoor Holdings Company (previously Ammo Inc.) NASDAQ: POWW shareholders get a gift too

Outdoor holdings shareholders received a gift from the SEC.

Atlanta, GA., Dec. 16, 2025 (GLOBE NEWSWIRE) -- Outdoor Holding Company (Nasdaq: POWW, POWWP) (“OHC,” “we,” “us,” “our” or the “Company”), the owner of GunBroker.com, the largest online marketplace for firearms, hunting and related products, today announced that it has reached a settlement with the U.S. Securities and Exchange Commission (“SEC”) to resolve its previously disclosed investigation. “We are pleased to have reached a resolution with the SEC which does not include a civil penalty or monetary sanction. The Company has worked hard to put this chapter behind us,” said Steve Urvan, Chairman and Chief Executive Officer of Outdoor Holding Company.

Without admitting or denying the SEC’s findings except as to jurisdiction, the Company agreed to cease and desist from future violations of the antifraud and numerous other provisions of the federal securities laws stemming from, among other things: (i) failure to disclose a former executive officer’s employment and role; (ii) failure to disclose related party transactions involving that former executive officer; (iii) improper capitalization of certain equity issuance costs; (iv) understatement of stock compensation expenses; (v) disclosure concerning the calculation of Adjusted EBITDA; and (vi) inadequate internal accounting controls. The Order acknowledged that the Company is now operating under new senior management that is different from those responsible for the conduct leading to the violations described in the Order.

https://outdoorholding.com/news/news-details/2025/Outdoor-Holding-Company-Announces-Settlement-in-SEC-Administrative-Matter/default.aspx

The turnaround continues. We remain long.

NASDAQ:CROX for Christmas

Disclosure: We now own some Crocs and CROX for the first time in our lives. Position size: Small. Article: Fun.

“What market cap size do you look at?” We have been asked this question many times over the years, and the answer has always been we do not have one. Our core investing philosophy is that anything can be mispriced, it is just that we believe small caps are the most likely place that we will find mispricings. But, that does not mean we just fish there. Frankly, we think many investors, in general, box themselves in unnecessarily and value-oriented investors seem to be particularly prone to this.

“You have to fish where the fish are” as Charlie Munger said. We think he meant that you had to spend your time on areas where the opportunities are greatest, rather than in crowded ponds. However, we think that his quote and mindset is greatly misunderstood. The thing is that sometimes large caps and mega caps also go through market gyrations too, and the easiest time we have found to fish is at peak pessimism. The key is that 1) it does not happen very often, but 2) the nice thing about this strategy is that it does not take much time to look through these ideas.

We usually find one every few years, and often around Christmas it seems. Today we cover Crocs, the most controversial footwear in the world. While it is not a large position, we wanted to end 2025 on a fun note. Maybe this year for Christmas you should get your family a bit of CROX as a stocking stuffer.

Previous large cap checks – Philips CPAP Fiasco

One of our favourite large cap stories was Koninklijke Philips of CPAP machine and toothbrush fame. In late 2022/2023 they were facing serious concerns. As we wrote then:

Is Koninklijke Philips (NYSE:PHG, AS:PHIA) a wonderful Christmas gift, or a lump of coal?

What a stock chart. Philips is a name that you are bound to know. What you might not know is that they are in the middle of a major recall of their sleep apnea CPAP machines and their stock has declined dramatically due to potential ranges of the final total costs, compounded by ongoing supply chain disruptions affecting the whole business. We think Philips is trading at a great value, even under a bearish scenario, and could be considered a bargain purchase in a few years.

While not a holding or active idea for us today, Philips’ history is worth spending some time on. One particularly interesting tidbit is that Philips was one of the original investors in Taiwan Semiconductor TSMC. They did well on the sales of their interests (staggered process), but if they kept the originally owned 28% of TSMC, it would be worth about $100 billion at the time of our original article, dwarfing the remaining Philips healthcare business (~$20 billion and change). TSMC is up another 200% since then.

The core thesis was around CPAP concerns. After talking with various clinics and CPAP users, we concluded it was indeed a serious problem, but overly priced in.

Our time horizon is 3-5 years. We expect the ride to be rocky in the meantime as the company goes through various lawsuits. Also, unless there is a material improvement in underlying operations we would likely seek to sell around EUR 30 (depending on other opportunities at the time of course).

Subsequently, Philips agreed to a US$1.1B settlement for personal injury and medical monitoring claims, on the low end of our range. https://www.philips.com/a-w/about/news/archive/corpcomms/news/press/2024/philips-first-quarter-results-2024.html

We got our exit. Our original timeline was 3-5 years, but it was much faster than that. Importantly, the stock outperformed the key CPAP competitor Resmed over the same period, i.e. it was not external factors raising all ships.

Another example is British American Tobacco, which we covered in March of 2024.

In 2016 BATS made a ~$50 billion takeover of U.S. rival Reynolds American, creating the world’s biggest listed tobacco company. Subsequent to the merger, a combination of high leverage and market headwinds caused a significant decline in the stock price. The decline was driven by a collapse of expectations as shown below.

https://www.canadianvalueinvestors.com/i/142736491/british-american-tobacco-bti-bats-low-expectations

Again, real concerns about the core business, but priced in in our view, supported by significant additional cash coming in from sales of their stake in ITC, share repurchases, and also potential tailwinds from the pouch business. Subsequent stock performance was quite neat and resulted in a good exit.

Now about Crocs

Recent weakness and investor skepticism are rooted in real issues. In Crocs case, we think:

• The HEYDUDE acquisition in 2022 for $2.5 billion really does not seem to have gone well.

• Weakness in HEYDUDE and U.S. fears of tariffs are real. HEYDUDE has stumbled quite hard, while Crocs North American sales are down single digits recently.

• Tariffs and some inventory overhang have been painful.

However, we think pessimism is overblown. Concerns are obfuscating brand resiliency and growing overseas sales. Significant share repurchases are also creating a tailwind for shareholders. Market pessimism and a low share price combined with share repurchases is a wonderful combination for longer-term holders.

History does not repeat itself, but opportunities rhyme. How did Crocs get where it is today?

• 2002–2004: Crocs launches the original “Beach” clog and sells out at the Fort Lauderdale Boat Show, with early adoption driven by comfort, water-friendly design, and ease of use.

• 2005–2007: The brand breaks into the mainstream through marketing, goes public in 2006, and adds Jibbitz charms, turning Crocs into a customizable, collectible product. Sales also start in China through a distributor, but real overseas success remains elusive until much later.

• 2008–2013: Rapid over-expansion collides with weaker demand, forcing store closures, restructuring, and a prolonged survival phase.

• 2016–2019: Crocs regains cultural relevance through high-profile collaborations, including Post Malone, reframing the brand from novelty to fashion statement.

• 2020: Pandemic-era demand for comfort and the “Free Pair for Healthcare” initiative sharply boost visibility and brand goodwill. They also refocus on overseas markets, pivoting from generic Crocs to region-specific offerings. Overseas sales subsequently start to accelerate.

• 2018–2022: Luxury and runway exposure supposedly legitimizes Crocs within a few parts of high fashion, extending the brand beyond utilitarian footwear.

• 2021–2022: Crocs acquires HEYDUDE for $2.5 billion to diversify its portfolio and scale a second casual footwear growth platform.

On the ground research

Something we like doing here at Canadian Value Investors is hands on research and keeping our feet to the ground. How can you understand Crocs… without wearing them? And so, we ordered Classic Clogs for myself and my wife. Look at these beauties.

His and hers.

Importantly, they are actually very comfortable. We understand why healthcare workers wear them. While we are not fashion experts, Crocs must be the most controversial fashion trend outside of real fur.

CROX not so hot

Key problems include:

• Tariffs - Tariffs have not been helpful, with the estimated run rate impact being ~$100MM a year per management with margin compression.

• Brand health efforts – Management is trying to reduce Crocs promotional activity and remove aged old inventory in the market while increasing promotions at HEYDUDE.

• General mixed bag of performance, with growing international Crocs sales and small decline/flat in North America. Q3 was interesting, with international sales growing 23% year-over-year while Crocs declined ~9% and HEYDUDE declined ~20% (oof).

And yet, there are a few things to celebrate.

Read more

Thank you for subscribing to Canadian Value Investors! Today we cover:

• D-Box shaking more seats

• Solitron Devices, Inc. SODI Quick Update – Bookings start to build

• Goldmoney TSX:XAU - What is Mene anyway?

Disclaimer - The content contained in this blog represents the opinions of contributors. You should assume contributors have positions in the securities discussed, whether long, short, or somewhere in between, and that this creates an obvious bias and conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance whatsoever and are subject to certain risks, uncertain risks, and other factors. Information might also be completely out of date and may or may not be updated. In addition, no one guarantees the accuracy of any information provided and none of the information should be construed as investment advice or any other kind of advice under any circumstance, and the blog is a blog and not a registered investment advisor or broker in any jurisdiction. Frankly, no information here should be used for any purpose, except for entertainment (and we hope you enjoy).

TSX:DBO D-Box shaking more seats

Disclosure: We remain long.

D-Box has been on a tear this year. We were a bit late to the party, but it is hard to complain about it. See our initial August post here - https://www.canadianvalueinvestors.com/p/d-box-inc-tsxdbo-and-the-d-box-beat More importantly, the underlying business is doing well.

Another interesting thing to note is that it has been a soft year for theatres. A core piece of the thesis is theatres are using D-Box to get more revenue out of a few seats, and D-Box seats have a much higher occupancy than seats overall.

Per their last quarter (off-cycle): “Second quarter royalty revenues reached a second consecutive quarterly record at $4.5 million. This is an increase of 40% year over year and compares extremely favorably to the gross domestic box office which declined 11.1%¹ in the same period.”

Here is how the year is stacking up. You can see how theatres are dealing with the combined pressure of alternative entertainment and COVID putting gasoline on the fire. Theatre companies are doing everything they can to get more value out of every customer… Maybe a few more D-Box seats is a good idea.

Source: https://www.boxofficemojo.com/

In fact, “D-BOX continued to expand its market presence, achieving a 13.5% year-over-year increase in screen footprint worldwide, bringing total active screens to 1,084.” They will never be in every screen, but a threatre location can put them in a few. Cineplex is about 6% at the moment and they are happy.

As per Cineplex:

“Cineplex continues to focus on providing guests with a variety of premium viewing options through which to enjoy the theatre experience. These premium-priced offerings, which include UltraAVX, VIP Cinemas, IMAX, D-BOX, 3D, 4DX, Cineplex Clubhouse and ScreenX generate higher revenues per patron and expand the customer base. Cineplex believes that these premium formats provide an enhanced guest experience and will continue to charge a ticket price premium for films and events presented in these formats. Cineplex will continue to expand those offerings throughout its circuit for the reminder of 2025 and beyond.

With about 200,000 screens worldwide, D-Box has a nice long runway. The contract with HOYTS in Australia will help (Australia’s second largest cinema operator adding 539 D-Box seats). There is legitimate pushback by analysts about whether seats can work in regions with much lower ticket prices. The funny thing is that life, contrary to new reports, is improving in many regions of the world. We personally had a very nice experience at a surprisingly expensive in-seat-service Cinepolis in Mexico (and we were the only gringos in the theatre at the time). We hope the decide to try using D-Box going forward, instead of Lumma the Argentinian alternative besides 4DX (a very different all-screen solution).

We have also been pleasantly surprised by D-Box’s non-theatrical sales. With growing EBITDA and net cash, the Company is still trading at a single digit multiple. We should have bought more, and maybe we should still buy more. It remains ones of our largest holds.

Solitron Devices, Inc. SODI Quick Update – Bookings start to build

Disclosure: We remain long.

Solitron is a company we have been following since 2022. See full coverage including full overview of the business here - https://www.canadianvalueinvestors.com/t/sodi

As a reminder, their core manufacturing business is power transistors and control modules primarily as a small but absolutely essential input into various weapons systems. It was historically run out of one leased facility, but in 2021 (under new leadership) they decided to find and purchase their own facility. They built up stock, closed down the old facility, and moved the equipment to the new facility. The move was done in the three months ending November 2022, or Q3 FY2023 (year-end is February to add to the confusion).

Note: If you are not familiar with Solitron, the full background post is essential.

The much talked about military stockpiling/re-stockpiling of various weapons systems appears to finally be coming. We note that SODI is at the end of the chain. First, a government orders from one of the big prime contractors and then primes get the subcontracts going with entities that are approved for that specific program, like Solitron. It is helpful to keep in mind that the DoD has an Office of Small Business Programs (OSBP) as we discuss in our original article. https://business.defense.gov/About/Mission/

Mission: To modernize the defense industrial base, accelerate acquisitions, and reestablish deterrence by reducing barriers for small businesses to supply our Warfighters with innovative solutions and critical services.

The slow pace of firm orders coming through has actually been quite concerning from a “how safe are we really” standpoint, as the underlying orders and demand are obviously there. There are several weapons programs where it is going to take years to get back to pre-Ukraine-war stockpile levels, a terrible war but also a terribly small one in the context of world wars. It makes us wonder how resilient Western defense really is, but that is a problem for another day and blog.

Cedar Creek’s Q3 Letter provides additional context:

Solitron Devices (otc: SODI) - the bid price for shares increased from $15.75 per share to $16.40 per share during the third quarter. As a reminder, the fund manager is CEO and a board member of Solitron. The fund owns 11.6% of Solitron’s outstanding shares and the fund manager owns 2.5% personally.

While reported earnings have been soft the last few quarters due to lower revenues owing to timing of receipt of orders, Solitron started seeing a material uptick in orders beginning in the November 2024 quarter. In the fiscal third quarter ending November 30, 2024, bookings were $8.0 million in the quarter, versus sales of $3.4 million. That quarter included a large order for HIMARS (High Mobility Artillery Rocket System) components from L3Harris – Solitron’s second largest defense customer. In the fiscal fourth quarter ending February 28, 2025, Solitron did even better. Bookings in the February 2025 quarter were $8.9 million versus sales of $3.1 million, and included over $5 million from Solitron’s largest defense customer, RTX (formerly Raytheon) for AMRAAM (Advanced Medium-Range Air-to-Air Missile) components. In the May and August quarters bookings exceeded sales despite no orders related to HIMARS or AMRAAM. Solitron expects the next AMRAAM order to be awarded soon.

Their subsequent press release:

SOLITRON DEVICES, INC. ANNOUNCES FISCAL 2026 THIRD QUARTER TO DATE BOOKINGS OF $13.8 MILLION

WEST PALM BEACH, FL – Solitron Devices, Inc. (OTC Pink: SODI) (“Solitron” or the “Company”) is pleased to announce the Company has record breaking bookings for fiscal 2026 third quarter which have already exceeded $13.8 million. The Company’s third quarter starts on September 1st and continues until November 30th. The Company anticipates it will receive additional bookings during the month of November that will be included in its third quarter bookings total.

Bookings in the fiscal 2026 third quarter to date are approximately $13.8 million as compared to approximately $8.0 million in the fiscal 2025 third quarter. Bookings in the first nine months of fiscal 2026 to date are approximately $20.9 million as compared to approximately $11.8 million in the first nine months of fiscal 2025.

Backlog as of today for the fiscal year 2026 was approximately $29.0 million as compared to approximately $12.3 million as of November 30, 2024 for fiscal year 2025.

Next year should be busy for SODI.

Goldmoney TSX:XAU - What is Menē anyway?

Disclosure: We remain long TSX:XAU. No position in TSXV:MENE except indirectly through XAU.

Back in September, we wrote about Goldmoney TSX:XAU – “Turning gold into a pile of real estate on sale”.

As we noted in the article, one of their interests is in Menē, which is co-founded by and a venture of the CEO of Goldmoney, Roy Sebag. Menē is publicly listed on the TSX Venture with Goldmoney owning ~30% equating to ~US$9MM of value, while CEO Roy owns 35%. While not core to our Goldmoney thesis, it is part of the sum of parts (Goldmoney market cap: ~$140MMM). And so, what is Menē anyway? We decided to make an order from this luxury pure gold jewelry company. Was it wife approved?

Menē – A bit of history

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Disclosure: We remain long.

We first wrote about NFI on February 9^th. At the time we said:

Today we tell the tale of NFI, North America’s largest bus manufacturer. It has gone through several years of supply chain hell, only to emerge out of it into an unprecedented trade war with Trump. Why would you invest in a Canadian domiciled bus manufacturer in the middle of all of this?

We think the market is missing the story. NFI is just turning the corner, returning to positive EBITDA, improved contracting and procurement processes, and a record $12 billion backlog, while many competitors have gone bankrupt or have exited the market. Now, North America is down to two key manufacturers of transit buses, with the other smaller one being at full capacity. And although NFI is headquartered in Canada, they have been producing buses for years that already comply with Buy America rules.

Based on the stock chart, our timing was quite good, and we do not expect to be able to repeat that. We reduced our position over the summer as we felt the stock got ahead of the underlying performance. Since then, two key things have happened. The first is, most notably, a major very expensive $230MM electric bus battery recall was press released in September causing the stock to pull back significantly (though still 30%+ above earlier this year). The second is the recently announced solution to the long running seating problem demonstrates that the competitive dynamics really have changed.

Is this a buying opportunity, or is this just a bad bus that cannot be fixed? We think the market has overreacted and is fatigued with the story. But, if “one-time” items keep happening, they need to considered recurring. We are not at that point, yet. Time for us to get back on that bus.

Here is our NFI Q3 2025 Update:

• Bad batteries

• Long-running seat issue solution found – Proof of the new competitive dynamics?

• And tariffs

• And debt

• Outlook – “Never let a good crisis go to waste”

• If you are not familiar with the story, we recommend you read our initial piece “Is this our bus?” and subsequent updates including their successful debt refinancing, full archives here - https://www.canadianvalueinvestors.com/t/nfi

Disclaimer - The content contained in this blog represents the opinions of contributors. You should assume contributors have positions in the securities discussed, whether long, short, or somewhere in between, and that this creates an obvious bias and conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance whatsoever and are subject to certain risks, uncertain risks, and other factors. Information might also be completely out of date and may or may not be updated. In addition, no one guarantees the accuracy of any information provided and none of the information should be construed as investment advice or any other kind of advice under any circumstance, and the blog is a blog and not a registered investment advisor or broker in any jurisdiction. Frankly, no information here should be used for any purpose, except for entertainment (and we hope you enjoy).

Bad batteries

In September NFI announced some pretty bad news, a $230MM battery recall due to a few fires.

2025 North American Battery Recall

During the quarter, NFI initiated a voluntary recall with the National Highway Traffic Safety Administration and Transport Canada. The recall impacted approximately 700 battery-electric buses and coaches (primarily New Flyer buses) equipped with certain battery modules from a common supplier, XALT Energy, LLC (referred to as XALT). After issuing the recall, NFI deployed operational guidelines and software to limit the state of charge and speed of charging for the continued safe operation of the affected buses and coaches.

The Company has now determined that full battery replacement on these buses is required. NFI is finalizing its execution plan, with the replacement campaign expected to take approximately 18 to 24 months to complete, starting in the first half of 2026. In 2025 Q3, NFI recorded a warranty provision of $229.9 million, reflecting the estimated costs for full battery replacement on all the vehicles impacted by the recall and estimated future costs associated with supporting vehicles in service that have other older XALT batteries (collectively, the Battery Recall). NFI has executed a tentative term sheet with XALT regarding the ongoing battery recall and is working towards a definitive agreement concerning the associated costs.

Amounts accrued for the Battery Recall are based on management’s best estimates of the amounts that will ultimately be required to settle such items as of this writing. Adjustments to these figures may be made as changes in the cost estimates become known. These adjustments can have a favorable or unfavorable impact on NFI’s results.

Additionally, on October 28, 2025, XALT announced its decision to exit battery manufacturing, advising that it will wind down its

U.S. battery operations. XALT’s wind down does not change NFI’s expectation to finalize an agreement that meets the Company’s operational requirements and the needs of its customers.

NFI had previously taken proactive steps to move its primary battery supply for New Flyer battery-electric buses to a different supplier, who has been providing battery systems to NFI since 2023. This supplier is expected to provide batteries on new battery- electric buses in production and potentially the replacement of batteries on buses impacted by the recall.

This is expensive with a provision of ~US$328k per bus. However, the story is nuanced. NFI stopped using this battery provider, XALT, in 2023, and appears to have taken a very conservative charge while actual costs might be quite a bit lower. In addition, while a short-term headwind, we view this as a long-term tailwind. The ability to withstand major hiccups is absolutely essential with bus manufacturing, where contracts are large and demanding. Smaller incumbents and start ups just cannot withstand these types of issues, and many have failed because of them.

The XALT Recall

The battery is made by XALT. Here is the Transport Canada recall - https://recalls-rappels.canada.ca/en/alert-recall/transport-canada-recall-2025495-new-flyer

And the U.S. notice with better information. https://static.nhtsa.gov/odi/rcl/2025/RCLRPT-25V631-2095.pdf

The first event New Flyer received notice of was in August-2023 from a customer which reported smoke from a roof mounted battery pack. This battery pack was removed and ultimately sent to a third-party forensics team. Freudenberg and New Flyer worked cooperatively during the following months in an attempt to understand the issue.

Another report was received by New Flyer in June-2024. The battery pack from this bus was also sent to Freudenberg for analysis, and cooperation between the two companies continued.

6 more fires occurred between September-24 and July-2025.

Concurrent with these incidents, New Flyer learned of other battery-originated fires which were traced to different issues, leading to 24V625 (for our affiliate MCI only) and 25V566 (New Flyer). New Flyer’s Safety Committee met on 12-September-2025 and decided to conduct a safety recallfor the battery issue.

Interim remedy: Customers are recommended to avoid charging vehicles above a state of charge of 75%, remove buses from the charger once charged and park vehicles outdoors after charging. New Flyer will deploy a vehicle program update to limit the maximum State of Charge (SOC) to 75%, moderately reduce the charging current, and install enhanced post-charge battery monitoring and alert system. The post-charge battery monitoring and alert system will monitor the bus automatically for up to 2 hours after a charging session for any thermal anomalies. If any thermal anomalies are detected, the vehicle will automatically activate its hazard lights and audible buzzers to provide audible and visual alerts to anyone in proximity

It is a bit of an awkward situation, as XALT is winding down their operations. XALT is wholly owned by Freudenberg e-Power Systems (Freudenberg bought the remaining 49.9% in Jan-2023). https://www.freudenberg.com/en/company/press-media/news-detail/2023-01-09-freudenberg-acquires-remaining-ownership-interest-in-battery-manufacturer-xalt-energy-from-joint-venture-partner-mbp-investors However, the green-wave has hit a wall and XALT is just another victim. On Oct 28, 2025, Freudenberg announced it will wind down XALT’s Midland & Auburn Hills (MI) operations, citing weak heavy-duty EV demand.

The charge NFI is taking seems very conservative (and being applied to gross margin – “the Company would have reported a Gross Profit of $115.6 million, with gross margin of 13.1%, without the impact of the battery recall warranty provisions”). We note the parent of XALT is not going bankrupt, so there is potentially some recoverable amount. Conservatively, they have not booked any recovery. “NFI has executed a tentative term sheet with XALT regarding the ongoing battery recall and is working toward a definitive agreement concerning the associated costs. Although a non-binding term sheet has been executed with the supplier the outcome of these discussions remains uncertain. As such, no recoverable amount has been recognized in the financial statements at this time.” They expect XALT will provide the batteries before being wound down and will complete replacements over the next two years.

Long-running seat issue solution found – Proof of the new competitive dynamics in transit buses?

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Disclosure: NEW position. We own this one, with recent purchases around ~$2. Position size: Small

The SmallCap Discoveries 2025 conference was an excellent event. It is not very often that you get to spend a few days in a room filled with great management teams and investors.

But the important question is, were there companies worth investing in?

There were many interesting companies, but we are focusing on a few that we spent time with and think are at a particularly interesting juncture. The list this year is long enough that we are breaking it up into three groups:

• Cannabis Corner

• The Scalers

• Fallen Darlings

Here is part 3.

Disclaimer - The content contained in this blog represents the opinions of contributors. You should assume contributors have positions in the securities discussed, whether long, short, or somewhere in between, and that this creates an obvious bias and conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance whatsoever and are subject to certain risks, uncertain risks, and other factors. Information might also be completely out of date and may or may not be updated. In addition, no one guarantees the accuracy of any information provided and none of the information should be construed as investment advice or any other kind of advice under any circumstance, and the blog is a blog and not a registered investment advisor or broker in any jurisdiction. Frankly, no information here should be used for any purpose, except for entertainment (and we hope you enjoy).

Part 3: The Fallen Darlings - Thinkific Labs Inc. (TSX:THNC)

Thinkific has been a wild ride for investors. The online course platform started in 2012 when the co-founding brothers wanted to solve a problem for themselves; how do you make it easy to sell a course online? Fast forward to 2021 and the business was growing fast, supercharged by COVID-19. Expectations were sky high with a market cap of over a billion dollars. Unfortunately, an overbuild of staff combined with reasonable-instead-of-rocket growth caused the valuation to collapse. This has been aggravated by a key pre-IPO venture shareholder selling as the fund reaches end of life. We find that EV/revenue sometimes useful as a barometer of how bullish or bearish the market is. What a chart.

However, we think the market has swung too far the other way. Thinkific is cash-rich ( approximately half of market cap covered by cash, note that they report in USD) and a reset of the management team and business strategy is starting to show progress. Expectations are at rock bottom and we think it is time for the market to notice Thinkific again.

The Thinkific Today

Let’s start with where Thinkific is today. It is a learning-commerce platform that sells software subscriptions to create, market, and deliver online courses and communities, and, more recently, it monetizes checkout via embedded payments (“Thinkific Commerce”). This is not like Coursera or Udemy, instead it lets individuals and companies own the customer and helps them manage and scale their courses. It is similar to Shopify and actually integrates with that platform.

They have continued to improve their product and have been transitioning to focus on higher value Self Serve larger Plus customers. A key strategy/benefit is their ability to integrate with other platforms and services their customers are using to facilitate internal reporting and sales development.

It appears that the market did get a bit too excited with this IPO. However, is the market now too pessimistic about this cash-rich business showing underlying improvements? Despite recent improvements in revenue, customer mix, and margins, the market has not cared, yet.

To really understand Thinkific, you have to go back to the IPO.

The IPO

We always find it helpful to approach a Company like a history class, and seems particularly appropriate for a company that is largely driven by learning. Thinkific’s story started long before the COVID boom in 2012 when Greg Smith, co-founder and CEO, started the online learning platform he started with his brother, Matt Smith. Greg was teaching LSAT prep courses in-person and later online course. He wanted a product that could help him sell his course, and this led to the creation of Thinkific.

Fast forward to 2020, things were going well, with significant real growth pre-COVID, and then subsequently super charged by the COVID boom. Remember when we were all going to live online forever? The growth was real and the business was around long before the COVID boom *unlike many… “opportunities” around that time).

Unfortunately, there were a few issues, namely:

• IPO hype and subsequent abandonment by market – From an IPO perspective, it was the right company at the right time to go public. Our understanding is that it was 7x oversubscribed and management elected not to increase as they did not need the funds.

• IPO overbuild - market expectations were too high and there was the real problem of overbuilding. Their headcount ballooned, and they subsequently went through two painful rounds of layoffs.

• And then more recently, a key seller – Rhino Ventures invested in Thinkific pre-IPO and also participated in the IPO. Our understanding is that the fund is near the end of its life and began selling in Q2 of this year. Share count per filings reduced from ~16.3MM shares or 24% of outstanding to 9.6MM or 14%. Yikes. That is a lot of shares for the market to digest.

The Reset

There are a few key items that have piqued our interest:

• Conversion to single voting common share structure – In April, the Company removed the founder-owned Multiple Voting Share structure, which we view as good for common shareholders. “We believe all shareholders will benefit from the elimination of the dual-class share structure by aligning voting rights with economic interests.” said Greg Smith, CEO and founder of Thinkific. “The dual-class structure was established to support the Company’s early growth as a public entity. With a four year track record as a public company and confidence in our team, strategic vision, and path forward, the extra voting provisions are no longer necessary.

• Refreshed management – A management and Board refresh began in 2024. Recent changes include a new Chair of the Board in September 2024, Russ Mann from Diversis Capital (B2B SaaS) and is also on a few other boards including NYSE:OOMA. Management-wise, there is a new VP of Program Management/R&D Michael McQuade (Hootsuite), new CPO Elise Stribos (Jungle Scout), new Chief Revenue Officer Amanda Malko (G2, Mailchimp) in 2024, new Chief Product & Technology Officer Ryan Donovan (Hootsuite) in 2024, and a new Head of Thinkific Commerce Clovis Cuqui (Shopify) in 2024. Recent changes have led to…

• Growing sales, stickyish ARR – The strategy to de-emphasize growth of small self-starters (reflecting high churn, failure rate) to medium size enterprises appears to be the right approach. In addition, their payments flywheel appears to be working with volumes and penetration up.

• Plus (higher value larger customers) appears to be working – The majority of new deals are multi-year.

Pressure from key shareholder selling - Rhino Ventures recent sales have put downward pressure on the stock price while their reason for selling (fund life) is disconnected from recent business performance. We view that as an opportunity, though we note that when their lockup ends in December it could lead to further selling. As part of their sale of 6.4MM shares in a secondary offering in June, they agreed to a six month lock up in December. https://www.newswire.ca/news-releases/thinkific-announces-closing-of-secondary-offering-of-approximately-c-14-5-million-of-rhino-group-s-shares-847998319.html

And then there is the underlying improvements in the product. Besides the focus on improved tools for enterprise users to manage their business (e.g. better permissions, etc), there is also the use of AI. This potentially has the benefit of significantly improving the quality of classes by helping providers scale their engagement, while providing Thinkific with another source of revenue from their customers.

Some of the things we’re focused on now, communities and connected learning, just seeing a huge trend towards – especially with AI that just the one to computer consumption of information is not as exciting as engaging in a community of others who are learning. So we’ve made significant investment there. AI enabled, they talked about the teaching assistants, but there’s a whole bunch of other areas where we’re now expanding our AI functionality, just giving people tools to manage their business at scale. So agents that can working on agents that can help you manage the back end of your business, as well as manage the teaching front side, and then, of course, commerce and selling.

As we go forwards, the metrics I’m watching the closest and sort of in order in terms of where I think we’re going to see success leading to growth, the first is average revenue per user right now, $169 per month per user. But obviously with the addition of more commerce functionality and larger customers, that average price point is over $2,000 a month, there’s an opportunity to bring this up significantly as we invest more in that area. That, in turn will bring up our average revenue or our annual recurring revenue, ARR. And finally, the more lagging metric is as more of these customers come on and launch their programs, we see their growth in these sales they do, which is GPV, gross payments volume, and we do have a take rate on that. So that produces an additional revenue line item for us over time.

As per their Q3 2025 call:

Teaching Assistant is a solution designed to help our customers scale their businesses while saving them time, and it will also create additional revenue opportunities for our customers while providing a more interactive, personalized and valuable learning experience to their learners. The positive feedback we have been receiving confirms we’re hitting the mark. In addition to these teaching assistants, there are other avenues we plan to add significant value for our customers through the use of AI.

Understanding the customer

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Disclosure: We are long AUUA including recent purchases around $3.

The SmallCap Discoveries 2025 conference was an excellent event. It is not very often that you get to spend a few days in a room filled with great management teams and investors.

But the important question is, were there companies worth investing in?

There were many interesting companies, but we are focusing on a few that we spent time with and think are at a particularly interesting juncture. The list this year is long enough that we are breaking it up into three groups:

• Cannabis Corner

• The Scalers

• Fallen Darlings

Here is part 2.

Disclaimer - The content contained in this blog represents the opinions of contributors. You should assume contributors have positions in the securities discussed, whether long, short, or somewhere in between, and that this creates an obvious bias and conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance whatsoever and are subject to certain risks, uncertain risks, and other factors. Information might also be completely out of date and may or may not be updated. In addition, no one guarantees the accuracy of any information provided and none of the information should be construed as investment advice or any other kind of advice under any circumstance, and the blog is a blog and not a registered investment advisor or broker in any jurisdiction. Frankly, no information here should be used for any purpose, except for entertainment (and we hope you enjoy).

Part 2: The Scaler

We originally planned to write about a few of the companies we call Scalers, those who potentially have very long runways, but decided to focus down on the one we have the highest conviction of: Aluula Composites Inc. TSX:AUUA, which we profiled as part of our SmallCap Discoveries 2025 overview.

We note that ALUULA is also presenting at Planet MicroCap this coming week in Toronto. See our full coverage of that conference here -

Canadian Value Investors’ Substack

Planet MicroCap Toronto 2025 Cheatsheet

Here we go! Another fantastic investing conference is coming up next week. Planet MicroCap is hosting its Toronto Showcase on October 21–23, 2025 in partnership with MicroCapClub…

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6 months ago · 10 likes · CanadianValueInvestors

ALUULA

The Company develops and manufactures advanced soft composite materials made out of Ultra-High Molecular Weight Polyethylene (UHMWPE). We have been watching this one closely since earlier this year and had a chance to sit down in person with management at the conference. What do you get when you combine a novel fabric technology with a new hard charging yet humble CEO? It might be something quite special.

To be clear, this is quite different than most of our other investments, though if you look at our post history you will quickly come to the conclusion that our portfolio is an eclectic group (things like canned vegetables, gold storage, real estate, valves, and fancy moving movie theatre chairs). Normally we focus on mispriced high free cash flow companies; ALUULA is just about at breakeven. However, we view them at an inflection point driven by their new CEO combined with runway that could be much longer than anything else we own. As part of our portfolio, we view this opportunity as a reasonable bet.

Its proprietary fabrics with names like Aeris™, Gold™, and Durlyte™ are used in high-performance applications. They were first used in windsports, then outdoor gear (think ultra-light backpacks), and now there is a growing list of pilot and commercial tests across aerospace, defense, and industrial markets.

Key points

• The materials are composite 100% Ultra-High Molecular Weight Polyethylene (UHMWPE). This has a significant advantage over other fabrics given no adhesives or stitching required. The initial use was in kite sails, where it is lighter, stronger, and more resistant to UV than the alternatives (see North Orbit example below).

• A new CEO, Sage Berryman, replaced the founding entrepreneurial management team (they are still involved and have significant ownership). She has been doing the right things.

• The strategy is to build branded product (GORE-TEX) and multiple uses like consumer goods and also industrial/defense. Customers are already required to label products with the ALUULA brand. (see new product use strategy).

• They are professionalizing while expanding into commercial channels. They have successfully piloted making standard 1.5m fabric widths used in many commercial settings, vs their initial ~1m width.

• Quarterly sales just reached the highest level ever despite having a marketing budget near zero. Their initial facility is now effectively at capacity with backlog now greater than the latest quarter sales. They are potentially at an inflection point with significant product pilots ongoing as we get into.

Aluula - A brief history

ALUULA was a start up in Victoria, BC. In 2017 the founders pushed to replace Dacron, a DuPont polyester product, with a lighter, stiffer textile, and they developed a glue-free fusion process that bonds UHMWPE fibers and films into a mono-material laminate. The company formally launched in July 2019 with its first product, ALUULA Gold.

For those wondering, alula is the latin word for little wing and refers to the free moving “thumb” modern birds have that helps maintain lift at low speeds. They added a U. The name seems quite fitting for where they started.

Material background

Technical explanation: It is a composite 100% Ultra-High Molecular Weight Polyethylene (UHMWPE) material and takes a woven UHMWPE fabric (warp/weft) that is fusion-bonded (no adhesive) to biaxially-oriented polymer films on one or both faces.

Simple explanation: They take a polyethylene fabric sheet and bond it to a polyethylene film through a combination of heat, pressure, and time without any adhesives. The benefits being:

• This process makes the product very strong and waterproof, with a significant advantage over other fabrics given no adhesives or stitching required.

• It has high tear resistance and very lightweight, with excellent strength/weight.

• It does not require additional chemicals/processing, making it PFAS free.

• Recycle-ready given it is a mono-fabric with an absence of adhesives. We note we are skeptical of the practical ability to recycle smaller consumer products like backpacks given they are not mono-fabric products (zippers, etc) and are small/hard to gather to process, but we view recyclability as a significant advantage for large-scale industrial uses.

• Importantly, they have a number of patents, with most going to the late 2030s. An example of one of their earlier patents. https://patents.google.com/patent/US11590729B2/en They also continue to file, such as this one from January https://worldwide.espacenet.com/publicationDetails/biblio?II=0&ND=3&adjacent=true&FT=D&date=20250130&CC=US&NR=2025034801A1&KC=A1#

Example use: North Orbit Ultra vs Orbit Pro

To give you a tangible example of what this all means, we have put together a comparison of North Action Sports’ ALUULA product versus a cheaper, lower performance option, but still premium. ALUULA does not manufacture products, only the material. Note the ALUULA branding on the Ultra, a requirement of the Company similar to what GORE-Tex does. For context, ALUULA gold (GC-82 specifically) is less than half the weight of a typical cotton t-shirt on a grams per square meter (GSM) basis.

https://northactionsports.com/products/orbit-ultra-kite

https://northactionsports.com/products/orbit-pro-kite-2025

https://aluula.com/gold/

The original ALUULA material. Engineered to be light and stiff.

We designed a high modulus outer film and fused it to our ultra-strong ALUULA Core™ to make ALUULA Gold™ the strongest and lightest fabric on the market. Designed specifically for watersports, this was the fabric that started it all.

At a premium price, it will not takeover the market but is filling a gap at the ultra-premium end of the spectrum. Another example is backpacks for those that put a premium on lightness.

“Meet the Arcteryx Alpha SL 30, the brand’s lightest technical alpine pack to date, tipping the scales at just 428g (or 316g stripped down). Designed for climbers but ideal for minimalists, this featherweight 30L pack is built with ALUULA Graflyte, a next-gen material stronger than steel by weight and completely waterproof.

https://www.blessthisstuff.com/stuff/wear/bags-luggage/arcteryx-alpha-sl-30-backpack/

The Reset

From our perspective, it appears that the entrepreneurial founding team really did create a good product. However, it was a start up and their focus was on wind sports, and this flowed through their decision-making process in target products, sales strategy, and the design of their plant. The key for us is the reset.

Sage Berryman was hired as CEO in February 2024. She then began resetting the management team and is ~90% new under Sage; new chief commercial officer, new science officer, new director of manufacturing. Wind sports remains key, but now other uses are being tested and progress is being made.

Operations – growing up

ALUULA is targeting a 40-45% gross margin and has been able to achieve that even at this small scale. However, the real question is all in cost including all facility overhead, general overhead, capex, and ability to scale.

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Here we go! Another fantastic investing conference is coming up next week. Planet MicroCap is hosting its Toronto Showcase on October 21–23, 2025 in partnership with MicroCapClub.

The list of companies presenting is great, but it is also a bit long at 77 in total. How do you get up to speed? To help, we put together the following summaries outlining financial performance and recent developments of every company attending. It is presented in alphabetical order. We hope you find this helpful and even if you cannot attend, this is a great list of companies to dig into. We have also put together a printable version for our full subscribers at the bottom of this page.

We also covered the best West Coast Canadian investing event just last month - see our SmallCap Discoveries Vancouver 2025 summary here: https://www.canadianvalueinvestors.com/p/smallcap-discoveries-conference-vancouver-2025

Let’s dig in!

Attendees as of October 13th (subject to change).

Adcore Inc. (TSX: ADCO)

Adcore provides performance marketing technology and agency services that help advertisers automate and optimize campaigns across channels such as Google, Meta, Microsoft, and e-commerce marketplaces. Its platform stack (including automation, bid/rule engines, and data feeds) targets SMBs and agencies looking to scale ROAS efficiently, complemented by managed services for campaign strategy and execution.

In 2025, Adcore has emphasized pipeline expansion in North America and EMEA, with continued development of its automation suite to address rising acquisition costs and privacy changes.

Aluula Composites Inc. (TSXV: AUUA)

Aluula develops ultra-light, high-strength, and recyclable soft composite materials used in windsports, outdoor gear, sailing/maritime, and industrial applications. The company’s films and fabrics (e.g., Aeris™, Gold™, Durlyte™) aim to replace laminated textiles by delivering superior strength-to-weight ratios, abrasion/UV resistance, and circularity.

In 2025, Aluula has advanced commercialization and financing. It reported stronger mid-year momentum with improving gross margins, closed near-full warrant exercises for additional capital, and continued diversifying beyond windsports into performance outdoor, maritime, and defense.

Andrew Peller Limited (TSX: ADW.A)

Andrew Peller is a leading Canadian vintner, producing and marketing wines, RTDs, and spirits through brands such as Peller Estates, Trius, Wayne Gretzky, and more. It operates wineries, hospitality venues, and distribution across Canada, with a mix of own retail, provincial liquor boards, and on-premise channels.

In 2025, the company has shown margin recovery and earnings improvement, reporting a stronger fiscal Q1-2026 (quarter ended June 30, 2025) with higher gross margin and positive net income versus a loss a year earlier. The company has kept dividend payments in place while signaling ongoing focus on cost discipline and brand mix optimization.

Atlas Salt Inc. (TSXV: SALT)

Atlas Salt is advancing the Great Atlantic Salt Project in western Newfoundland, a proposed underground rock-salt mine positioned to supply eastern North American de-icing markets. The project targets low-cost bulk production with marine access, leveraging proximity to key demand centers.

In 2025, Atlas has progressed project de-risking and corporate housekeeping. The company communicated timing and then results of an updated feasibility study for Great Atlantic.

Auxly Cannabis Group Inc. (TSX: XLY)

Auxly is a Canadian consumer packaged goods cannabis company with a portfolio spanning vapes, pre-rolls, edibles, and beverages, supported by internal cultivation and processing. Its brand architecture targets mainstream value and mid-premium segments, with national distribution through provincial boards.

In 2025, Auxly has highlighted record profitability, noting leading share positions in certain categories and brands. The company continued balance-sheet cleanup and debt reduction, and outlined priorities around cash generation, market share, and disciplined innovation.

Aytu BioPharma, Inc. (NASDAQCM: AYTU)

Aytu BioPharma develops and commercializes prescription therapeutics addressing pediatric and pediatric-onset conditions, with a portfolio spanning both commercial products and late-stage development assets. The business emphasizes focused specialty sales coverage and lifecycle management.

In 2025, management has continued to emphasize operating discipline and capital allocation to support late-stage assets and targeted commercial execution.

Baylin Technologies Inc. (TSX: BYL)

Baylin designs and manufactures wireless antenna and RF components through brands such as Galtronics, serving mobile devices, networking/CPE, infrastructure, and IoT/embedded markets. It operates design centers and manufacturing across North America, Asia, and Europe.

In 2025, Baylin announced successful live-network trials with a Tier-1 European carrier for next-gen dual-band antennas and continued to highlight multi-year design wins tied to Wi-Fi 7 gateways and extenders.

BioRem Inc. (TSXV: BRM)

BioRem provides biofiltration and air-emissions abatement systems for municipal and industrial clients, integrating engineered media and turnkey solutions to remove odors and VOCs. Its backlog and installed base span North America and international markets.

In 2025, BioRem has reported continued record backlog levels following a strong 2024 and delivered Q2 results showing growth in revenue and EBITDA alongside an approved normal course issuer bid. Management emphasized execution on large municipal/industrial projects and disciplined capital deployment.

BluMetric Environmental Inc. (TSXV: BLM)

BluMetric is an environmental engineering and water technology firm providing consulting, remediation, and turnkey water/wastewater systems to government, defense, mining, and industrial clients. It combines services with proprietary systems for potable, process, and contaminated water.

In 2025, BluMetric posted Q3-2025 results and advanced defense-sector initiatives, signing an MoU with DNG Defence to collaborate on sovereign, sustainable solutions. The company is emphasizing a healthy pipeline across government and industrial verticals and continued operating discipline.

BQE Water Inc. (TSXV: BQE)

BQE Water designs, implements, and operates mine-water treatment solutions, including SART and Sulfide-based processes, delivering metals recovery and water compliance for mining companies globally. Revenue is generated from engineering, plant operations, and performance-based contracts.

In 2025, BQE has announced its third SART plant in China entering full production, expanding its operating footprint.

BranchOut Food Inc. (NASDAQCM: BOF)

BranchOut produces dehydrated fruit and vegetable snacks and ingredients using proprietary GentleDry™ technology, supplying both branded CPG products and bulk ingredients to retailers and food manufacturers. The company’s model blends private-label, wholesale, and branded channels.

In 2025, BranchOut continues to expand retail placements and scale production to meet growing private-label demand, while updating investors on capacity additions and distribution wins. Management emphasized focus on gross-margin expansion through automation, SKU mix, and long-term supply contracts.

BuildDirect.com Technologies Inc. (TSXV: BILD)

BuildDirect operates a digital-first marketplace for home-improvement products, primarily flooring, serving pros and homeowners through an omnichannel model with regional warehouses and last-mile delivery. The company complements marketplace listings with owned-brand offerings.

In 2025, BuildDirect has concentrated on profitability initiatives including rationalizing SKUs, optimizing freight/fulfillment, and expanding pro-contractor engagement while communicating quarterly results that highlighted improved gross margin dollars and opex discipline.

California Nanotechnologies Corp. (TSXV: CNO)

Cal Nano provides advanced materials engineering services, specializing in spark plasma sintering (SPS) and cryogenic milling to produce high-performance metals, ceramics, and composites for aerospace, defense, energy, and semiconductors. Revenue comes from R&D services, parts production, and equipment.

In 2025, Cal Nano has reported sustained backlog growth and additional multi-phase programs with Tier-1 customers, supported by capacity expansions around equipment and shifts. The company highlighted higher-margin production work transitioning from prior R&D engagements and continued hiring to support throughput.

Cannara Biotech Inc. (TSXV: LOVE)

Cannara is a vertically integrated cannabis company operating large indoor cultivation facilities in Quebec, selling premium dried flower, pre-rolls, and oils under brands such as Tribal, Nugz, and Orchid CBD. The strategy emphasizes low-cost production with premium quality.

In 2025, Cannara strengthened its balance sheet by selling a non-core property and using proceeds to reduce debt, added a new director to its board, and delivered record operating performance with growing share in key provinces. Management reiterated focus on cash generation, selective innovation, and disciplined capex.

CHAR Technologies Ltd. (TSXV: YES)

CHAR develops high-temperature pyrolysis projects that convert wood and organic residues into biocarbon and renewable gases, serving steelmaking and energy markets seeking decarbonization. The company builds, owns, and operates facilities like the Thorold Renewable Energy facility.

In 2025, CHAR has advanced project financing and partnerships at Thorold, securing strategic equity from BMI Group at the project level and setting the path to initial commercial biocarbon output in late 2025.

Cizzle Brands Corporation (NEOE: CZZL)

Cizzle Brands operates a branded CPG platform focused on cannabis-adjacent and wellness categories, leveraging contract manufacturing and distribution partners. The model targets rapid product iteration and provincial listings without heavy in-house capex.

In 2025, the company has pursued new provincial listings, streamlined SKUs for margin improvement, and refreshed brand/packaging to support retail velocity. Management has emphasized a path to positive cash flow through disciplined operating spend and targeted launches.

Conavi Medical Corp. (TSXV: CNVI)

Conavi develops image-guided technologies for cardiovascular procedures, notably its Novasight Hybrid™ IVUS-OCT system designed to provide simultaneous intravascular ultrasound and optical coherence tomography imaging. The platform targets improved decision-making in PCI and structural heart interventions.

In 2025, Conavi states it has progressed regulatory and commercialization activities, with ongoing clinical collaborations and installations to support adoption ahead of broader market rollout. The company has communicated operating updates around manufacturing readiness and financing initiatives to fund commercialization.

Covalon Technologies Ltd. (TSXV:COV)

Covalon Technologies develops and markets advanced wound care dressings and infection prevention products for hospitals and clinics worldwide. Its portfolio includes antimicrobial silicone adhesives, collagen dressings, vascular access line protection, and perioperative skin products designed to reduce infections and improve patient outcomes. The company sells through direct channels and distribution partners, with a growing emphasis on the U.S. market and specialty care settings.

In 2025, Covalon highlighted has favorable U.S. tariff developments that improve competitive positioning for its imported products and margins, and it continued to broaden distribution in key U.S. hospital systems.

CTW Cayman (NASDAQCM:CTW)

CTW Cayman is a mobile and online game developer and publisher known for free‑to‑play titles distributed through web and app channels. The company focuses on live‑ops, user acquisition efficiency, and monetization across Asia and global markets, leveraging data-driven content updates and community engagement to extend game lifecycles.

In 2025, CTW Cayman completed its U.S. listing on the Nasdaq Capital Market. Post‑listing, the company emphasized pipeline launches and marketing investments to scale internationally, while communicating a disciplined approach to user acquisition amid platform privacy changes and competitive intensity across the mobile gaming ecosystem.

Cybeats Technologies Corp. (CNSX:CYBT)

Cybeats Technologies provides software supply chain security solutions, with a focus on Software Bill of Materials (SBOM) management, vulnerability monitoring, and compliance for organizations producing or integrating complex software and firmware. Its SBOM Studio and related modules target regulated and mission‑critical sectors including industrial automation, medical devices, and critical infrastructure.

During 2025, Cybeats has secured and expanded enterprise and government contracts including wins in industrial automation and renewals with a U.S. government security agency while rolling out new AI‑enabled features to automate vulnerability triage and asset intelligence across IT and OT environments. The company also reported year‑over‑year revenue growth with improving operating losses and completed equity financing under the LIFE exemption to support sales expansion and product development.

DAVIDsTEA Inc. (OTCPK:DTEA.F)

DAVIDsTEA is a specialty tea and beverage retailer offering a wide assortment of loose‑leaf teas, blends, and accessories through e‑commerce and a focused store footprint in Canada. The brand emphasizes seasonal innovation, wellness‑oriented blends, and direct‑to‑consumer engagement via subscription, loyalty, and digital marketing.

In 2025, the company has continued executing on simplification and online growth initiatives. The year was marked by the passing of founder Herschel Segal, with management reiterating strategic priorities around product innovation, fulfillment efficiencies, and cost discipline ahead of second‑quarter earnings in September.

Decibel Cannabis Company Inc. (TSXV:DB)

Decibel Cannabis is a vertically integrated Canadian cannabis company focused on premium flower and derivative products under brands such as Qwest and General Admission. Operations span cultivation, processing, and manufacturing, complemented by domestic wholesale and growing international export channels.

Through 2025, Decibel executed on international expansion and integration initiatives, including expanded export programs and the contribution from a recently acquired EU‑GMP facility supporting overseas sales. Management provided 2025 guidance emphasizing revenue and EBITDA growth, reported covenant compliance, and highlighted brand momentum domestically; equity incentives were granted early in the year to align employees with long‑term objectives.

DIRTT Environmental Solutions Ltd. (TSX:DRT)

DIRTT Environmental Solutions designs and manufactures prefabricated, software‑driven interior construction systems for commercial, healthcare, education, and public spaces. Its ICE® technology links design directly to manufacturing, enabling rapid, customizable, and sustainable build‑outs with reduced waste and lifecycle costs.

In 2025, DIRTT has reported mixed quarterly results amid tariff and macro pressures but continued to build its sales pipeline, adding multi‑million‑dollar projects and new product certifications, including fire‑rated walls that open additional verticals.

Dr. Phone Fix Canada Corporation (TSXV:DPF)

Dr. Phone Fix is a Canadian consumer tech services company specializing in smartphone and electronics repair, device refurbishment, and retail sales of accessories and certified pre‑owned devices. The company operates a growing store network complemented by partnerships with carriers, OEMs, and corporate clients.

In 2025, Dr. Phone Fix reported improved quarterly results with revenue growth and positive operating trends, citing expanding strategic partnerships that increased device intake and service volumes. The company announced a non‑brokered private placement to fund network expansion and working capital, while continuing to onboard enterprise clients for repair and trade‑in programs across Canada.

Edgewater Wireless Systems Inc. (TSXV:YFI)

Edgewater Wireless develops Wi‑Fi Spectrum Slicing™ technology and multi‑channel access point solutions designed to improve capacity, latency, and interference management in high‑density environments. The company licenses its technology and works with chipset partners and service providers to integrate spectrum slicing into next‑generation Wi‑Fi networks.

In 2025, Edgewater advanced commercialization with technical milestones, partner demonstrations, and investor outreach, and reported fiscal 2025 results focusing on cost actions to extend runway, noting it has positioned Spectrum Slicing for Wi‑Fi 7 era deployments and expanded proof‑of‑concept activity with ecosystem partners.

EMERGE Commerce Ltd. (TSXV:ECOM)

EMERGE Commerce operates a portfolio of digital commerce brands in North America across subscription and marketplace verticals, with current focus areas in grocery and golf. The model centralizes shared services to drive scalable, multi‑brand unit economics.

In 2025, EMERGE reported improved quarterly results with year‑over‑year revenue growth and stronger adjusted EBITDA as cost‑reduction programs took hold.

EnWave Corporation (TSXV:ENW)

EnWave develops and licenses Radiant Energy Vacuum (REV™) dehydration technology used by food and pharmaceutical producers to dry products rapidly at low temperatures. The business model combines machine sales with royalties from licensees commercializing REV™ products.

In 2025, EnWave posted a sharp year‑over‑year improvement in quarterly revenue and gross margins, driven by large‑scale machine deliveries and higher royalty income. The company completed a fully subscribed LIFE private placement in August to accelerate fabrication of additional REV™ units and subsequently released third‑quarter results and hosted an investor call as demand indicators for new systems strengthened.

Finseta Plc (AIM:FIN)

Finseta is a UK‑based foreign exchange and payments platform serving SMEs and high‑net‑worth clients with multi‑currency accounts, cross‑border payments, and embedded corporate FX solutions. The company operates regulated payments infrastructure and a proprietary front‑end for customer onboarding and risk controls.

In 2025, Finseta reported mid‑teens revenue growth for the first half on rising active customers and transaction volumes, expanded into new markets including the UAE and Canada, and maintained product investment in platform features. Subsequent guidance updates tempered full‑year expectations, which weighed on shares, as management has prioritized margin discipline and scalability ahead of further geographic rollout.

Firan Technology Group Corporation (TSX:FTG)

Firan Technology Group designs and manufactures high‑reliability printed circuit boards and cockpit display products for aerospace and defense customers. Its FTG Circuits and FTG Aerospace divisions serve commercial, business, and military aviation programs globally.

In 2025, FTG has delivered sequential and year‑over‑year growth and reported third‑quarter results highlighting margin improvement and strong cash generation. The company continued capacity investments, progressed certifications, and advanced integration initiatives to support backlog execution across key aerospace platforms, while maintaining a disciplined capital allocation framework.

Fortune Bay Corp. (TSXV:FOR)

Fortune Bay is a Canadian exploration and development company advancing gold and uranium projects in Saskatchewan, including the Goldfields gold project and the Murmac uranium project. The company pursues value through resource growth, technical studies, and partnerships on its Athabasca‑area assets.

In 2025, Fortune Bay has advanced technical work on Goldfields, with an updated study supporting an improved project value case amid strong gold prices, and progressed its Murmac uranium joint‑venture program with continued drilling and evaluations.

Golconda Gold Ltd. (TSXV:GG)

Golconda Gold is a junior gold producer and explorer focused on precious metals projects in Africa and the Americas. The company targets production growth and reserve expansion through mine optimization, selective exploration, and disciplined capital allocation.

In 2025, Golconda has continued its operational updates centered on mine planning, cost controls, and grade improvement initiatives while advancing exploration near-mine targets.

Haivision Systems Inc. (TSX:HAI)

Haivision provides mission‑critical video networking solutions including low‑latency encoders/decoders, bonded cellular transmitters, and IP video distribution used in broadcast, enterprise, defense, and public safety. Its technologies power contribution, cloud workflows, and secure real‑time video over wired and wireless networks.

In 2025, Haivision has released product refreshes across mobile transmitters and cloud orchestration, announced customer wins in live sports and government, and highlighted recurring software and services growth in its quarterly updates.

High Tide Inc. (TSXV:HITI)

High Tide operates a retail‑focused cannabis ecosystem in Canada with its Canna Cabana stores, e‑commerce platforms, and accessories distribution. The model emphasizes everyday low prices, loyalty programs, private‑label products, and ancillary revenues.

In 2025, High Tide reported continued same‑store sales growth and new store openings in priority provinces, advanced private‑label and membership initiatives, and communicated ongoing free‑cash‑flow focus. The company refinanced/extended facilities and reiterated priorities around profitability and disciplined expansion.

Hydreight Technologies Inc. (TSXV:NURS)

Hydreight offers a telehealth‑enabled platform that powers mobile, on‑demand health and wellness services for licensed medical professionals across the U.S. The platform integrates clinical governance, e‑prescribing, payments, and compliance with a marketplace for IV therapy and related services.

In 2025, Hydreight has posted year‑over‑year revenue growth with positive adjusted EBITDA in early quarters, launched new white‑label and DTC offerings to support partners in all 50 states, and raised growth capital to scale technology and marketing. Management highlighted expanding practitioner counts and improving unit economics.

iFabric Corp. (TSX:IFA)

iFabric develops and markets specialty textiles and chemical formulations for healthcare, consumer, and industrial applications, including antimicrobial, water‑repellent, flame‑resistant, and performance fabric treatments. Its divisions serve apparel brands, medical textiles, and PPE markets.

In 2025, iFabric has reported progress commercializing new chemistries with brand partners, expanded regulatory clearances for select formulations, and advanced cost initiatives following prior supply‑chain volatility. The company has continued to invest in R&D partnerships and targeted growth in healthcare and performance wear.

Intermap Technologies Corporation (TSX:IMP)

Intermap provides 3D geospatial data, analytics, and elevation‑as‑a‑service solutions used in aviation, insurance, telecom, government, and infrastructure planning. Its offerings include NEXTMap elevation datasets and custom collections/derivatives.

In 2025, Intermap announced multi‑year contract wins and renewals with government and commercial customers, progressed aviation‑charting programs, and emphasized subscriptions/recurring revenue in quarterly communications. The company also advanced large opportunity pursuits in defense and telecom planning.

Intouch Insight Ltd. (TSXV:INX)

Intouch Insight delivers customer experience management solutions, including mystery shopping, auditing, and a SaaS platform for surveys, CX analytics, and compliance. It serves multi‑location enterprises across retail, hospitality, and services.

In 2025, Intouch Insight has highlighted ARR growth, new multi‑year enterprise wins, and expanded upsells to existing customers through additional modules. The company states it is balancing investment in product roadmap and AI features with operating profitability goals.

Ispire Technology Inc. (NASDAQCM:ISPR)

Ispire designs, manufactures, and distributes branded cannabis vaping hardware and related technologies, with a growing international footprint and white‑label partnerships. The company focuses on quality, reliability, and compliance in regulated markets.

In 2025, Ispire expanded distribution in new U.S. states and international markets, deepened OEM/customer partnerships, and introduced next‑generation devices aimed at performance and safety. Quarterly updates have emphasized gross‑margin improvement initiatives and capacity planning to support demand.

Kidoz Inc. (OTCQB:KDOZ.F)

KIDOZ operates a global contextual mobile advertising network and kid‑safe content platform used by brands and app publishers to reach family and youth audiences. Its technology delivers COPPA/GDPR‑K compliant ads across apps and connected platforms.

In 2025, KIDOZ has reported seasonal strength, added new blue‑chip advertisers, and expanded programmatic integrations to improve fill and yield. The company states it has continued investment in AI‑driven targeting and measurement while maintaining cost controls and positive cash generation in peak quarters.

kneat.com, inc. (TSX:KSI)

kneat.com provides digital validation software for regulated industries such as pharmaceuticals and medical devices, replacing paper‑based validation with configurable e‑workflows, audit trails, and analytics. The platform supports computer system, process, cleaning, and equipment validation at global scale.

In 2025, Kneat sustained high ARR growth, added marquee enterprise customers, and expanded deployments within existing accounts, driving net revenue retention. Management reported improving gross margins, a strong sales pipeline, and continued investments in product, security, and compliance certifications.

LibertyStream Infrastructure Partners Inc. (TSXV:LIB)

LibertyStream invests in and develops energy and infrastructure assets under a returns‑focused model, targeting long‑lived, cash‑generating projects across North America. The platform combines operating expertise with capital markets capabilities.

In 2025, LibertyStream advanced its initial portfolio construction, announced project acquisitions/partnerships, and established credit facilities to support transactions. The company provided first‑year guidance tied to project cash yields and targeted distributions as assets ramp.

McCoy Global Inc. (TSX:MCB)

McCoy Global supplies torque/tong systems, data analytics, and automation solutions for tubular running services in the energy industry, with a growing smartProduct line that enhances safety and accuracy at the wellsite.

In 2025, McCoy reported double‑digit revenue growth with strong smartProduct adoption, improved gross margins, and solid cash generation. The company maintained dividends, invested in product development, and expanded international sales channels to support backlog conversion.

Medexus Pharmaceuticals Inc. (TSX:MDP)

Medexus is a specialty pharma company commercializing rare‑disease and specialty medicines in North America, spanning hematology, oncology, rheumatology, and pediatrics. It leverages focused sales teams and in‑licensing to build its portfolio.

In 2025, Medexus has delivered record quarterly revenue and EBITDA from its core franchises, advanced label and lifecycle initiatives, and refinanced debt on improved terms. The company also reported supply stabilization and pursued business development to add near‑term accretive assets.

Medicenna Therapeutics Corp. (TSX:MDNA)

Medicenna is a clinical‑stage immunotherapy company developing engineered cytokines (Superkines) and immuno‑oncology candidates targeting solid tumors. Its pipeline includes programs designed to enhance anti‑tumor immunity while minimizing toxicity.

In 2025, Medicenna reported clinical progress across lead assets with updated data readouts at oncology conferences, initiated/expanded studies in combination settings, and strengthened its balance sheet through equity financing and non‑dilutive grants. The company continued partnering discussions to support late‑stage development.

NamSys Inc. (TSXV:CTZ)

NamSys provides cloud software for currency management, including smart-safe, cash‑in‑transit, and vault automation systems used by banks, retailers, and cash logistics providers. Its SaaS solutions improve visibility, reconciliation, and route optimization.

In 2025, NamSys has grown ARR via new wins in North America and international markets, released product enhancements for analytics and APIs, and maintained profitability and cash generation.

NeuPath Health Inc. (TSXV:NPTH)

NeuPath operates a network of clinics focused on chronic pain, concussion, and musculoskeletal care, offering interdisciplinary treatment and employer/insurer services. The company combines clinical services with diagnostics and rehabilitation programs.

In 2025, NeuPath appointed new senior leadership to accelerate execution, secured expanded credit facilities, and reported year‑over‑year revenue and EBITDA growth with improved clinic utilization. Management has highlighted pipeline acquisitions/clinic expansions and continued operational efficiency initiatives.

New Horizon Aircraft Ltd. (NASDAQCM:HOVR)

New Horizon Aircraft (Horizons) is an advanced air mobility company developing hybrid‑electric vertical takeoff and landing (eVTOL) aircraft aimed at regional transport and logistics. The design targets lower operating costs and extended range versus battery‑only eVTOLs.

In 2025, the company has advanced subscale and component testing, progressed certification engagement with regulators, and announced strategic partnerships for propulsion and avionics.

NewLake Capital Partners, Inc. (OTCQX:NLCP)

NewLake Capital is a cannabis real estate investment trust that acquires, owns, and manages industrial properties leased to state‑licensed operators under long‑term, triple‑net leases. The portfolio generates predictable rental income with embedded escalators.

In 2025, NewLake has maintained high occupancy and collected contractual rent, executed selective sale‑leasebacks and tenant improvements, and repurchased shares under its buyback authorization. The REIT has emphasized conservative leverage and dividend coverage in its quarterly communications.

NexLiving Communities Inc. (TSXV:NXLV)

NexLiving acquires and operates multi‑family residential properties in secondary markets, focusing on modern, affordable rentals with high occupancy and low turnover. The strategy pairs disciplined acquisitions with active asset management and a sustainable dividend.

In 2025, NexLiving has delivered strong FFO growth, expanded its portfolio with additional units, and continued share repurchases under its NCIB. The company has noted improved operating efficiency, stabilized occupancy above 97%, and modest rent growth through suite upgrades.

Nova Leap Health Corp. (TSXV:NLH)

Nova Leap provides home health care services across the U.S. and Canada, focusing on personal care, skilled nursing, and dementia care. Growth is driven by acquisitions and organic initiatives within fragmented local markets.

In 2025, Nova Leap has completed additional tuck‑in acquisitions in select states, reported sequential revenue growth and improved EBITDA margins.

NowVertical Group Inc. (TSXV:NOW)

NowVertical delivers data analytics and software solutions for enterprise and government clients, offering vertical‑specific applications and services across security, marketing, and operations. The company blends SaaS products with consulting to drive outcomes.

In 2025, NowVertical has stated it continues to streamline its portfolio, exiting non‑core operations, and focused on higher‑margin contracts, which contributed to improved adjusted EBITDA.

NTG Clarity Networks Inc. (TSXV:NCI)

NTG Clarity provides digital transformation, software development, and network engineering services to telecom, financial services, and public‑sector clients, leveraging blended onshore/offshore delivery and its NTGapps platform.

In 2025, NTG has reported record quarterly revenue, announced sizable new purchase orders and contract extensions in the Middle East, and raised growth capital under a LIFE financing to scale delivery. Management has increased hiring to meet demand.

NXT Energy Solutions Inc. (OTCQB:NSFD.F)

NXT Energy offers SFD® (Stress Field Detection) airborne geophysical surveys that help energy companies identify potential subsurface traps for hydrocarbons and geothermal resources. The proprietary method aims to reduce exploration risk and costs.

In 2025, NXT announced new survey contracts and progressed repeat work with prior customers, while pursuing geothermal and carbon‑storage applications. The company stated it has implemented cost controls and sought strategic partnerships to expand commercialization globally.

Omni-Lite Industries Canada Inc. (TSXV:OML)

Omni‑Lite designs and manufactures precision, cold‑formed metal components and assemblies for aerospace, defense, and industrial customers, emphasizing lightweight, high‑strength parts. It operates advanced forming and machining capabilities in North America.

In 2025, Omni‑Lite has booked new aerospace and defense awards, invested in capacity and automation to support backlog, and delivered margin improvement initiatives in quarterly updates. The company continued its shift toward higher‑value programs and long‑term agreements.

Peraso Inc. (NASDAQCM:PRSO)

Peraso is a fabless semiconductor company specializing in mmWave (60/28 GHz) wireless chipsets and modules used in fixed wireless access, consumer electronics, and industrial applications. Its technology enables multi‑gigabit connectivity at low latency.

In 2025, Peraso has introduced new reference designs and customer platforms, secured design‑in wins for FWA and consumer peripherals, and prioritized gross‑margin improvement through portfolio focus.

Perimeter Medical Imaging AI, Inc. (TSXV:PINK)

Perimeter Medical develops optical coherence tomography (OCT) imaging tools with AI decision support for real‑time margin assessment during breast‑conserving surgery. The platform aims to reduce re‑operation rates and improve patient outcomes.

In 2025, Perimeter has advanced its pivotal clinical study, expanded clinical sites, and reported interim adoption feedback from early users. The company stated it has strengthened its balance sheet through equity/grant funding and progressed reimbursement and commercialization groundwork in the U.S.

Playboy, Inc. (NASDAQGM:PLBY)

Playboy is a lifestyle and entertainment brand that monetizes IP across digital, creator platforms, and consumer products, including licensing, e‑commerce, and collaborations. The company is repositioning toward asset‑light, brand‑led growth.

In 2025, Playboy has continued its restructuring to streamline operations, executed licensing partnerships, and prioritized digital subscriptions and creator monetization. Management is focused on debt reduction efforts and asset sales designed to simplify the capital structure.

Progressive Planet Solutions Inc. (TSXV:PLAN)

Progressive Planet develops low‑carbon mineral products for cement, agriculture, and environmental applications, leveraging pozzolans, zeolites, and glass‑based technologies to reduce CO₂ intensity and enhance performance.

In 2025, the company secured non‑dilutive funding for a PozGlass™ pilot, advanced pilot‑plant procurement, and expanded its raw‑material position. It introduced new product lines including lightweight litter and progressed commercialization partnerships while granting equity incentives tied to execution milestones.

Reklaim Ltd. (TSXV:MYID)

Reklaim operates a privacy‑centric data platform that enables consumers to control and monetize their data while providing compliant audience segments and solutions to advertisers. The company also offers a subscription consumer privacy service.

In 2025, Reklaim has reported record quarterly revenue growth driven by platform sales, launched Reklaim Protect as a recurring subscription, and reduced debt through debenture repayments. It introduced a consumer ownership program to deepen engagement and broaden distribution channels.

ReVolve Renewable Power Corp. (TSXV:REVV)

ReVolve develops, owns, and operates renewable energy assets across wind, solar, battery storage, and run‑of‑river hydro, with a hybrid model of selling development projects and building an operating portfolio.

In 2025, ReVolve has increased quarterly revenue and turned profitable as operating assets scaled, raised equity under a LIFE financing to fund growth, and signed agreements to acquire additional operating capacity.

Royalty Pharma plc (NASDAQGS:RPRX)

Royalty Pharma acquires biopharmaceutical royalties and funds innovation by providing capital to R&D organizations in exchange for royalty interests on blockbuster therapies. Its diversified portfolio spans multiple therapeutic areas and stages.

In 2025, Royalty Pharma has deployed capital into new royalty transactions, refinanced portions of its debt at attractive rates, and reaffirmed guidance with growth driven by key marketed assets. The company has continued to return capital via dividends and buybacks while maintaining a pipeline of potential deals.

Rubicon Organics Inc. (TSXV:ROMJ)

Rubicon Organics is a Canadian producer of premium, organic‑certified cannabis, offering flower, pre‑rolls, and oils across provincial markets. The company focuses on quality, brand building, and operational efficiency.

In 2025, Rubicon has reported year‑over‑year revenue growth, closed a financing to support its recently acquired second facility and to scale premium production.

Rumbu Holdings Ltd. (TSXV:RMB)

Rumbu Holdings is building a network of funeral homes, crematoriums, and aquamation services across Western Canada through acquisitions and operational improvements. The platform partners with local operators to ensure continuity and community presence.

In 2025, Rumbu has continued M&A activity to add locations, and reported improving run‑rate revenues and integration progress. Shares reached new highs as the company advanced its pipeline and standardized operations across the portfolio.

Sabio Holdings Inc. (TSXV:SBIO)

Sabio provides connected TV (CTV) and mobile advertising solutions, combining a DSP, analytics, and proprietary audience data to help brands reach diverse consumers across screens.

In 2025, Sabio has expanded CTV client wins, improved gross margins through supply path optimization, and rolled out AI tools for creative and measurement. They state they are focused on operating profitability and cash generation while investing in sales coverage.

Sangoma Technologies Corporation (TSX:STC)

Sangoma delivers unified communications and contact center solutions across cloud and on‑premises deployments, complemented by hardware, software, and managed services for SMBs and mid‑market enterprises.

In 2025, Sangoma has reported sequential revenue growth in core platforms, generated strong free cash flow enabling debt reduction, and maintained adjusted EBITDA margins near target levels. The company states they have de‑emphasized lower‑margin third‑party resales in favor of higher‑value offerings.

Sylogist Ltd. (TSX:SYZ)

Sylogist provides mission‑critical ERP and CRM software solutions to public‑sector and non‑profit organizations, delivered primarily as SaaS with long‑term recurring revenue.

In 2025, Sylogist has delivered ARR growth with improved profitability, completed tuck‑in acquisitions to expand its vertical suite, and initiated a refinancing that lowered interest expense. The company states it has continued product modernization and cross‑sell within its installed base.

Tantalus Systems Holding Inc. (TSX:GRID)

Tantalus delivers smart grid solutions—including AMI, grid sensors, and utility data platforms—that help public power utilities improve reliability, efficiency, and DER integration.

In 2025, Tantalus has expanded deployments with municipal and cooperative utilities, grown software and analytics revenue, and introduced new grid edge devices to support EV and solar adoption. The company has reported backlog growth and improving gross margins.

Thermal Energy International Inc. (TSXV:TMG)

Thermal Energy provides industrial energy‑efficiency and emissions‑reduction solutions including heat recovery systems and GEM™ steam traps, delivering turnkey projects to global manufacturers.

In 2025, the company has secured new multi‑site contracts across food & beverage and industrial customers, increased order intake and backlog, and highlighted margin expansion on recent installations.

Tigo Energy, Inc. (NASDAQCM:TYGO)

Tigo provides solar module‑level power electronics, monitoring, and safety solutions, including TS4 optimizers and rapid shutdown devices for residential and commercial PV systems.

In 2025, Tigo has introduced product updates to enhance reliability, expanded distribution in key regions, and emphasized cost reduction and cash discipline in quarterly results.

TRX Gold Corporation (TSX:TRX)

TRX Gold is a gold producer advancing and expanding the Buckreef Gold Project in Tanzania, combining open‑pit production with ongoing resource development to scale output and mine life.

In 2025, TRX has increased plant throughput and gold production, progressed drilling to expand resources, and advanced studies for further expansion phases.

Turnium Technology Group Inc. (TSXV:TTGI)

Turnium offers software‑defined wide area networking (SD‑WAN) solutions delivered through a channel‑first model to service providers and enterprises, enabling resilient, optimized connectivity.

In 2025, Turnium has signed new service‑provider partnerships, expanded ARR from existing channels, and launched feature upgrades focused on security and cloud access.

Upexi, Inc. (NASDAQCM:UPXI)

Upexi operates a portfolio of consumer brands across wellness, pet, and household categories, leveraging Amazon/e‑commerce channels, in‑house marketing, and data analytics to scale sales.

VersaBank (TSX:VBNK)

VersaBank is a digital‑only Canadian Schedule I bank offering specialized commercial lending, structured finance, and deposit solutions, as well as cybersecure digital vault technology through DRT Cyber.

In 2025, VersaBank has expanded its point‑of‑sale financing and BaaS partnerships, and improved NIM while maintaining strong capital ratios.

VerticalScope Holdings Inc. (TSX:FORA)

VerticalScope owns and operates a portfolio of enthusiast community websites and marketplaces across automotive, powersports, and hobbyist verticals, monetized through advertising, subscriptions, and commerce.

In 2025, VerticalScope has continued to advance its forum modernization and AI tooling, stabilized traffic trends, and expanded commerce integrations. The company delevered through free cash flow and asset optimization.

Westbridge Renewable Energy Corp. (TSXV:WEB)

Westbridge originates, develops, and monetizes utility‑scale solar PV, battery storage, and greenfield renewable projects across North America and Europe. The model emphasizes capital‑light development with asset sales at NTP/RTB stages.

In 2025, Westbridge has advanced multiple projects toward interconnection and permitting milestones, executed project sales/JV options, and expanded its pipeline in key provinces and U.S. states.

Zoomd Technologies Ltd. (TSXV:ZOMD)

Zoomd provides user‑acquisition and performance marketing technology for mobile apps and advertisers, offering a unified platform across media sources with AI optimization.

In 2025, Zoomd has won new enterprise contracts, launched automation features to improve ROAS, and reported improved profitability from cost reductions and mix shift to SaaS.

ZTEST Electronics Inc. (OTCPK:ZTST.F)

ZTEST Electronics focuses on testing and quality‑assurance technologies serving electronics and industrial customers, with solutions that automate complex diagnostic workflows.

In 2025, ZTEST announced a share repurchase program and upgraded its U.S. listing tier to enhance visibility and liquidity.

Downloadable Version

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Disclosure: We own all of the following companies mentioned with recent purchases in all except KITS (we still like them a lot and it remains a top hold).

The SmallCap Discoveries 2025 conference was an excellent event. It is not very often that you get to spend a few days in a room filled with great management teams and investors.

But the important question is, were there companies worth investing in?

Top picks out of the SmallCap Discoveries 2025 cohort

There were many interesting companies, but we are focusing today on a few that we spent some time with and think are at a particularly interesting juncture. The list this year is long enough that we are breaking it up into three groups:

• Cannabis Corner

• The Scalers

• Fallen Darlings

Here is part 1 – Cannabis Corner. We hope you enjoy.

Disclaimer - The content contained in this blog represents the opinions of contributors. You should assume contributors have positions in the securities discussed, whether long, short, or somewhere in between, and that this creates an obvious bias and conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance whatsoever and are subject to certain risks, uncertain risks, and other factors. Information might also be completely out of date and may or may not be updated. In addition, no one guarantees the accuracy of any information provided and none of the information should be construed as investment advice or any other kind of advice under any circumstance, and the blog is a blog and not a registered investment advisor or broker in any jurisdiction. Frankly, no information here should be used for any purpose, except for entertainment (and we hope you enjoy).

Looking back at the 2024 conference - KITS keeps kicking it, our Smallcap Discoveries 2024 top find

From the 2024 cohort, a few companies have done exceptionally well. Our favourite last year was KITS, which we have highlighted and owned since last fall. See our article “”I see the light, and it only cost me $28” - https://www.canadianvalueinvestors.com/p/planet-microcap-vancouver-2024-highlights

The stock is “up” 70% or so, but the more important thing, to us, is that the actual business continues to scale and perform. It remains one of our largest holds.

They continue to grow active customers (as defined below, now over one million), are growing revenue per customer, and have continued without any incremental capital required. Our thesis remains that the business is being run to maximize growth while ensuring it is self-funded. Marketing spend and product promotions are the key levers. We agree with this strategy. Secondly, we think the market is underestimating their ability to scale; the market is huge and they are still a very tiny fish. And despite issues like tariffs and a Canada Post strike, they continue to execute. We look forward to them hitting two million customers.

See full archive here - https://www.canadianvalueinvestors.com/t/kits

Active Customers Definition per Company – “As of the last date of each reporting period, we determine our number of active customers by counting the total number of individual customers who have ordered, and for whom an order has shipped, at least once during the preceding stated period. We introduced this number for a 2-year period to provide greater visibility in measuring our business performance as a 2-year period more closely reflects the frequency of repeat purchases in the eyecare sector. The change in active customers in the reporting period captures both the inflow of new customers and the outflow of customers who have not made a purchase in the stated period.”

SmallCap Discoveries 2025 Recap: Part 1 – Cannabis Corner

Much like Julius Caesar’s decision in 49 BCE to cross the Rubicon with his army, we have crossed the value investing Rubicon into Canadian cannabis. There remains few value-oriented fans of the industry, and for good reason. The Canadian legalization boom was awesome in the traditional sense of the word, with billions of dollars vaporized.

We did not participate in the initial boom and bust. However, as we have written about before, Canadian cannabis appears to be at an interesting inflection point. The effect of years of constrained capital, consolidation, and bankruptcies are starting to show signs through improved product pricing and margins. While many companies in the industry are still struggling, we are focused on the scrappy survivors who we think have interesting set ups.

To be clear, we remain cautious and cannabis remains a relatively small position at a combined exposure less than 10%. Potential issues abound; perhaps additional capacity destroys the pricing improvements we have seen. At this point, we do not think we truly know who “the winners” will be, and so a pooled bet on the best finds is our approach. We have focused down to two producers, Cannara and Rubicon, as well as retailer High Tide, have a small holding in Decibel, and are evaluating others.

We consider Cannara Biotech (East Coast LOVE, our first and larger hold) and Rubicon (ROMJ, our newer, smaller hold West Coast champion) to be premium scrappy operators with different approaches and regional exposure. Decibel is differentiated by its export strategy and exposure as currently Cannara does not seek to export while Rubicon is exploring exports in the future. We do not know if focusing on exports or not is the “right” approach, but it does appear that exports can help all domestic producers by creating a release valve for domestic production.

Where they were

While these names have had a good run this year, we think it is important to understand the full cycle. The entire industry remains well below previous unbelievably frothy levels, but now there is real revenue and cash flow. For Cannara and Rubicon, margins have improved and revenue has continued to increase, albeit more so with Cannara as they ramp up their facility (Rubicon will also soon with their recently purchased facility).

Cannara Cannabis – Our first holding

We had a chance to sit down with Cannara for an update. It was the first company we purchased in the space and our overall exposure remains weighted heavily to it. We will not rehash our previous coverage, but want to remind readers of their Valleyfield asset, as something similar has happened at Rubicon.

Valleyfield was purchased in 2021 from The Green Dutchman’s Organics (subsequently BZAM Ltd.). We note BZAM ultimately failed via a CCAA filing in 2024. The asset was a distressed sale and was a $200MM+ build-out by the end. Cannara acquired it for ~$30MM, well below replacement cost. Our Cannara overview and initial coverage of the industry is here - https://www.canadianvalueinvestors.com/p/the-curious-case-of-canadian-cannabis

After following up with management again, we are increasingly comfortable with their approach. They are laser focused on being a best-in-class operator and continue to (in our view) have a regulatory advantage in Quebec. They have lots of space and continue to open up additional rooms at their facility. Revenue and cash flow should continue to grow accordingly.

Decibel Cannabis

Decibel is the newest name to us, and we are still digesting. Decibel has taken a different approach than both Cannara and Rubicon. Cannara is focused exclusively on Canada, with advantages in Quebec, and Rubicon is focusing on the domestic market as well at least in the interim (currently supply constrained). For Decibel, export markets are a pillar. They are a producer of cannabis and extracts whose roots trace to Westleaf Inc. Westleaf agreed to combine with We Grow BC Ltd. (producer of the Qwest brand) in late 2019.

A key differentiator is their ability to export with their 2024 acquisition of AgMedica. They have EU-GMP (Good Manufacturing Practice) certification. In addition to exporting their own cannabis to markets like Germany, they can also uplift other producers’ production by processing it through their certified facility.

We view Decibel as a bit behind Cannara and Rubicon given their relatively recent transactions, while Cannara and Rubicon have been standalone scrappy companies from the start.

We have a relatively small position and are watching closely.

Rubicon Organics – Scrappy, premium, and heading to the next level

We had a management meeting and facility tour of Rubicon’s Delta B.C. facility. They provided a great update of their branding and facilities and we have put together our key highlights.

Thinking about branding

Rubicon is the largest organic cannabis producer at this scale and focus on premium “B.C. bud”. All steps of their process focus on quality, such as drying harvested plants slowly to protect turpines, and a more labour-intensive process to ensure consistency and quality. New product development and quality is supported by significant testing as well as large consumer studies.

Their brand strategy is thoughtful and breaks down into four separate logical brands:

Read more

Here is a quick update for our subscribers. SmallCap Discoveries is holding their investment conference starting tomorrow, September 29th-30th, in Vancouver, Canada. There is a fantastic selection of companies presenting and we have put together a cheatsheet of every company attending for our readers. Since our original posting on August 28th, a few more companies have been added.

We have added the two public companies below. You can see the full list with every summary linked at the end. We look forward to telling you about our favourites!

Disclaimer - The content contained in this blog represents the opinions of contributors. You should assume contributors have positions in the securities discussed, whether long, short, or somewhere in between, and that this creates an obvious bias and conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance whatsoever and are subject to certain risks, uncertain risks, and other factors. Information might also be completely out of date and may or may not be updated. In addition, no one guarantees the accuracy of any information provided and none of the information should be construed as investment advice or any other kind of advice under any circumstance, and the blog is a blog and not a registered investment advisor or broker in any jurisdiction. Frankly, no information here should be used for any purpose, except for entertainment (and we hope you enjoy).

Two late additions we have added:

Tribe Property Technologies (CVE:TRBE)

Tribe Property Technologies develops technology-enabled solutions for the multi-family residential property sector, integrating software, operations, and services across the lifecycle of a property. Its “Build, Manage, Live” model supports everything from pre and post-construction workflows, property management operations, tenant experience platforms, to service and engagement solutions. The company seeks to digitize and modernize property operations through data, access, and workflow automation.

In May, the company acquired Ace Agencies Ltd., a B.C.-based single‑unit rental property manager. In July, Tribe completed a public unit offering raising ~$5.75MM to fund growth, tech investment, and working capital. In Q2, revenue reached $8.1MM, a 32% increase year-over-year, while adjusted EBITDA losses narrowed.

Cybeats Tchnologies Corp. (TSX:CYBT)

Cybeats Technologies Corp.

Cybeats is a cybersecurity and software supply‑chain security company that focuses on managing and securing Software Bills of Materials (SBOMs). It provides tools and platforms (e.g. SBOM Studio, SBOM Consumer) enabling organizations to monitor, validate, remediate, and manage vulnerabilities across software supply chains, particularly in hardware, embedded systems, IoT, industrial control, and mission‑critical environments. The company positions itself at the intersection of compliance, DevSecOps, and software risk management.

In January, it secured a multi‑year contract with Rockwell Automation, a major industrial automation company, expanding its footprint into the ICS (Industrial Control Systems) vertical. In July, the company announced a “LIFE” private placement led by Beacon Securities to raise capital for scaling its operations and accelerating adoption of its software supply chain security tools.

For the full list see here:

Disclaimer: We own this one with recent purchases at ~$10.

To be clear, we are not gold bugs here at Canadian Value Investors. We might be fretting about inflation… well, we are, and that is a discussion for another day. But, what if there was a gold storage business printing fiat cash, repurchasing a pile of shares, and also owns a pool of marquee UK real estate that roughly equals its current marketcap? Here’s the story of Goldmoney.

The core business has long been precious metals storage and related trading with other ideas/ventures along the way. These generally did not work out, but were not expensive. They pivoted the strategy in 2023 to 1) stop these ventures, 2) reduce exposure to precious metals to reduce performance volatility, and 3 ) opportunistically purchased interesting properties in UK.

While this has been happening, the price of gold has increased significantly, benefiting their gold storage business that earns fees as a percentage of the price of the underlying precious metals.

Our thesis? At current prices ~$10 ~$126MM market cap, the price is undemanding and an asymmetric bet. The real estate portfolio is very likely currently worth roughly this never mind future development opportunities, repurchases are significant, and the storage business could have very real tailwinds with the run up in gold as fees this business earns are a percentage of the underlying precious metal. So, we are long and let us tell you why.

• The strategy reset

• The storage business

• The property business

• Mene

• Thinking about valuation

Disclaimer - The content contained in this blog represents the opinions of contributors. You should assume contributors have positions in the securities discussed, whether long, short, or somewhere in between, and that this creates an obvious bias and conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance whatsoever and are subject to certain risks, uncertain risks, and other factors. Information might also be completely out of date and may or may not be updated. In addition, no one guarantees the accuracy of any information provided and none of the information should be construed as investment advice or any other kind of advice under any circumstance, and the blog is a blog and not a registered investment advisor or broker in any jurisdiction. Frankly, no information here should be used for any purpose, except for entertainment (and we hope you enjoy).

Trying to explain the business

If you pull up Goldmoney in a screen, you would likely be confused immediately. However, the noise can be explained. There are three pieces to the business:

• Goldmoney.com – Precious metals storage business

• Ownership in Mene – Online jewelry store selling 24k gold and platinum investment jewelry. Very weak performance.

• UK real estate

There were other ventures that have been wound down/sold, like Schiff, as we get into later and these decisions seem like the right ones.

The financial statements are presented well we believe, but are noisy given all of the recent changes and the odd mix of business as well as their own precious metals holdings which used to be much larger (~$6MM today). Other noise includes some write offs, and client assets including cash are fully segregated and need to be removed from any analysis.

The strategy reset

The key to understanding Goldmoney is to understand how they got here. Is this scattershot management? We believe it has actually been quite thoughtful and the rationale along the way has been explained by the Company’s key man and founder, Roy Sebang. His background is a value investor turned precious metals / real assets investor. He has previous interviews but has been less active recently. His annual letters are at times quite philosophical and might feel like reading an excerpt from Ayn Rand’s Atlas Shrugged, but the thoughts about the business are grounded.

The key reset and demonstration of a new direction was when they sold Schiff, and then reduced precious metals exposure to buy real estate.This all goes back to 2022/2023:

“Since November of 2022, the Board of Directors has been reviewing strategic options for Schiff Gold that would allow Goldmoney to focus on its core business strategy of generating sustainable earnings per share. Following this strategic review, we have made the decision to return the business to Peter Schiff, from whom we acquired it in 2016, and Peter has agreed to return to Goldmoney the securities which were originally issued to him at that date. We believe this decision will further simplify our operating structure and provide shareholders with a better understanding of our long-term economic results.”

In the 2023 letter – they sold gold for buybacks:

Last year, I mentioned that our goal was to reach $1 a share of precious metals value. By mid-December 2022, we had surpassed this level and decided to crystallize some of our precious metal gains for the rare opportunity to purchase a block of Goldmoney Inc. shares. Over the course of the fiscal year, we realized $10 million of gains on our precious metal position. We reduced the company’s outstanding share count by nearly 8%, while ending the fiscal year with a precious metals position that was, in fiat money terms, slightly higher.

…

No more long shots.

As part of this process to systematize our balance sheet activity, we have made an important decision to rule out new long-shot entrepreneurial activities. We have learned a great deal by building companies in the financial, technology, manufacturing, and asset management space, but just because we can technically do something, doesn’t mean it is worth doing – particularly now in 2023.

And now less metals.

This brings us back to precious metals and the role they will play within the balance sheet side of our business activity. We have been addressing this question: is it still desirable for Goldmoney to have such high allocations to precious metals on our balance sheet?

[changing because of]

I. Generational Shift in Risk-Free Interest Rates - On June 5, 2013, the one-year risk-free interest rate for US dollars was 0.14%. Seven years later, on June 5, 2020, coordinated central bank action in response to Covid-19 artificially forced the one-year risk-free interest rate for U.S. dollars back to 0.14%. Last year on June 5, 2022, the risk-free rate had increased to 2.11% or 17-times greater than the 2020 level. Finally, as I write (June 5, 2023), the one-year rate has held firm trading at 5.22%, double the level of one year ago.

…

In light of this generational shift in interest rates, our new range for the balance sheet capital allocation in precious metals is 20-30%. This would mean that a 20% decline in the precious metals over any given year, would only reduce our projected cash flows by around 30-50%, allowing us to keep compounding, as the metal portfolio bounces back over time. This redeployment of assets is not just a prudent step; it is also timely as explained by the second reason:

2. Radically Changed Investment Landscape

The generational shift in the risk-free interest rate environment has radically changed the investment landscape. There are now significant opportunities that have not existed since 2001 to acquire long-duration real assets. These are assets with contracted inflation-protected cash flows at attractive rates of return that exceed our estimation of long-run inflation.

To be specific, I am speaking of commercial property, infrastructure assets, and, to a lesser extent, farmland. Many of these real assets, which form the built-up environment that powers the real and service economies, are now priced at unlevered yields that provide a payback in under 10 years.

I have been waiting my whole career for the investment landscape that is now upon us. For the first time in decades, investors with liquidity can acquire real assets at attractive real yields without needing to develop an exit strategy. At Goldmoney, we are now ready to make such investments and have spent much of the past year preparing the corporate infrastructure to make them.

And this resulted in the launch of:

Goldmoney Properties Limited

In May of 2023, we prepared the foundation for investing in the UK property market through the establishment of our wholly owned subsidiary, Goldmoney Properties Limited.

We seek opportunities where, upon acquisition, the value of the contracted income stream is greater than 80% of the property’s acquisition price. Such opportunities, as I have already mentioned, have not existed for more than two decades. We will be acquiring physical assets that are difficult to replace and which provide Goldmoney with long-term exposure to the real economy, either through specific tenants, or via regional markets that benefit from unique natural fundamentals.

…

The UK is the only western economy that meets our 25-year investment horizon. Because of 1) Food Economy 2) Independent Central Bank and Fiat Currency and 3) Rule of Law and Liquid Markets for Real Assets. [See his letter for a detailed explanation]

And also did a reverse split.

Reverse Split

The Board of Directors has decided to enact a reverse split of our common shares by a ratio of 1:5. We have been contacted by institutional investors who are precluded from investing in our shares because the share price is below $5.

Expectations? $20MM a year in CF.

The biggest opportunity in Fiscal 2024 will be the establishment of a new income stream for Goldmoney Inc. that grows our group’s long-run earnings power above the sustainable level, which I personally believe to be circa $10 million a year. This is based on the assumption of long-run adjusted earnings for our operating businesses minus precious metal revaluation gains. It is our hope that within three years, further capital deployment will result in an additional $10 million of sustainable earnings power from Goldmoney Properties Limited. This is based on the assumption that we deploy up to 70% of our liquid tangible capital in real assets that will provide us with a second stream of inflation-protected income.

With both streams at a consistent, inflation-protected $20 million, public markets may begin to price a multiple on those earnings in excess of tangible book.

The storage business

The storage business is quite simple. You set up an account and then can store gold and other precious metals at vaults around the world run by reputable third parties like the Canaidan Mint and Brink’s. Revenue is from storage and also customers buying and selling precious metals. The customer pricing model for both is based on a percentage. It seems unlikely that the total storage business costs would increase in line with increases in precious metals prices, except for insurance which would increase. A breakdown of the actual costs for the trading and storage business is not available.

There has been erosion in this business with total quantities stored declining, offset by precious metals price increases.

Overall storage volumes have been declining and we think some of this is actually intentional.

Read more

Disclosure: We are long. Position weighting LOW, Risk HIGH, but what a story

We have followed POWW for a few years now. They own and operate the eBay of guns, gunbroker.com, and their multi-year Board/management fight officially came to a close at the AGM last week. Boy was it expensive…

We have made recent purchases at ~$1.30s/$1.40s as part of our basket of special situations. You have a high margin, low capital business that trades at a reasonable multiple based on reasonable expectations of new (returning?) management. It appears to have its issues behind it, but uncertainty remains high.

As we noted in May, in the Steve Urvan Coup: To recap, AMMO Inc. acquired gunbroker.com, America’s legal eBay of guns, from creator Steve Urvan during the boom times of COVID for US$240MM in a needlessly complex mix of cash, debt, and equity. AMMO’s core business prior to this was a massive-loss-making ammunition division with a long questionable history. They subsequently announced the sale of the ammunition division (a good outcome) and now just have Gunbroker run by its founder after a long drawn-out coup. See archives for full background.

https://www.canadianvalueinvestors.com/i/164882919/ammo-inc-nasdaqpoww-we-mean-outdoor-holding-company-update-the-steve-urvan-coup

Since our last update, their have now issued clean financials with the sold ammunition division removed as discontinued operations and, separately, resolved former management’s accounting issues, received shareholder approval for the proposed settlement agreement with Steve, and regained Nasdaq compliance - https://outdoorholding.com/news/news-details/2025/Outdoor-Holding-Company-Regains-Full-Compliance-with-Nasdaq-Rule-Following-Successful-Annual-Stockholder-Meeting/default.aspx

Will POWW be a big winner for shareholders? If you are willing to look through the noise, you will see a high margin niche business with the founder of it given the mandate to run it. For everyone else, this has turned into two stories. The first is how stock screens can fail you. The second is how wild Board fights can waste unbelievable amounts of time and money.

Will Steve Urvan right the ship? Let’s find out.

The quiet AGM

The AGM last week had a laundry list of items to approve. The most important was #4 – the warrants. All items were approved.

Chairman and Chief Executive Officer Steve Urvan said, “We are very pleased to regain full compliance with Nasdaq Listing Rule 5620(a). We received a series of deficiency notices starting over 9 months ago, and the board and management team has worked tirelessly to resolve these deficiencies. In the remediation process, we have dramatically improved our internal corporate processes and governance to position the Company for the future. Witha new board of seasoned veterans, we can now focus fully on our mission as a pure-play online marketplace for firearms and outdoor enthusiasts. Our primary mandate will be accelerating growth in our core online business and enhancing long-term stockholder value. I look forward to working with our newly elected board on achieving these goals.”

At the Annual Meeting, the Company’s stockholders approved the following matters, each of which is described in greater detail in the Company’s proxy statement filed with the Securities and Exchange Commission on July 14, 2025:

1. Election of Steve F. Urvan, Christos Tsentas, Wayne Walker, Houman Akhavan, and David Douglas as directors of the Company through the 2026 annual meeting of stockholders.

2. Ratification of Withum Smith & Brown, PC as our independent registered public accounting firm for the fiscal year ending March 31, 2026.

3. Approval of the Outdoor Holding Company 2025 Long-Term Incentive Plan.

4. Approval of the Warrant Share Issuance Proposal.

5. Approval of a Reverse Stock Split of the Common Stock at a ratio in the range of 1-for-5 to 1-for-10, with the exact ratio to be determined at the discretion of the Company’s board within one year of the Annual Meeting.

6. Approval, on an advisory basis, of the compensation of the Company’s named executive officer compensation.

7. Approval, on an advisory basis, of the frequency of future advisory votes on named executive officer compensation in one-year intervals.

The mechanics of the note issue vote is interesting as the size of the settle triggered a Nasdaq rule, specifically:

If the Warrants vest in full and the holder exercises the Warrants to purchase all of the Warrant Shares and Additional Warrant Shares subject to the Warrants (and sells none of its existing holdings), Mr. Urvan would become a beneficial owner of approximately 26.9% of the outstanding shares of Common Stock (immediately after the issuance of such shares and based on the number of shares of Common Stock outstanding as of the Signing Date).

…

As a result, our issuance of Common Stock pursuant to the Additional Warrant, if issued and exercised in full, would cause Mr. Urvan to own 20% or more of our Common Stock and remain our largest stockholder, which may be deemed a “change of control” for purposes of Nasdaq Rule 5635(b).

…

Nasdaq Rule 5635(b) requires stockholder approval prior to an issuance of securities when the issuance or potential issuance will result in a “change of control” of a listed company, which for Nasdaq purposes is generally deemed to occur when, as a result of an issuance, an investor or a group of investors would own, or would have the right to acquire, 20% or more of the outstanding shares of common stock or voting power of a company and such ownership or voting power would be the company’s largest ownership position.

As a result, our issuance of Common Stock pursuant to the Additional Warrant, if issued and exercised in full, would cause Mr. Urvan to own 20% or more of our Common Stock and remain our largest stockholder, which may be deemed a “change of control” for purposes of Nasdaq Rule 5635(b).

We note that there can still be some shenanigans. Technically, based on our interpretation, they could repay the majority of the notes and then still issue the full amount of the warrants, subject to the independent directors voting for this to happen. Questions of independence aside, we view that as unlikely if Steve really does want to hit the reset button as he indicates in his recent shareholder letter (see Appendix).

With respect to Note 2, the Company also has the unilateral option, at any time prior to May 30, 2026, to prepay all, but not less than all, of the then-outstanding principal amount of Note 2 and accrued and unpaid interest thereon in exchange for the issuance the Additional Warrant (the Additional Warrant together with the Warrant, the “Warrants”) to purchase 13,000,000 shares of Common Stock, provided that the Company must first obtain stockholder approval of the issuance of the Additional Warrant and the Additional Warrant Shares pursuant to Nasdaq Listing Rule 5635.

Upon issuance of the Additional Warrant, all remaining obligations under Note 2 would be deemed satisfied with the same force and effect as a prepayment of all principal and accrued and unpaid interest under Note 2. To the DLSC, this unilateral Company right to exchange the Note for the Additional Warrant was a material term in the settlement negotiation; its inclusion significantly reduced the present economic value of Note 2 to the holder at the time of the Settlement Agreement and could, depending on the Company’s share price at the relevant time, extinguish the Company’s obligations under Note 2 for substantially less than the face or present value of Note 2. Any optional prepayment by the Company, whether in cash or by issuance of the Additional Warrant, must be approved by a majority vote of the disinterested and independent members of the Board as then constituted.

The virtual AGM itself was quiet, with only one question. The question:

Richard Leza, inspector of election: Steve, we have received one question from a shareholder. The question is when can we have open quarterly conference calls where we can ask a lot of questions?

Answer – Steve Urvan: We have not at this time made that determination, but we are working toward that. What we want to be is a very open, very transparent company. And we want to have an open dialogue with the Street and with our shareholders. So, we will be heading in that path. I just can't give you a firm date as to when that will begin.

There were no further questions, so we've now concluded the shareholder question-and-answer session. Thank you for attending the Outdoor Holding Company 2025 Annual Meeting of Stockholders

We look forward to the promised increased transparency going forward.

POWW Case study: How screens can fail you

We know that a lot of investors including ourselves use screens to find opportunities. Of course, with some situations the high level snapshot can be very misleading. In the case of POWW, the output you get really has nothing to do with what Outdoor Holding is today, and what it would have been yesterday had the now-sold ammunition division and multi-year insider battle never existed. That said, top line performance for gunbroker.com has been challenged, which can be at least partially be explained by the macro background. We do not doubt that the distractions of the last few years have also had an impact though.

Quick Macro

If you estimated U.S. gun sales based on the level of panic in CNN and Fox News headlines, one could reasonably assume that guns would be flying off the shelves. Interestingly, that is not the case. After a COVID boom, sales are continuing to slide back to pre-pandemic levels. Manufacturers indicate similarly. For example, we show Smith and Wesson sales decline shown below. Gunbroker’s revenue softness is in line with the macro and seems to indicate that they are maintaining market share. https://www.safehome.org/data/firearms-guns-statistics

The RemainCo post-value destruction

We want to pause for a moment and make note of how destructive this multi-year battle has been. If you add up all the legal costs and the actual settlement, the cost exceeds US$100MM, which is remarkable for a company with an enterprise value of less than US$200MM. The ultimate outcome was largely in line with our optimistic expectations (ammo gone, old guard gone), but the cost to get here was not. Thank goodness the loss-making ammunition division was worth something to someone.

There remains significant uncertainty:

Read more

August 28, 2025 (UPDATED: September 27^th for late additions Cybeats and Tribe)

SmallCap Discoveries is holding their investment conference September 29th-30th in Vancouver, Canada. There is a fantastic selection of companies presenting and we have put together a cheatsheet of every company attending for our readers.

We also covered this conference last year, which was held in partnership with Planet MicroCap. See here -

Even if you cannot attend, we think it is a worthwhile list of interesting companies to go through, with several potentially at an inflection point.

The list of companies is great, but it is also a bit long at about 50 in total. How do you get up to speed? To help, we put together the following summaries outlining financial performance and recent developments. It is presented in alphabetical order. We hope you find this helpful!

We also provide paying subscribers a PDF (see end of post).

For conference information see here - https://www.meetmax.com/sched/event_122453/conference_home.html?bank_access=0&event_id=122453

Information about SmallCap Discoveries can be found here -

https://smallcapdiscoveries.com/

Their YouTube channel is also a great source of interviews - https://www.youtube.com/@Smallcapdiscoveries/videos

Disclaimer – This post is longer than usual and so is this disclaimer. The following company summaries are provided with absolutely no claim of accuracy. There might be errors that are numerous, material, and possibly even glaring. The information provided is our notes of our interpretation of publicly available information and should absolutely not be relied upon for any purpose.

The content contained in this blog represents the opinions of contributors. You should assume contributors have positions in the securities discussed, whether long, short, or somewhere in between, and that this creates an obvious conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance whatsoever and are subject to certain risks, uncertain risks, and other factors. Information might also be completely out of date and may or may not be updated. No one guarantees the accuracy of any information provided and none of the information should be construed as investment advice under any circumstance. Frankly, no information here should be used for any purpose except for entertainment (and we hope you enjoy).

Company List

As of August 28th. Subject to change.

Alchemy Nanotechnology (Private)

Aluula Composites Inc. (TSX:AUUA)

Atlas Engineered Products (TSX.V: AEP)

Avante Corp (TSX.V: XX)

BeWhere Holdings (TSX.V: BEW)

Boardwalktech Software (TSX.V: BWLK)

Cannara Biotech Inc. (TSX: LOVE)

Char Technologies (TSX.V: CHAR)

Cheelcare (TSX.V: CHER)

Cleantek Industries (TSX.V: CTEK)

Cybeats Technologies Corp. (CNSX:CYBT)

Decibel Cannabis Company (TSX.V: DB)

DIRTT Environmental Solutions (TSX: DRT)

Eastside Games Group (TSX.V: EAGR)

EnWave Corporation (TSX.V: ENW)

Everyday People Financial (TSX.V: EPF)

Glow Lifetech (CSE: GLOW)

Grey Wolf Animal Health (TSX.V: WOLF)

Hydreight Technologies (TSX.V: NURS)

HyperCharge Networks (CSE: HC)

IC Group Holdings Inc. (private)

Innovotech (TSX.V: IOT)

Itafos (TSX: IFOS)

Kelso Technologies (TSX.V: KLS)

McCoy Global (TSX: MCB)

Nanalysis Scientific Corp (TSX.V: NSCI)

Neupath Health Inc. (TSX.V: NPTH)

Nevis Brands (CSE: NEVI)

NexLiving Communities (TSX.V: NXLV)

NTG Clarity Networks (TSX.V: NTG)

Paragon Advanced Labs (Private)

Progressive Planet Solutions (TSX.V: PLAN)

PUDO Inc (CSE: PDO)

Reklaim (TSX.V: MYID)

Renoworks Software (TSX.V: RW)

Revolve Renewable (TSX.V: REVV)

RIWI Corp. (TSX.V: RIWI)

Rubicon Organics (TSX.V: ROMJ)

Rumbu Holdings (TSX.V: RMB)

Sangoma Technologies (TSX: STC)

Simply Solventless Concentrates (TSX.V: HASH)

Snipp Interactive (TSX.V: SPN)

Telescope Innovations Corp (CNSX: TELI

Thermal Energy (TSX: TMG)

Thinkific (TSX: THNC)

Tribe Property Technologies (CVE:TRBE)

Zedcor (TSX.V: ZDC)

ZTEST Electronics (TSX.V: ZTE)

Aluula Composites Inc. (TSX:AUUA)

Aluula Composites Inc. develops and manufactures advanced soft composite materials engineered for strength, lightness, and recyclability. Its proprietary fabric technologies—such as Aeris™, Gold™, and Durlyte™—are used in high-performance applications across windsports, outdoor gear, aerospace, defense, and industrial markets. The company’s materials are valued for their extreme strength-to-weight ratio, UV resistance, and environmental sustainability, with a focus on replacing conventional laminated fabrics.

It completed a 20-for-1 share consolidation in March and raised approximately $2.5 million through a rights offering. Strategic initiatives included deeper expansion into maritime and defense markets, including supplying material for wind-powered commercial shipping systems. The company also announced board and management changes to support its evolving commercial focus and long-term growth strategy.

Atlas Engineered Products (TSX.V: AEP)

Atlas Engineered Products is a Canadian manufacturer and supplier of engineered wood products and prefabricated structural components, primarily serving the residential, commercial, and agricultural construction sectors. Its offerings include roof and floor trusses, wall panels, and floor systems, along with complementary design and engineering services. Operating through a network of regional facilities, the company focuses on delivering localized solutions while pursuing an acquisition-driven growth strategy to consolidate a fragmented industry. Atlas differentiates itself through its technical capabilities, customization options, and emphasis on operational efficiency.

The Company continues to focus on automation and acquisitions. In 2025, Atlas expanded its footprint through two notable acquisitions that signal a continuation of its consolidation strategy. In June, the company completed the acquisition of Truss-Worthy Construction Systems Inc., a truss manufacturer based in Colborne, Ontario, and in late July, Atlas acquired Penn-Truss MFG Inc., a manufacturer based in Saltcoats, Saskatchewan.

Avante Corp. (TSXV: XX)

Avante Corp. is a Toronto-based provider of integrated security solutions, specializing in premium physical security, remote monitoring, and cybersecurity for high-net-worth individuals, commercial enterprises, and institutional clients. Its business segments include Avante Security, Avante Black, and Avante Verified, each delivering customized services backed by proprietary technologies and high-touch client engagement. The company has historically grown both organically and through targeted acquisitions, with an emphasis on recurring revenue and innovation in AI-driven surveillance.

The company recently launched WALL-E, an AI-powered mobile surveillance unit for use in remote or sensitive locations, as well as the Verified Response Program, targeting school safety markets with a human-in-the-loop AI model.

BeWhere Holdings Inc. (TSXV: BEW)

BeWhere Holdings Inc. is a Canadian Mobile Internet of Things (M-IoT) company that designs and manufactures low-cost, low-power GPS tracking and environmental sensing devices. Its technology enables real-time monitoring of non-powered assets such as trailers, equipment, and tools, serving industries like transportation, construction, logistics, and emergency services. BeWhere offers vertically integrated solutions, including its proprietary hardware, cloud-based dashboards, and mobile applications, with an emphasis on long battery life and cellular or satellite connectivity.

In early 2025, the company acquired a U.S.-based installation and logistics firm for US$600,000—paid in a mix of cash and equity—to expand its footprint and service capacity in the United States. BeWhere continued to build customer traction, highlighted by case studies featuring its BeMini 5G tracker deployed in North American paramedic services and solar-powered BeSol trackers used by California Freight in dairy logistics, which led to a multi-year leasing contract.

Case study here - https://bewhere.com/bewhere-holdings-inc-and-hglobal-transform-emergency-services-with-low-power-5g-asset-tracking/

Boardwalktech Software Corp. (TSXV: BWLK)

Boardwalktech Software Corp. provides digital ledger technology and enterprise software platforms designed to improve data governance, workflow automation, and compliance in large-scale organizations. Its flagship product, Velocity, is focused on End-User Computing (EUC) risk remediation—particularly for clients in highly regulated industries like banking and financial services. The company's patented technology enables structured collaboration and version control of critical business processes, and it generates revenue primarily through SaaS licenses and implementation services.

In June 2025, it renewed a multi-year license agreement with a top-five U.S. bank, showing continued deployment of its Velocity platform and reinforcing the value of its enterprise relationships. The company also launched a new EUC Asset Tracker and entered proof-of-concept phases with a major Mexican bank and an additional U.S. financial institution.

Cannara Biotech Inc. (TSXV: LOVE)

Cannara Biotech Inc. is a vertically integrated cannabis producer headquartered in Quebec, focused on cultivating and processing premium-grade cannabis for the Canadian recreational market. The company operates over 1.6 million square feet of licensed indoor cultivation space across two facilities, offering dried flower, pre-rolls, and oils under brands such as Tribal, Nugz, and Orchid CBD. Cannara emphasizes cost efficiency, quality control, and innovation, positioning itself as a low-cost producer with premium positioning.

In 2025, Cannara has continued to streamline its operations and strengthen its financial position. In August, the company announced the sale of a non-core building under construction, along with adjacent land, for total gross proceeds of $5.5 million.

We covered them here - https://www.canadianvalueinvestors.com/p/the-curious-case-of-canadian-cannabis

CHAR Technologies Ltd. (TSXV:YES)

CHAR Technologies specializes in sustainable energy solutions centered around its proprietary high-temperature pyrolysis (HTP) technology. This innovation converts unmerchantable wood and organic waste into renewable energy streams—namely biocarbon and renewable natural gas (or green hydrogen)—designed to support decarbonization efforts in heavy industries such as steelmaking. The company targets both biocarbon production and RNG generation, leveraging renewable feedstocks and advanced engineering to deliver carbon-neutral alternatives to traditional energy sources.

In 2025, CHAR has been busy. In May, it announced a binding letter of intent and completed a $2 million non‑brokered private placement with BMI Group’s subsidiary, Bioveld Canada Inc., raising funds to advance the Thorold Renewable Energy Facility and granting BMI rights to nominate a board director. Following that, in July, CHAR and BMI formalized agreements for an $8 million project-level equity investment—resulting in joint ownership of the Thorold facility and enabling Phase 1 commercial biocarbon production by Q4 2025.

Cheelcare Inc. (TSXV:CHER)

Cheelcare Inc. develops innovative mobility technologies aimed at enhancing independence and quality of life for individuals with physical disabilities. The company designs and manufactures solutions such as robotic power wheelchairs (e.g., the Curio), power add-ons for manual wheelchairs (e.g., Companion), and orthopedic accessories—all engineered from R&D through to commercial deployment, leveraging expertise in complex rehabilitation mobility technologies.

Cheelcare recently went public on the TSX through business combination agreement with Departure Bay Capital Corp. to complete a qualifying transaction via amalgamation. In July, the company officially closed this qualifying transaction, rebranded from Departure Bay Capital to Cheelcare, completed a share consolidation, raised approximately $3.5 million through a private placement and began trading on the TSX Venture Exchange under the symbol CHER.

No table. Recently public.

Cleantek Industries Inc. (TSXV:CTEK)

Cleantek Industries provides patented clean-technology solutions focused on wastewater treatment and industrial lighting. Its product portfolio includes solutions like HaloSE and EcoSteam that aim to reduce both operational costs and carbon intensity across commercial, industrial, and municipal applications. Headquartered in Calgary, Cleantek emphasizes innovation and sustainable deployment of its lighting and steam technologies.

In 2025, Cleantek has delivered strong revenue growth. Cleantek’s revenue is generated primarily from the rental and service of sustainable lighting solutions, including solar hybrid lighting towers and HALO lighting systems and ZeroE dehydration units. In early May, it secured a new contract for the supply and installation of five Halo SE Crown Mount lighting systems and three stadium light towers, supporting its international market expansion. Their tower lighting systems are bright - https://cleantekinc.com/stadium-lighting/

Cybeats Technologies Corp. (TSX:CYBT)

Cybeats Technologies Corp.

Cybeats is a cybersecurity and software supply‑chain security company that focuses on managing and securing Software Bills of Materials (SBOMs). It provides tools and platforms (e.g. SBOM Studio, SBOM Consumer) enabling organizations to monitor, validate, remediate, and manage vulnerabilities across software supply chains, particularly in hardware, embedded systems, IoT, industrial control, and mission‑critical environments. The company positions itself at the intersection of compliance, DevSecOps, and software risk management.

In January, it secured a multi‑year contract with Rockwell Automation, a major industrial automation company, expanding its footprint into the ICS (Industrial Control Systems) vertical. In July, the company announced a “LIFE” private placement led by Beacon Securities to raise capital for scaling its operations and accelerating adoption of its software supply chain security tools.

Tribe Property Technologies (CVE:TRBE)

Tribe Property Technologies develops technology-enabled solutions for the multi-family residential property sector, integrating software, operations, and services across the lifecycle of a property. Its “Build, Manage, Live” model supports everything from pre and post-construction workflows, property management operations, tenant experience platforms, to service and engagement solutions. The company seeks to digitize and modernize property operations through data, access, and workflow automation.

In May, the company acquired Ace Agencies Ltd., a B.C.-based single‑unit rental property manager. In July, Tribe completed a public unit offering raising ~$5.75MM to fund growth, tech investment, and working capital. In Q2, revenue reached $8.1MM, a 32% increase year-over-year, while adjusted EBITDA losses narrowed.

Decibel Cannabis Company Inc. (TSXV:DB)

Decibel Cannabis is a vertically integrated cannabis company known for its portfolio of premium brands—such as General Admission, Qwest, and VOX—and its vertically integrated operations spanning cultivation, processing, and manufacturing across Canada. The company recently expanded its reach through the acquisition of AgMedica, adding an EU‑GMP‑certified facility and elevating its capacity for global distribution.

In 2025, Decibel has been executing on its revenue growth and expanding overseas. In February, it entered a supply and trademark license agreement to distribute its General Admission dried medical cannabis products overseas.

DIRTT Environmental Solutions Ltd. (TSX:DRT)

DIRTT Environmental Solutions is a Calgary‑based leader in industrialized, technology‑driven interior construction. Its integrated approach combines physical modular components with its proprietary ICE® design‑to‑delivery software, enabling adaptive, efficient, and sustainable solutions for sectors including healthcare, education, commercial, and public spaces.

In 2025, DIRTT has navigated macroeconomic headwinds—particularly rising tariffs—while advancing its strategic transformation. Despite trade challenges, DIRTT’s 12‑month forward pipeline surpassed US$300 million, its strongest in over two years, and new products like its one‑hour fire‑rated wall opened access to sectors such as healthcare and hospitality.

East Side Games Group Inc. (TSX:EAGR)

East Side Games Group is a Vancouver-based free‑to‑play mobile game publisher and developer, known for creating both original and licensed IP games. The company operates through its in‑house studios and its GameKit™ platform, and monetizes via in‑game purchases and advertising.

In 2025, the launch of RuPaul’s Drag Race Match Queen quickly became the company’s top‑grossing Match‑3 title, and it continued its momentum with a global launch planned for Squishmallows Match in Q3. The company has maintained a clean balance sheet with zero debt while continuing to repurchase shares.

EnWave Corporation (TSXV:ENW)

EnWave Corporation develops and licenses its proprietary Radiant Energy Vacuum (“REV™”) dehydration technology, which enables rapid, low-heat drying of a wide range of food, pharmaceutical, and agricultural products. Their scalable systems support both large- and small-scale commercial deployment, offering clients efficiency gains, lower operating costs, and nutrient retention benefits through vacuum-microwave dehydration and associated royalty streams.

In August 2025, the company closed a non‑brokered LIFE private placement to fund the construction of two new REV™ systems to accelerate machine delivery and meet rising demand.

Everyday People Financial Corp. (TSXV:EPF)

Everyday People Financial operates as a capital-light, technology-driven financial services firm focused on revenue cycle management (RCM) and innovative borrower programs. Through acquisitions and organic growth, it consolidates small RCM service providers and offers fee-based lending solutions, aiming to deliver recurring revenue streams with lower capital intensity.

In 2025, growth has been driven by RCM gains (including the acquisition of Commercial Collection Services Limited) and in its Borrowed Down Payment Program. In July, the company also completed the sale of its legacy home inventory, enabling retirement of USD 3 million in debt and finalizing its pivot to a pure fee-for-service model.

Glow Lifetech Corp. (CNSX:GLOW)

Glow Lifetech produces and distributes high-margin plant-based wellness products, including its proprietary MOD™ and .decimal™ cannabis oil lines. The company emphasizes rapid product innovation, distribution scale, and branding to capture market momentum in Ontario’s regulated cannabis sector.

In 2025, it has expanded its retail distribution to more than 1,000 Ontario stores—a ~45% increase—and secured the #2 oil brand ranking in the province for its MOD™ line. The firm also commissioned a new automated bottling line to support scaling and launched a CBG-based product in Ontario.

Grey Wolf Animal Health Corp. (TSXV:WOLF)

Grey Wolf Animal Health is a Canadian veterinary health company focused on the development, acquisition, and commercialization of animal health products and services. It offers a broad portfolio that includes pharmaceuticals, nutraceuticals, and medical devices, serving both companion and production animal markets. The company distributes its products through veterinary clinics, hospitals, and retailers, and also provides support services such as pet telehealth and mobile veterinary care.

In 2025, Grey Wolf delivered strong growth across its business, with first-quarter revenue rising 31% year-over-year, supported by both organic expansion and stronger uptake of its core veterinary offerings. It continues to build its presence across Canada, focusing on under-served segments such as rural veterinary services. Grey Wolf has also been gradually scaling its mobile care and retail partnerships.

Hydreight Technologies Inc. (TSXV:NURS)

Hydreight Technologies is a U.S.-focused, digital health and wellness company offering a telemedicine-enabled platform that connects healthcare professionals with patients for services such as IV therapy, medical aesthetics, and wellness treatments. The platform integrates mobile clinical service delivery with back-end infrastructure, including medical oversight, insurance, and digital recordkeeping, effectively turning practitioners into mobile clinics under a compliant framework.

The Company reported a 34% year-over-year increase in first-quarter revenue and achieved positive net income and adjusted EBITDA for the period. The company launched its new VSDHOne platform, a white-label direct-to-consumer solution for the mobile health market in all U.S. states. In August, Hydreight announced a $10 million convertible debenture raise to support its product development and platform scaling initiatives.

Hypercharge Networks Corp. (TSXV:HC)

Hypercharge Networks is a Canadian EV infrastructure company providing end-to-end charging solutions including hardware, network software, installation, and maintenance. The company targets commercial, multi-unit residential, and public spaces, offering flexible deployment options through either direct sales or recurring revenue models such as charging-as-a-service.

In 2025, Hypercharge has experienced substantial growth and has deployed over 5,900 charging ports. Major project wins included a rollout of 500 chargers at a large mixed-use development in Vancouver and a multi-year agreement to install 444 chargers across residential properties in Western Canada. The company also launched its next-generation Level 2 charger, the Hypercharge Halo™, aimed at further penetrating the multi-family and commercial segments.

Innovotech Inc. (TSXV:IOT)

Innovotech Inc. specializes in contract research services focused on antimicrobial effectiveness and microbial interactions with biosurfaces. Its offerings include validating products for antimicrobial claims—frequently supporting FDA 510(k) submissions—as well as producing MBEC Assay® kits and pursuing commercialization of its InnovoSIL™ antimicrobial silver technology through subsidiary operations such as Innovotech Labs and Keystone Labs.

In 2025, Innovotech posted record first-quarter revenue of approximately CAD 1.16 million, driven by increased contract research activity, particularly through its Innovotech Labs subsidiary and contributions from Keystone Labs following its late-2024 acquisition.

Itafos Inc. (TSXV:IFOS)

Itafos Inc. is a phosphate and specialty fertilizer producer operating assets such as the Conda phosphate operations and the now-divested Araxá mine. The company focuses on phosphorus products—including MAP and SSP—geared toward agricultural and industrial markets, leveraging its processing infrastructure and global distribution capabilities.

In 2025, the Company has advanced the infrastructure build-out of our Husky 1 / North Dry Ridge (“H1/NDR”) mines in Idaho with first ore shipments to the Conda plant scheduled for later this year and announced a magnesium-reduction project at Conda to maintain production capacity. In Q2, Itafos added to its U.S. shareholder presence by adding a OTCQX listing.

Kelso Technologies Inc. (TSX:KLS)

Kelso Technologies designs proprietary components for the safe transport of hazardous materials by rail, including specialized tank car valves and related systems. It serves niche industrial markets, working under tight regulatory frameworks while focusing on product innovation and reliability.

In 2025, Kelso achieved its first profitable quarter since early 2020 supported by a 19% year-over-year increase in revenue and improved gross margins. The company is positioning itself for modest sales growth in 2025 (0–5%) while exercising strict cost discipline in anticipation of an upturn in tank car demand in 2026–2027. It also pursued AAR approval for its new Bottom Outlet Valve and Angle Valve products, established a new credit line for liquidity, and realigned its board.

McCoy Global Inc. (TSX:MCB)

McCoy Global supplies advanced tools and digital technologies—including its smartProduct portfolio and smarTR™ system—for the oil and gas sector, enabling automation, safety improvements, and wellbore integrity enhancements across land and offshore operations.

In 2025, McCoy has reported robust growth. Q2 revenue rose 21% year-over-year to approximately USD 24.1 million, with smartProduct offerings accounting for 58% of total sales.

Nanalysis Scientific Corp. (TSXV:NSCI)

Nanalysis Scientific develops and manufactures portable nuclear magnetic resonance (NMR) spectrometers and imaging (MRI) systems for industrial, academic, and research applications. The Company also has a significant role in airport operations in Canada as the contractor providing maintenance services for security screening and imaging equipment at all 89 designated Canadian airports. Their benchtop NMR units—such as the NMReady‑60™—stand out for delivering compact, high-resolution functionality without cryogens, enabling use across sectors like pharmaceuticals, food science, mining, and forensics. The company also operates global sales and service infrastructure, offering both instruments and maintenance support to markets worldwide.

In 2025, Nanalysis achieved operational momentum and began showing tangible profitability progress. In the first quarter, the company delivered positive adjusted EBITDA and operating cash flow of CAD 2.7 million, marking a significant EBITDA turnaround. Additionally, they launched their next-generation 60 MHz benchtop NMR platform and advanced automation tools targeted at pharmaceutical and chemical markets.

NeuPath Health Inc. (TSXV:NPTH)

NeuPath Health is a vertically integrated healthcare services provider operating a network of clinics specializing in chronic pain, spinal injuries, concussion, and sports medicine treatment. They offer services to both patients and institutional clients—such as employers and insurers—and increasingly engage in contract research offerings. Their model emphasizes interdisciplinary, data-driven care and expanding access across Ontario and Alberta.

In 2025, NeuPath made a management change adding a new President role to accelerate inorganic and organic growth and optimize margins. They also secured a new credit facility providing additional flexibility. In the first quarter, revenue climbed approximately 11% year-over-year, and adjusted EBITDA rose nearly 50%. the Q2 results—setting a clear path toward growth and operational scaling.

Nevis Brands Inc. (OTCQB:NEVI.F)

Nevis Brands is a beverage-centric cannabis company that licenses and markets well-known branded products, such as Major™ and Happy Apple™ hemp-derived THC drinks. Rather than owning production facilities, the company employs an asset-light model—licensing manufacturing and distribution—providing agility, strong margins, and reduced capital commitments.

In 2025, Nevis delivered steady top-line growth while continuing to scale its beverage offering. In Q2, quarterly revenue edged up slightly from Q1, supported by stability in legacy core markets and growing traction in new territories like New Jersey and Missouri. Notably, the company recorded its first revenue from the Happy Apple™ hemp-derived THC beverage, marking expansion into new consumption formats.

NexLiving Communities Inc. (TSXV:NXLV)

NexLiving Communities is a Canadian multi-residential real estate company that acquires, owns, and manages recently built or refurbished rental properties in secondary and tertiary markets. Focused on delivering quality, modern living solutions at accessible price points, the company couples high occupancy strategies with dividend distribution to enhance investor returns.

In 2025, NexLiving operations have performed with occupancy rates exceeding 97%. The company also expanded its portfolio with a strategic investment in a 169‑unit property, while at the same time paying a dividend and renewal of its share buyback program.

NTG Clarity Networks Inc. (TSXV:NCI)

NTG Clarity Networks is a digital transformation services provider delivering software development, IT infrastructure, and network engineering solutions to enterprise and public-sector clients. Leveraging both onsite and offshore delivery models, the company supports clients across financial services, telecommunications, and other industries with their proprietary NTGapps platform and customized software solutions.

In 2025, NTG Clarity has seen considerable momentum, beginning with a strong Q1 where revenue surged 68% year-over-year to approximately CAD 19.7 million, boosting gross profit by 51%. In March, NTG raised its full-year guidance, citing a backlog exceeding CAD 105 million, of which around CAD 80 million is from multi-year agreements. The company also launched a brokered LIFE private placement in July, raising $9 million to fund expansion and working capital.

Progressive Planet Solutions Inc. (TSXV:PLAN)

Progressive Planet Solutions manufactures and markets mineral-based products derived from diatomaceous earth, zeolite, and bentonite, with applications spanning environmental remediation, agriculture, and construction. The company owns or operates key mineral assets and is innovating in low-carbon and sustainability-enhanced product lines, including its PozGlass™ offering for cement and sorbent markets.

In 2025, the company made strategic strides on both innovation and financial fronts. In March, it secured up to CAD 4.64 million in non-dilutive funding from Sustainable Development Technology Canada (SDTC) to build a pilot plant for its PozGlass™ technology. It has acquired mineral rights for their Ferguson Creek Pozzolan property in BC, and announced in July it was entering the lightweight litter market.

PUDO Inc. (OTCQB:PDPT.F)

PUDO Inc. operates a North American e‑commerce pickup/drop‑off network by establishing “PUDOpoint” counters in retail, logistics, and courier locations. The company licenses its software and manages network logistics to enable seamless parcel delivery and return experiences for retailers and consumers across Canada and the U.S.

In 2025, revenue growth has continued. In August, PUDO struck a partnership with Annex Brands, significantly expanding its U.S. footprint by adding PUDOpoint counters at more than 570 new retail locations, doubling its total U.S. coverage from around 800 to roughly 1,370.

Reklaim Ltd. (TSXV:MYID)

Reklaim operates a privacy-forward platform that empowers consumers to reclaim, manage, and monetize their personal data in compliance with growing privacy regulations. The company collaborates with brands and platforms to offer users transparency and control over data usage and introduces privacy-aligned monetization options.

In 2025, growth has continued. In Q1 it achieved a 73% increase in revenue compared to the prior year driven by platform data sales. It recently launched Reklaim Protect, a subscription-based privacy service enabling users to remove personal data from brokers, monitor dark-web exposure, and access an AI-powered privacy assistant. In June, it introduced a “Consumer Ownership Program” allowing Canadian users to redeem loyalty points for shares.

RenoWorks Software Inc. (TSXV:RW)

RenoWorks Software Inc. specializes in digital visualization and lead-generation technology tailored to the home renovation and new construction industry. Its product suite includes interactive home visualizers, product configurators, digital libraries, analytics tools, and design services used by contractors, manufacturers, distributors, and homeowners. The company provides immersive browsing experiences that enhance sales and marketing workflows by helping clients visualize products in real-time.

In 2025, RenoWorks reported its fifth consecutive profitable quarter in Q2, with continued revenue growth and strong gross margins. It also expanded its product offerings, launching new enterprise visualizers to support sales teams and improve lead conversion.

ReVolve Renewable Power Corp. (TSXV:REVV)

ReVolve Renewable Power Corp. is a developer, owner, and operator of renewable energy projects including run-of-river hydro, wind, solar, and hybrid systems focused on delivering both long-term operating assets and development-stage opportunities across North America. The company operates an “own & operate” portfolio while monetizing higher-capacity utility-scale assets through its “develop and sell” model.

In 2025, recurring revenue from operating assets has continued to increase with new operating projects coming on line. They completed a fully subscribed non-brokered $1.2MM LIFE equity offering in June to fund further growth.

RIWI Corp. (TSXV:RIWI)

RIWI Corp. is a global technology company that delivers real-time predictive insights through anonymized, opt-in survey data, using its proprietary Random Domain Intercept Technology (RDIT™). It serves clients across sectors needing sentiment tracking, trend analysis, and behavioral research at scale, offering timely data for market intelligence, risk, and decision-making.

In 2025, RIWI completed the integration of its TheoremReach acquisition delivering stated cost synergies via consolidated staffing and systems. It has launched new offerings like a premium packaging solution and high-efficiency sample management tools.

Rubicon Organics Inc. (TSXV:ROMJ)

Rubicon Organics Inc. is a licensed producer specializing in organic-certified and premium cannabis products, including dried flower, pre-rolls, and oils. The company emphasizes vertically integrated operations and brand positioning in the wellness segment of the Canadian cannabis market.

In 2025, Rubicon has delivered meaningful progress. Q2 revenue climbed 24% year-over-year and recently acquired a 47,500 sq. ft. facility in Hope, British Columbia, to scale premium production capacity. The company closed a CA$4.5 million non-brokered private placement to support its growth capex and new facility.

Rumbu Holdings Ltd. (TSXV:RMB)

Rumbu Holdings Ltd. is a Canadian consolidator of funeral homes, crematoriums, and aquamation services across Western Canada. Operating an asset-light, community-focused acquisition model, it transitions legacy operators into modern service delivery while partnering with local funeral professionals for continuity.

In 2025, Rumbu has continued it ongoing acquisition activity of additional funeral home locations.

Sangoma Technologies Corporation (TSX:STC)

Sangoma Technologies delivers unified communications solutions for businesses, offering both on‑premises and cloud‑based products such as PBX systems, VoIP gateways, and contact center platforms. A longstanding player in open‑source communications, its portfolio spans the Asterisk and FreePBX ecosystems, and its revenue model combines licensing, hardware, and subscription services aimed at small to mid‑sized enterprises globally.

In 2025, Sangoma continued to grow cash flow and reduce debt. It has initiated a shift away from lower‑margin third‑party hardware resales in favor of strengthening its higher‑value offerings.

Simply Solventless Concentrates Ltd. (TSXV:HASH)

Simply Solventless Concentrates operates as a producer and distributor of terpene-rich, solventless cannabis concentrates. With vertically integrated cultivation, extraction, and branded product lines, the company serves both retail and wholesale channels—targeting discerning consumers seeking premium, craft-oriented cannabis solutions.

Snipp Interactive Inc. (TSXV:SPN)

Snipp Interactive offers digital marketing, promotions, and loyalty software as a service. Its modular platform enables brands to run personalized sweepstakes, rebates, and loyalty programs with AI-powered engagement and fraud protection, serving clients across industries ranging from retail to telecommunications.

In June, Snipp secured a new contract with a leading North American satellite TV provider to manage their loyalty engagement campaigns.

Telescope Innovations Corp (CNSX:TELI)

Telescope Innovations develops AI‑driven automation tools—especially its Self‑Driving Lab (SDL) platform for accelerating chemical and pharmaceutical research. Its DirectInject‑LC™ system and robotics‑powered SDLs aim to transform R&D through high‑throughput experimentation, automation, and digital analysis.

The company is advancing its automation platform and continues pursuing partnerships with industry leaders, positioning itself to drive efficiency in scientific discovery.

Thermal Energy International Inc. (TSXV:TMG)

Thermal Energy International provides engineering-based energy-efficiency and emission-reduction solutions like heat recovery, steam traps, and boiler optimization to industrial clients across sectors including manufacturing, food & beverage, and pharmaceuticals. The company operates globally, offering turnkey systems that deliver cost savings and decarbonization benefits by recovering waste fuel and thermal energy from steam systems.

In 2025, Thermal Energy secured several new contracts including a heat-recovery expansion project with a major food and beverage client in the U.S., and a European malted barley producer. The company also announced a Normal Course Issuer Bid to repurchase shares and participated in the 2025 Canadian Climate Investor Conference.

Thinkific Labs Inc. (TSX:THNC)

Thinkific Labs is a leading "learning commerce" platform that enables creators, educators, and businesses to build, market, and sell online learning and membership experiences. Its tools integrate course creation, community building, and commerce workflows into a unified, scalable SaaS platform—serving markets in both Canada and globally.

In 2025, Thinkific has focused on improving its product and cost control. The company also announced a strategic rebrand centered on AI-powered "learning commerce" capabilities, launched new platform features, and converted all multiple-voting shares into single common shares to streamline its capital structure.

Zedcor Inc. (TSXV:ZDC)

Zedcor Inc. operates a fleet of AI-enabled mobile surveillance solutions—including security towers—under its MobileyeZ™ brand. It provides physical security and remote monitoring services to clients across North America, offering both hardware and monitoring services in high-performance, scalable deployment formats.

In 2025, Zedcor’s growth has continued with high fleet utilization. The company scaled production to 25 towers per week early in the year and further increased capacity to 30–35 per week to meet demand, targeting a total deployment of 1,200–1,400 towers for the year.

ZTEST Electronics Inc. (OTCPK:ZTST.F)

ZTEST Electronics Inc. is a technology company focused on testing, diagnostics, and quality assurance technologies—commonly serving the electronics, energy, and manufacturing sectors. The company enables its clients to streamline complex testing workflows through both hardware and software-enabled diagnostic solutions.

SmallCap Discoveries Conference 2025 Cheatsheet PDF

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Disclosure: We remain long.

We have been writing about the Velan Inc. saga since March, most recently in “All polished up and ready for sale part 2: The RemainCo Statement”. https://www.canadianvalueinvestors.com/p/velan-inc-tsxvln-all-polished-up

To summarize our thesis, they are our favourite valve company making valves since 1950. They are performing well, have a spotless balance sheet, and they no longer want to be a public company. Their business is an investment banker’s dream pitch deck; niche products being used for 90% of the refineries in North America, in Canadian and American nuclear reactors, LNG terminals, and even the U.S. navy among other customers. They are sitting on net cash after offloading their troublesome asbestos liability as well as selling their French division to a French-approved bidder (who blocked the acquisition of Velan by Flowserve last time).

How could you not make an offer? Well now Flowserve, the most likely buyer, received a small windfall of cash after their own failed merger, roughly equalling the EV of Velan. We hope they do not miss out on Velan while they “take a moment to breathe”.

• Flowserve’s failed 2023 bid

• Chart Industries: Flowserve left at the altar

• Flowserve’s post-deal feelings

• Meanwhile at Velan Inc.

Full archive - https://www.canadianvalueinvestors.com/t/vln

Disclaimer - The content contained in this blog represents the opinions of contributors. You should assume contributors have positions in the securities discussed, whether long, short, or somewhere in between, and that this creates an obvious bias and conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance whatsoever and are subject to certain risks, uncertain risks, and other factors. Information might also be completely out of date and may or may not be updated. In addition, no one guarantees the accuracy of any information provided and none of the information should be construed as investment advice or any other kind of advice under any circumstance, and the blog is a blog and not a registered investment advisor or broker in any jurisdiction. Frankly, no information here should be used for any purpose, except for entertainment (and we hope you enjoy).

Flowserve’s failed 2023 bid

With Velan Inc. all cleaned up and free of France we had hoped that Flowserve would come back and make another bid after their last one was blocked by the French government. Back in 2023:

Flowserve intends to [Editor: and subsequently did] terminate the Arrangement Agreement as Regulatory Approval from France will not be obtained

MONTREAL, Oct. 05, 2023 (GLOBE NEWSWIRE) -- Velan Inc. (“Velan”) (TSX: VLN) today announces, in connection with the arrangement agreement made as of February 9, 2023, among Velan, 14714750 Canada Inc. (“Purchaser”) and Flowserve US Inc. (“Parent” and, together with Purchaser, “Flowserve”), as amended by the first amendment to the arrangement agreement dated March 27, 2023 (the “Arrangement Agreement”), that it has been informed by Flowserve of its intent to, following the occurrence of the Outside Date on October 7, 2023, and in accordance with the terms of the Arrangement Agreement, send a notice to Velan to terminate the Arrangement Agreement, considering that the Regulatory Approval (as such term is defined in the Arrangement Agreement) from France has not and will not be obtained.
As previously disclosed, the conclusion of the transactions set out in the Arrangement Agreement was conditional on the Regulatory Approvals, including one from France. In order to meet that key condition, Flowserve offered a package of remedies and undertakings to the French Authorities. The French Authorities have now informed the parties that they will not provide the requisite Regulatory Approval for the sale to Flowserve regardless of such remedies or otherwise. Flowserve has consequently informed Velan of its intention to terminate the Arrangement Agreement following the Outside Date. According to the terms of the Arrangement Agreement, no termination fee will be payable by either party.

Velan will resume operations as an independent business, free of the covenants and other restrictions of the Arrangement Agreement.

Note: For further background around the strategic rational for Flowserve see here - https://www.canadianvalueinvestors.com/i/159434824/appendix-why-flowserve-tried-to-buy-flowserve-comments-on-velan

Chart Industries: Flowserve left at the altar

Instead of another Velan bid, this June Flowserve entered into a definitive all‑stock “merger of equals” agreement with Chart Industries to “bring together Chart’s leading expertise in process technologies across compression, thermal, cryogenic and specialty solutions and Flowserve’s leading capabilities in flow management.” The proposed combined enterprise value was about US$19 billion.

https://ir.flowserve.com/news-events/news-details/2025/Chart-Industries-and-Flowserve-Corporation-to-Combine-in-All-Stock-Merger-of-Equals-Creating-a-Differentiated-Leader-in-Industrial-Process-Technologies/default.aspx

However, in late July 2025 Baker Hughes made an offer for Chart, a $13.6 billion all‑cash bid. Chart’s board deemed it a “superior proposal”, triggering termination of its merger agreement with Flowserve.

Per the merger agreement, Flowserve received a $266 million break-up fee. Flowserve’s board decided not to submit a revised offer, citing confidence in its standalone strategy. The Baker Hughes deal aims to close mid-2026. We do not think Flowserve would wait to see if it runs into regulatory trouble, sour grapes and all.

https://ir.flowserve.com/news-events/news-details/2025/Flowserve-Corporation-Terminates-Merger-with-Chart-Industries/default.aspx

“The termination follows the Flowserve Board of Directors’ decision not to submit a revised offer to merge with Chart, after being notified that Chart’s Board of Directors had determined that a recent unsolicited acquisition proposal from Baker Hughes (NASDAQ: BKR) constituted a “superior proposal” under the terms of the merger agreement. In accordance with the terms of the merger agreement, Flowserve will receive a $266 million termination payment.”

Flowserve’s post-deal feelings

How they talked about it in their conference call:

Great. Thank you, Brian. Good morning, everyone. Before we talk about our outstanding second quarter results, I want to provide an update on the Chart merger. As we announced yesterday, we reached an agreement to terminate the proposed merger with Chart Industries. When we were first approached by Chart about the potential merger, we took a very disciplined approach to the discussion with a focus on ensuring the strong value creation opportunities offered by Flowserve would continue in the merger. This disciplined approach guided us through our decision-making process following the subsequent all-cash offer for Chart from Baker Hughes.

Based on our assessment, further pursuing the merger would have been value diminishing to Flowserve shareholders, given the additional cash, leverage and diluted ownership required to continue the process. While we are disappointed in this outcome, we are confident that this decision was in the best interest of our shareholders and our company.

As a result, Flowserve received a $266 million termination payment in accordance with our signed agreement. Near term, we'll evaluate opportunities to deploy this capital to create value for our shareholders, including through share repurchases. Over time, we remain committed to a disciplined approach to capital allocation, including M&A.

While the outcome wasn't what we wanted, we have no regrets in our decision to pursue this opportunity or move with our decision to terminate the agreement. The Flowserve team and our board of directors were thoughtful, disciplined and focused on our stakeholders throughout this engagement, and I believe we're in a better place today than ever before to capitalize on the opportunities in front of us.

…
Question – Deane Dray: Hey, I want to go through kind of the implications of this whole Chart experience, if I can call it that. So, look, in our view, the deal made sense when it was announced. The deal termination also makes complete sense. So that chapter gets closed. But now we do know more about Flowserve's growth ambitions. So does that growth ambition get put the genie back in the bottle or are you in the hunt for another deal? I love hearing that you can focus now 100% back on the business. And you're going to spend time at FCD. That makes sense. But what about this growth ambition and how does that play out? And how can – what can you say about it today?

Answer – Robert Scott Rowe: Sure. Deane, let me just start with a couple of comments that you said at the beginning, because I do think they're important. And I put this in the prepared remarks. And while we are disappointed in the outcome, we believe this business is in a really good place. We were always bought into the strategic logic and the combination, right, the flow and the thermal management. And there was something there that we thought we could do that was truly transformational in the space.

I am proud of our team and our board to remain disciplined in the early negotiations and getting to a deal, but also in our ability to exit and terminate the deal in a successful way. And obviously that results in a $266 million breakup fee that enhances our balance sheet. And we've received that money to-date. And so that's in our bank account. And we are looking to how to deploy that properly. Additionally, we were able to secure a supply agreement with Chart that really was kind of on the back of some of the revenue synergies that we were talking about with the combination. We wanted to make sure the Flowserve product got pulled through. And so we've got a multi-year supply agreement to progress that forward.

And so as we think forward, right, we're not going to shy away from M&A. And I'm going to let Amy talk about kind of how we think about that and what it looks like. But what I'd say is the other thing that we demonstrated here is that we can make progress while the corporate team looks at mergers and acquisitions. And we delivered an incredibly strong quarter despite the fact that we were in – a small group of our corporate team was involved in pulling off a transaction and starting to build a very robust integration plan. And so that gives me confidence that we can do things a little bit differently here, that we can lean in. But I'd also say we're going to do that incredibly thoughtfully, and we're going to be incredibly disciplined.

But Amy, you want to pick up on that?

Answer – Amy B. Schwetz: Yeah, so I would say, Deane, the filter which we are going to use M&A to really drive shareholder value is unchanged from before the time that we announced the acquisition. So we look for transactions that fit our strategy around diversification, decarbonization and digitization. And ideally, that comes with an attractive aftermarket component or opportunity for us to build on. We want to see attractive financials that drive accretion at both the margin and the cash flow level. And we want to maintain our healthy balance sheet and investment grade rating. And so we've proven to be pretty disciplined in this approach. And you can certainly expect that as we go forward. And I think that the – it's important – we're going to take a moment to breathe...

Answer – Robert Scott Rowe: Absolutely.

Answer – Amy B. Schwetz: ...after this, but I think that the Chart transaction demonstrates three elements of our process, and that although the majority of our opportunities going forward are going to be bolt-ons, we will look at larger transactions if the value creation is compelling. And I think that that is sort of a risk-reward proposition that we look to fully understand. We're going to be disciplined in our approach as evidenced by our desire to pursue – to not pursue this deal at any cost. And finally, I just want to point out that we were able to progress the deal announce and begin integration planning while delivering what was really an outstanding quarter in Q2.

And I think that's evidence the Flowserve Business System is mature enough to allow parts of the organization to spend time on strategic opportunities while not impeding the progress of our organic business. And so it's one of the reasons why we feel confident in M&A being part of our strategy going forward.

Meanwhile at Velan Inc.

We were relatively pleased with Q1 (ending May 31^st). Sales up 18%, gross profit up a bit, decent sales bookings and backlog (up 4% QoQ), and a dividend increase.

On July 10, 2025, the Board of Directors of Velan modified the Company’s dividend policy by approving a significant increase in the Company’s recurring quarterly dividend payment from CA$0.03 to CA$0.10 per common share. This increase reflects Velan’s growing backlog and the Board’s confidence in the Company’s future financial performance, including generating strong cash flow.

So, here Velan sits with a single digit EV/EBITDA multiple, the best operational performance in years, and a clean balance sheet all polished up ready for sale, while Flowserve itself has the best balance sheet it has had in years, further helped by the windfall from the Chart deal that is larger than Velan’s EV (~US$188MM). Maybe Flowserve should not sit too long taking “a moment to breathe”. It would be a shame if… someone else came along and swept away yet another great-strategic-fit deal from Flowserve.

We remain long and will collect our dividend in the meantime.

Full archive - https://www.canadianvalueinvestors.com/t/vln

Disclaimer: We own this one.

D-Box, Inc. (TSX:DBO) has been working on haptic feedback technology for over twenty years. The company’s stock languished for the past decade and operational troubles were exacerbated by COVID-times given widespread movie theatre closures. However, since then, revenue and cash flow have started to turn and are at the highest levels in its history driven by their key product, D-Box seats. They are now installed in over 1,000 theatres worldwide. The company has refocused under new leadership and is scaling a royalty-driven model.

D-Box piqued our interest last fall. However, we did not purchase at that time as we were a bit perplexed with what to think about the simulation-side and, frankly, we were busy with other ideas. However, we are now an owner. For full disclosure, we made our initial purchases averaging around $0.30 and made subsequent purchases after their Q1 2026 results (off-cycle) this past week. A bit late to the party, but we still think it is trading at a reasonable valuation given the changes happening in the business.

How do you get your head around a product like this? You look at the real buyers – the actual movie theatres - and use it yourself. Today, in addition to typical financial analysis, we look at how Cineplex and other theatres think about D-Box and provide our first ever movie review of the American mystery horror movie Weapons, a movie offered and seen by us in D-Box seats. Was it good? Will it get 5/5 on our new proprietary Beavertail Scale (trademark pending)? Read on.

Table of Contents:

• The Cineplex case study

  • Cineplex disclosures: The way Cineplex talks about it in their reporting

  • How they pitch it to you

  • Our movie night: CVI’s first movie review – Weapons

  • The chair experience

• Other theatres

• Financials – the long road

• Our key takeaways

And the beat goes on (better believe it)

Still moving strong, on and on

Don't stop for nobody

This time, I'll keep my feet on solid ground

-The Whispers - And the Beat Goes On

Disclaimer - The content contained in this blog represents the opinions of contributors. You should assume contributors have positions in the securities discussed, whether long, short, or somewhere in between, and that this creates an obvious bias and conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance whatsoever and are subject to certain risks, uncertain risks, and other factors. Information might also be completely out of date and may or may not be updated. In addition, no one guarantees the accuracy of any information provided and none of the information should be construed as investment advice or any other kind of advice under any circumstance, and the blog is a blog and not a registered investment advisor or broker in any jurisdiction. Frankly, no information here should be used for any purpose, except for entertainment (and we hope you enjoy).

The Cineplex case study

Cineplex disclosures: The way Cineplex talks in their reporting

Our case study focuses on Cineplex (TSX: CGX, no position), which runs ~160 theatres in Canada including the theatre we went to. D-Box is part of what they call their premium and enhanced guest theatre services and premium is very important, accounting for an outsized amount of revenue vs overall seats.

Providing a variety of premium and enhanced guest theatre experiences. Premium priced theatre offerings include 3D, 4DX, UltraAVX, VIP, IMAX, D-BOX, ScreenX and Cineplex Clubhouse. BPP for premium priced product was $17.36 in 2024, and accounted for 41.6% of total box office revenues in 2024. Recent enhancements to, and offerings at, the current circuit include the addition of five all-recliner seating auditoriums, including one auditorium with D-BOX seating at the new theatre Cinéma Cineplex Royalmount, which opened on November 25, 2024.

They provide a breakdown of their screens by year. We note that when they say a screen is a “D-Box” screen, it does not mean every seat is D-Box. They have a strategy for how to position them as we get into later.

The way they talk about the benefit.

Technology Risk

Technological advances have made it easier to create, transmit and electronically share unauthorized high-quality copies of films during theatrical release. Some consumers may choose to obtain unauthorized copies of films rather than attending the theatre which may have an adverse effect on Cineplex’s business. In addition, as home entertainment technology becomes more sophisticated and additional technologies become available such as virtual and augmented reality, consumers may choose alternative technology options to consume content rather than attending a theatre.

To mitigate these risks, Cineplex continues to enhance the out of home experience through the addition of new technologies and experiences including 3D, VIP, UltraAVX, D-BOX, 4DX, ScreenX and laser projection in order to further differentiate the theatrical product from the home product.

BPP excluding premium priced product: Calculated as total box office revenues for the period, less box office revenues from 3D, 4DX, UltraAVX, VIP, ScreenX and IMAX product; divided by total paid theatre attendance for the period, less paid theatre attendance for 3D, 4DX, UltraAVX, VIP, ScreenX and IMAX product.

Premium priced product: Defined as 3D, 4DX, UltraAVX, IMAX, ScreenX and VIP film product.

How they pitch it to you in the theatre

The thing about D-Box is that it is not for every movie or everyone. It improves the experience of certain movies, primarily being action movies like the latest F1 with Brad Pitt (5/5 on the Beavertail Scale) and maybe improve movies like the new horror film Weapons (Did it? See review below). Romantic comedies are obviously not the target market.

D-BOX technology offers motion-enabled seating that synchronizes with the action on-screen, allowing you to feel every vibration, sway, and movement in real-time. Reserved D-BOX seating ensures the best views and an amplified sense of adventure, turning ordinary screenings into memorable experiences.

The alternative premium offerings include recliners, but we view those as a different type of experience (think dinner-at-a-big-movie screen with in-chair service). The real comparable for this type of experience is 4DX, developed and manufactured by CJ 4DPlex, a subsidiary of the South Korean conglomerate CJ CGV.

4DX brings movies to life with a multisensory experience. It combines motion seats with environmental effects like wind, rain, snow, scents, fog, and even lightning. Imagine your chair tilting and swaying during a car chase, feeling a breeze during an outdoor scene, or light sprays of water during a storm. It’s like stepping right into the movie, making every moment feel real and unforgettable!

We note that 4DX is even less applicable to movies and is significantly more complex and expensive to execute than D-Box, while D-Box does not replace recliner seating with table service.

The key is that theatres are using a mix of all of these at the same time to win different types of customers and different types of movies.

https://www.cineplex.com/news/What-is-AVX-4DX-Dbox-and-more-what-you-need-to-know-about-movie-viewing-options

The seats

The seats are 1) premium experience and 2) premium location. They typically are a small percentage of overall seating. It enables the theatre to charge a bit more for the experience. As shown in our price check bellow, the premium price for D-Box at a recent Godzilla screening was $27 for a ticket vs $21 without D-Box. Anecdotally, at this particular showing we checked, D-Box seats were roughly half sold out in advance an otherwise mostly empty theatre.

Our movie night: CVI’s first movie review - Weapons

The premise of D-Box seats – to us – makes sense. It could make a movie more immersive, so long as it is executed well. But, is it executed well and is the immersion worth it? We decided to try a movie we were skeptical it would be worthwhile for, the movie Weapons. Set in the fictional town of Maybrook, Illinois, Weapons revolves around the terrifying disappearance of 17 third graders—all vanishing overnight at exactly 2:17 a.m.—leaving only one child, Alex, behind. (Queue suspenseful music).

We purchased tickets in advance. As with other showings we looked at, the D-Box seats seem to sell first vs regular seating. At actual showtime, the theatre was maybe 40% full with most D-Box seats taken. When arriving at the theatre we went to, D-Box was advertised prominently.

The chair experience

The chairs themselves are quite comfortable. They are better than the regular chairs (softer and bigger), though not as comfortable as a recliner experience.

Each chair has a button control system that lets you control the intensity of the movement. So what is the movement exactly? We have to say it was quite neat. Sometimes the effect is subtle, like the chair leaning with the camera panning, or rumbling slightly during a car ride scene. Other times, it is very evident, like when one of the characters was being picked up and slammed down (by evil!); the chair synced to the movements. The interesting thing is that we did not “think” about the chair, i.e. it was not distracting. It just added to the experience.

The takeaway? The Canadian Value Investors Beavertail Scale Review – 3 out of 5 Tails for Weapons, but the chair was worth it. We would repeat the experience (with a different movie).

The key here is the actual execution. Our understanding is that it requires about 200 hours to process a movie for D-Box and is a bit of an art. They seem to have the process down with online reviews we found, like the one below, being generally positive (i.e. “worth it for the right type of movie).

Other theatres

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