Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Shawcor Ltd. (SCL-T) said late Sunday that it plans to acquire ZCL Composites Inc. (ZCL-T) for $10 per share in cash, a 37-per-cent premium to the closing price on Friday. Shawcor said the proposal values ZCL at an enterprise value of approximately $312-million, including $4-million of net debt outstanding as at Sept. 30. ZCL is a manufacturer and supplier of fibreglass reinforced plastic underground storage tanks.
"The acquisition of ZCL is compelling for Shawcor as it allows us to leverage our material science expertise to broaden our composite product and service offering. From a financial perspective, the acquisition will generate meaningful accretion to our shareholders without any dilution and add further stability to our earnings base," stated Steve Orr, Shawcor’s CEO.
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Amarc Resources Ltd. (AHR-X) announced late Friday that Hudbay Minerals Inc. (HBM-T) has relinquished its options to earn an interest in the IKE porphyry copper-molybdenum project near Gold Bridge, B.C. and also the JOY gold-copper project in the Toodoggone region of north-central B.C. “Amarc continues to be fully committed to unlocking the emerging value of its 100-per-cent owned IKE, JOY and DUKE porphyry copper-gold and copper-molybdenum projects and is now considering new funding partners,” the company stated.
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Midland Exploration Inc. (MD-X) said it has completed a private placement by issuing to the Caisse de dépôt et placement du Québec 1.1 million units at 90 cents each for gross proceeds of $1-million. Each unit consists of one common share and one half warrant of Midland. The company said it will use the private placement proceeds to fund its exploration plan and for general corporate purposes.
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Village Farms International Inc. (VFF-T) announced it has filed an application to list its common shares on Nasdaq Capital Market under the symbol “VFF.”
"As a company with substantive U.S. assets and operations and, with our recently announced intention to aggressively pursue potential opportunities in the now federally legal U.S. hemp and CBD industry, the listing of our common shares on Nasdaq is intended to provide broader exposure to, and greater liquidity for, U.S. investors," said Michael DeGiglio, CEO of Village Farms. "A Nasdaq listing will provide Village Farms with access to the largest equity market in the world to support our intended hemp and CBD growth strategy should U.S. state laws follow the U.S. federal decision to legalize hemp, as well as, potentially, for cannabis, in the event that it is federally legalized in the U.S."
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MTY Food Group Inc. (MTY-T) announced a 10-per-cent increase of its quarterly dividend payment from 15 cents per share to 16.5 cents per share.
"This increase represents the seventh increase since our first dividend declared in 2010. This increase further demonstrates not only our confidence in the ability to generate solid cash flows in the future, but also our confidence in our brands and our franchisee network," CEO Eric Lefebvre stated. "This increase will in no way affect our ability to aggressively pursue our growth strategy, whether organic or via acquisitions. We continue to expect great momentum in the growth of the company in the years to come."
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Organigram Holdings Inc. (OGI-X) announced a class action was certified against the company on Jan. 18.
"Certification is not a decision on the merits of the lawsuit, but simply deals with the proper procedure for a lawsuit, which allows it to continue to the next stage," the company stated. It said it's reviewing the decision "to determine whether it will appeal," and "intends to vigorously defend itself against this class action."
It said the lawsuit was filed with the Supreme Court of Nova Scotia on behalf of class members who purchased medical cannabis that was the subject of the company's voluntary product recalls in December 2016 and January 2017. Organigram said the lawsuit deals with the reimbursement of funds paid for the cannabis purchased by medical customers in 2016. The company said it has already voluntarily reimbursed "many of its customers for this recall via a comprehensive credit and refund program."
Organigram also said it has insurance to cover the cost of legal fees associated with the defense of the class action. “Insurance coverage may also cover some or all of any monetary damages associated with any resolution of this matter,” it stated. “While the ultimate outcome of any Court process is difficult to ascertain, Organigram management does not anticipate that the class action (including the resolution thereof) will impact its business or operations in any material manner.”
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Altius Minerals Corp. (ALS-T) announced it has entered into an agreement to acquire a 2-per-cent net smelter return royalty covering the Curipamba copper-gold-zinc project from Resource Capital Fund VI L.P. and RCF VI SRL LLC for US$10-million in cash.
The Curipamba Project, located in central Ecuador, is being developed under a 75:25 partnership between Adventus Zinc Corp. (ADZN-X) and Salazar Resources Ltd. (SRL-X). Altius currently holds 21 per cent of the outstanding shares of Adventus.
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