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Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
The Second Cup (SCU-T) says it has established a special committee to review its strategic options.
The formation of a committee follows comments by the company earlier this year that it was pursuing options to refinance its debt.
Such strategic reviews by companies often result in a sale or other major transaction.
The coffee shop chain has struggled to hold onto market share as rivals such as Tim Hortons and Starbucks have expanded.
The company made the announcement as it reported a net loss of $75,000 or a penny per share for the third quarter ending Sept. 24, an improvement from the $1.1 million loss or nine cents per share for the same period last year.
Revenue was nearly $7.7 million, down from almost $9.3 million in the same quarter in 2015.
The Second Cup was founded in 1975 and has more than 295 franchised and company-owned cafes in Canada.
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Sports equipment maker Performance Sports Group Ltd. (PSG-T; PSG-N), the owner of Bauer and Easton sports gear, confirmed Monday that it has filed for bankruptcy protection in Canada and the U.S. after completing its strategic review and failing to file its 2016 financial statements by Oct. 28.
The company said in a news release that Sagard Capital Partners LP, PSG's largest shareholder at 17 per cent, and Fairfax Financial Holdings Ltd. have also agreed to acquire the Exeter, N.H.-based company for $575-million (U.S.). A court-supervised auction is set to take place, and this offer will act as the minimum acceptable bid, the release said.
PSG has also secured $386-million in new debtor-in-possession financing from Sagard, Fairfax and some of its existing lenders to fund the auction and sales process and provide working capital as it continues operating during the restructuring.
Brookfield Capital Partners Ltd., which holds about 13 per cent of PSG's shares and had also signed a confidentiality agreement with Sagard in relation to the company, was absent from the proposed bid on Monday. The company could still be included in PSG's restructuring later in the process, according to a source familiar with the negotiations told The Globe and Mail.
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Cipher Pharmaceuticals Inc. (CPH-T), a Canadian specialty pharmaceuticals manufacturer, has hired an investment bank to review strategic alternatives, including a potential sale, people familiar with the matter said.
The strategic review comes amid increased U.S. scrutiny of specialty drug prices, which has weighed on the valuations of many Canadian specialty pharmaceutical companies with U.S. revenues.
There is no certainty that a sale of Cipher will occur, the people cautioned, asking not to be identified because the deliberations are confidential.
Cipher declined to comment.
Toronto, Ontario-based Cipher, which has a market capitalization of $89.5 million, specializes in treatments for skin disorders. Its products include Nuvail, a topical film that treats fragile nails, and Bionect, which treats skin irritations. It has about $35 million in debt, according to regulatory filings.
Cipher shares have dropped more than 70 percent from 2015 highs amid a broader pullback in the specialty pharmaceutical sector that has also impacted shares of Valeant Pharmaceuticals International Inc
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Slate Retail REIT (SRT.UN-T) is buying Armstrong Plaza, a 95-per-cent occupied shopping centre, in the Greenville, S.C. area for $5.25-million (U.S.).
Closing is expected to be completed in the fourth quarter of 2016, the company said.
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Callidus Capital Corp. (CBL-T) has appointed Goldman, Sachs & Co. as financial adviser to lead its privatization process.
The company also announced an increase in the size of the outstanding substantial issuer bid by 1.5 million shares or approximately an additional 3 per cent of the shares outstanding shares and is extending the offer to Nov. 30 from Oct. 31.
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RMP Energy Inc. (RMP-T) is selling its Ante Creek asset for $114.3 -million.
It said the sale will leave it with no bank debt and positive working capital.
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Precision Drilling Corp. (PD-T; PDS-N) is raising $350- million in a private offering of senior notes due in 2023.
"The notes will be guaranteed on a senior unsecured basis by current and future U.S. and Canadian subsidiaries that also guarantee Precision's revolving credit facility and certain other future indebtedness," the company said in a release.
It plans to use the net proceeds from the offering to redeem $200-million (Canadian) of outstanding senior notes due in 2019 "and for other debt repurchases and general corporate purposes."
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With files from Reuters and The Canadian Press