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 Catalyst Capital Group Inc. announced on Monday that it has amended its offer to purchase common shares of Hudson’s Bay Co. (HBC-T) at a price of $10.11 per common share payable in cash. The maximum number of shares to be purchased under the Catalyst offer has been increased to 19,782,393 shares, or about 10.75 per cent of the issued and outstanding common shares, from 14,836,795 shares, the company stated, reflecting a total value of $200-million. No other terms of the Catalyst offer have been amended, the company stated.
"The insider buyout proposal made by the Baker Group is not reflective of the fair value of the company's common shares, which is to the benefit of the Baker Group and the detriment of HBC's minority shareholders," the company stated in its release. "Catalyst believes that the insider buyout proposal greatly undervalues the company across each of its real estate, retail and iconic brand attributes."
See also: Baker's $1-billion privatization bid 'inadequate,' HBC special committee says
**
Just Energy Group Inc. (JE-T; JE-N) announced on Monday that Patrick McCullough has “departed the company” as president and CEO and has stepped down from the board and the company’s subsidiaries, effective immediately.
Director Scott Gahn has been appointed president and CEO.
**
Wayland Group (WAYL-C) is proposing to sell its Canadian business, including its Langton, Ont. production facility to Cryptologic Corp. in a deal valued at about $230-million, plus liabilities.
The proposal sees Wayland receive about 57.5 million Cryptologic common shares at a deemed issue price of $4 per share, which is expected to represent approximately 70 per cent of the issued and outstanding Cryptologic common shares.
If the deal closes, Cryptologic will be a single-purpose cannabis company with a cash balance of at least $25-million, the company stated.
**
Endo International plc (ENDP-Q) reported second-quarter revenues of $700-million, a decrease of 2 per cent compared to revenues of $715-million for the same quarter last year. Its net loss from continuing operations of $98-million or 43 cents per share compared to a reported net loss from continuing operations of $52-million or 23 cents a year earlier.
Adjusted earnings came in at 52 cents down from 76 cents a year earlier and versus expectations of 48 cents. Analysts were also expecting revenue of $694.6-million in the latest quarter.
**
Transat A.T. Inc. (TRZ-T) issued a release on Tuesday announcing that it is filing a complaint with the Tribunal administratif des marchés financiers, regarding what it described as Groupe Mach Acquisition Inc.'s “highly abusive, coercive, misleading and conditional offer” to acquire 6.9 million Class B voting shares of the company.
"Transat's board of directors and the special committee of the board, supported by their financial and legal advisors continue to unanimously reiterate that the arrangement with Air Canada is in the best interest of Transat and its stakeholders and is fair to its shareholders," the company stated. It also recommended shareholders vote for the plan of arrangement with Air Canada and reject the Mach proposal.
Montreal real estate developer Group Mach on Friday offered to buy at least 6.9 million, or about 19.5 per cent, class B voting shares of the company at $14. Group Mach is looking to block Air Canada’s purchase of the Canadian tour operator.
Transat in June accepted Air Canada’s all-cash bid of $520-million or $13 a share, over a $14 per share offer from Mach. Mach said it plans to use the purchased shares to vote against the Air Canada-Transat deal, saying the offer “greatly undervalues” Transat. However, Mach said it has no intention to launch a formal hostile takeover bid and added that it will not raise the $14 offer as long as the current Transat board is in place.
-with files from Reuters
**
Canopy Rivers Inc. (RIV-X) announced that its portfolio company TerrAscend Corp. (TER-C) has signed a definitive agreement to acquire Ilera Healthcare, a cannabis cultivator, processor, and dispensary operator in Pennsylvania.
"TerrAscend's rapid expansion in the U.S. has been driven by strategic, accretive acquisitions of quality operators with strong track records of success," said Narbe Alexandrian, CEO of Canopy Rivers. "We view the Ilera acquisition as another important step by TerrAscend as it grows its revenue-generating operations, expands its U.S. footprint in new states, and continues to scale its global business operations."
**
Martinrea International Inc. (MRE-T) reported total sales of $948.5-million in the second quarter up from $921.7-million a year earlier and below expectations of $971.9-million. “The total increase in sales was driven by a year-over-year increase in the North America operating segment, partially offset by decreases in Europe and the Rest of the World,” the company stated.
Net income came in at $28.1-million or 34 cents per share versus net income of $55.7-million or 64 cents a year earlier. Adjusted net income was $54.6-million or 66 cents per share versus $55.5-million or 64 cents per share a year earlier. Analysts were expecting adjusted earnings of 65 cents per share.
**
Knight Therapeutics Inc. (GUD-T) announced that it has reached an agreement with the pan-Canadian Pharmaceutical Alliance (pCPA) for a letter of intent regarding Probuphine, which is describes as a "convenient, confidential and effective option for the treatment of opioid use disorder.
In the release, the company quotes Dr. Lionel Marks de Chabris, assistant professor at the Northern Ontario School of Medicine, and Chronic Pain and Addiction Specialist in Sudbury, Ont. as saying the implant "ensures that patients no longer need to worry about missing a dose, not getting a prescription or not getting to their pharmacy on time, which helps normalize their lives and reinforce their recovery.”
Probuphine is listed for reimbursement through the public insurance plans administered by Alberta, Saskatchewan and the Non-Insured Health Benefit (NIHB), the company stated. Knight also said it's working with other jurisdictions to finalize listings across the country " to ensure Canadian patients have public access to this novel treatment option."
**
Semafo Inc. (SMF-T) announced a pit wall failure at its Mana mine in Burkina Faso. “No mining was underway in the area, and no-one was injured,” the company stated.
"Currently, we are mining in the southern part of Wona pit. However, under the 2019 mine plan, some 45,000 ounces were expected from the northern portion of the pit between late August and year-end. To mine securely and regain access to ore in Wona North, we will have to push back the pit wall and mine approximately 6 million tonnes of waste material," the company stated. It sais mining in the northern part of the pit will be deferred until the first quarter of 2020. These 6 million tonnes were part of the life of mine plan in 2021 and therefore do not represent additional tonnes or cost."
The company added that will be "insufficient ore to feed the mill for approximately 10 weeks. We now expect to suspend the processing of ore at Mana between mid-August and end of October."
The company estimates the impact at Mana to be approximately 40,000 to 50,000 ounces of lower production than originally contemplated. Annual guidance at Mana has been revised to 130,000 to 140,000 from the original 170,000 to190,000 ounces.