Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
StorageVault Canada Inc. (SVI-X) says it has entered into three separate agreements to acquire three stores in Ontario for $68.7-million.
The company said the acquisitions will give it 27 stores (58 when including managed stores) in the Ontario market and 93 stores (151 when including managed stores) across Canada.
**
Transcontinental Inc. (TCL.A-T, TCL.B-T) says it’s raising $250-million in a bought-deal financing of subscription receipts.
It has entered into an agreement with a syndicate of underwriters that will buy 9.4 million subscription receipts of TC Transcontinental at a price of $26.60 each.
The net proceeds will be used to partially finance the acquisition of Coveris Americas for $1.7-billion.
**
Calian Group Ltd. (CGY-T) says its CEO Kevin Ford “suffered a cardiovascular event over the Easter weekend.” The company described his prognosis as “good” and he is expected to fully recover and return to work in the next four-to-six weeks.
“The company is built on a strong backbone of highly qualified individuals and I have all the confidence in my management team’s ability to carry on while I’m away,” stated Mr. Ford in a release. “I look forward to being able to touch base with my team as I recover.”
During Kevin’s absence, the board initiated its emergency succession plan and established a CEO operating committee.
**
Dream Hard Asset Alternatives Trust (DRA.UN-T) says it recently completed the acquisition of the Hard Rock Hotel & Casino in Las Vegas, Nevada as part of a consortium of partners, led by Juniper Capital Partners and Fengate Real Estate Asset Investments. “The partnership plans to open a re-conceptualized and revitalized property, the Virgin Hotels Las Vegas, in the late fall of 2019,” the company stated. “Virgin Hotels, the lifestyle brand established by Virgin Group founder Sir Richard Branson, is also part of the consortium of investing partners, alongside other private investors.”
Dream Alternatives contributed US$29.0 million for about a 10-per-cent equity investment in the partnership, “which was used to fund the purchase price for the hotel, including transaction costs, and will also be used to fund the planned capital expenditures required to convert the property to the Virgin Hotels Las Vegas.”
The trust said the investment is expected to provide it with a strong after-tax net income and cash distributions
**
PetroShale Inc. (PSH-X) says its acquired additional acreage in its South Berthold core area for US$17.8 million. The acquisition was funded through the company’s existing senior credit facility. “This acreage is largely undrilled and has the potential to add a significant number of new net locations to PetroShale’s high-quality drilling inventory,” the company stated.
**
CohBar Inc. (CWBR-Q,COB.U-X), a biotechnology company developing mitochondria based therapeutics (MBTs) to treat age-related diseases, a net loss of $2.8-million or 7 cents in the fourth quarter compared to a net loss of $1.7-million or 5 cents per share a year earlier.
**
Callidus Capital Corp. (CBL-T)’s net loss worsened in the fourth quarter of 2017 as it took a big hit on a loan to a troubled energy firm, the lending firm said late Monday.
Callidus, which is majority-owned by private-equity firm Catalyst Capital Group Inc., also said it had nothing material to report on a sale process for the company that has been under way for about a year and a half. Investors in Callidus, a publicly-traded firm that lends to distressed companies, have been waiting for some indication of whether a deal might still be in the cards.
In the fourth quarter, the company said it lost $171.6-million, or $3.37 a share, compared with a year-earlier loss of $58.5-million, or $1.16 a share. Revenue in the period rose 33 per cent to about $53-million.
For the year, Callidus lost $218.5-million, compared to a $1.2-million profit in 2016.
The company, led by Catalyst chief executive Newton Glassman, said it recorded provisions for loan losses and impairments of $217.4-million for the full year, with the vast majority of that coming in the fourth quarter. That included $131.9-million for an energy-sector loan.
It did not name the borrower responsible for the bulk of the provision. Callidus said the company operates in a South American country where the military has apparently assumed control of the state-owned oil company that is its main customer. In addition, the Canadian and U.S. governments have prohibited some business activities in the country.
-- Jeffrey Jones
**
Element Fleet Management Corp. (EFN-T) issued a “clarification” regarding an Apri 2 news release from Celadon Group Inc. “including certain disclosures” regarding its joint venture with 19th Capital Group LLC.
“The disclosures by Celadon, including the restatement of its prior financials, do not impact Element’s accounting treatment of the joint venture or the business plan related to it,” the company stated. “The company has recently completed its year-end audit, in which it considered matters related to 19th Capital in detail, and Celadon’s disclosure does not alter the company’s conclusions or year-end disclosure.”
**
Nautilus Minerals Inc. (NUS-T) says it continues to arrange bridge loans from Deep Sea Mining Finance Ltd., which it says are expected to form part of a larger secured structured credit facility of up to US$34-million to be provided by the same lender.
To date, Nautilus says it has received about US$9.65-million in bridge loans from the lender. “The bridge loans will assist the company’s immediate working capital requirements and facilitate payments required to continue the development of the company’s seafloor production system,” it stated in a release.
**
RavenQuest BioMed Inc. (RQB-CN) says it has signed a memorandum of understanding to buy Western AgriPharma Ltd., a late-stage applicant with Health Canada in the development of a 125,000-square-foot cannabis production facility in Port Mellon, B.C.
“The Western AgriPharma facility would be RavenQuest’s first 100-per-cent owned, purpose-built, large-scale facility to incorporate our entire suite of proprietary grow technologies,” said George Robinson, CEO of RavenQuest.
“The memorandum of understanding entered into with WAL does not set forth the terms of a potential transaction nor have such terms been negotiated or finalized,” the company stated.
**
Copper Mountain Mining Corp. (CMMC-T) says the Federal Court of Australia approved its acquisition of Altona Mining Ltd.
The company also said it has the approval to list on the Australian Securities Exchange.
**
Alaris Royalty Corp. (AD-T) says Kimco Holdings, LLC has closed the previously disclosed debt refinancing with a new senior lender to replace existing senior debt and subordinated debt. Kimco will start monthly distributions to Alaris of US$100,000 on April 15.
“Since distributions ceased from Kimco, Alaris has taken a number of steps to preserve the long-term value of a long-standing and profitable business. We are pleased to be turning a significant corner with Kimco with the restart of partial distributions and the addition of their new banking partner and we look forward to continued progress over the long-term,” said Steve King, CEO of Alaris.