Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Aimia Inc. (AIM-T) said it has entered into a definitive share purchase agreement with Air Canada for the purchase of Aimia’s Aeroplan loyalty program for $450-million “on a cash-free, debt-free basis.”
Air Canada will assume the assets and employees of the business as well as the liabilities and obligations relating to the Aeroplan loyalty program, including $50-million of negative working capital and $1.9-billion of future redemption liabilities related to outstanding Aeroplan miles and an estimated $45 million of retirement and other benefit obligations, the company stated.
The agreement was unanimously approved by Aimia's board of Directors upon recommendation of a special committee of independent directors. Aimia will hold a special meeting of common and preferred shareholders on Jan. 8 to vote on the agreement.
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Pattern Energy Group Inc. (PEGI-T; PEGI-Q) announced the acquisition of a 35 megawatt-owned interest in the Stillwater Wind facility from Pattern Energy Group 2 LP for about $23 million in cash, "which represents less than a 10 [times] multiple of the five-year average cash available for distribution (CAFD), the company stated.
"This accretive acquisition is another proof point of our ability to execute our growth strategy and increase our CAFD without relying on issuing common equity," said Mike Garland, CEO of Pattern Energy.
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Wayland Group (WAYL-CN) said it has entered into an agreement to acquire 51 per cent of UK based Theros Pharma Ltd., an early stage company that has imported cannabis to the UK for patients with a prescription for medical cannabis.
"This transaction enhances Wayland’s global growth strategy and will provide the company with access to the UK market for sale and distribution of its products," the company stated.
The company has agreed to make an initial payment of $3.8-million British pounds ($6.4-million Canadian) followed by a second payment of $24-million British pounds ($40.7-million Canadian) "following certain milestones being achieved, including issuance to Theros of a license to cultivate cannabis in the UK or a license to import medical cannabis for use in the UK."
Both payments will be satisfied by the issuance of common shares of the company based on then-current market prices, but subject to a floor issue price of $1.65 per common share, the company stated. The stock closed at $1.42 on Friday.
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Altius Minerals Corp. (ALS-T) said the Genesee Limited Partnership, of which Altius is the general partner, has filed suit against the governments of Alberta and Canada. The suit claims $190-million in damages, “while describing actions that it feels were tantamount to expropriation of its royalty interest in the integrated Genesee mine and power plant in Alberta,” the company stated. More particularly, the suit claims an unlawful taking of its property and undue interference with its economic interests."
“Altius is a small Canadian company that relied upon a clearly defined policy and regulatory framework to make a major investment. We then suffered grave damages when these governments changed their policy in a manner that essentially expropriated our future royalty entitlements without compensation,” stated Altius CEO Brian Dalton. “While we fully respect the rights of both governments to change environmental and economic policy as they see fit, we believe that it is also reasonable for us, or any other good faith investor in Alberta and Canada, to expect fair compensation in accordance with the rule of law when it becomes the collateral victim of such policy change.”
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Canopy Rivers Inc. (RIV-T) said it has entered into an incremental funding agreement with its joint venture partner PharmHouse Inc. and amended the terms of the company’s global non-competition agreement with joint venture partner, 2615975 Ontario Limited to include additional rights in favour of the company in the event the joint venture partner begins operations in the U.S. cannabis market.
“When we initially created the PharmHouse joint venture, we established a partnership with thought leaders and operators from one of the world’s leading commercial agriculture and produce companies. With this incremental funding commitment and amendment to our non-competition agreement, we have fortified what is now a truly global partnership with our joint venture partner; a team that already has experience, infrastructure, and distribution network relationships in many of the world’s most appealing prospective cannabis markets,” said Bruce Linton, chairman and acting CEO of Canopy Rivers.
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Continental Gold Inc. (CNL-T) announced the resignation of Mateo Restrepo Villegas as president of the company, effective Nov. 30.
“Mateo has been an integral part of Continental since he joined the company in August 2015 and made many important contributions over the past three years. In particular, Mateo’s leadership in working with the Colombian and Antioquia Governments to help shape the company’s ‘Modern Mining’ platform will forever be engraved in our history,” stated CEO Ari Sussman.
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Cervus Equipment Corp. (CERV-T) announced the acquisition of Deermart Equipment Sales Ltd., which operates a John Deere dealership in Red Deer, Alta. The price of the acquisition wasn’t disclosed in the press release.
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Athabasca Minerals Inc. (ABM-X) said it has appointed Mark Smith as interim chief financial officer as of Nov. 30. Mr. Smith is the current vice president of finance for AMI Silica Inc. and will replace Lucas Murray. “The corporation thanks Mr. Murray for his dedication to Athabasca Minerals, and wishes him well in his future endeavours,” the company stated.
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North American Construction Group Ltd. (NOA-T; NOA-N) announced an upsized $300-million amended and restated credit agreement with its banking syndicate led by National Bank Financial alongside the closing of the asset purchase agreement with Aecon Group Inc. (ARE-T).
“The acquisition of the heavy equipment fleet of Aecon is an exciting milestone event for NACG and we were pleased to work with our supportive syndicate members to finance this important opportunity," stated CFO Jason Veenstra. "The credit facility is consistent with existing terms, maintains attractive rates and provides sufficient flexibility to allow for the $199-million asset transaction to close immediately.”
The credit facility more than doubles the company's borrowing capacity to $300-million "with an ability to increase the maximum borrowings by an additional $50-million, subject to certain conditions.
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MORE TO COME
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