Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Nevsun Resources Ltd. (NSU-T; NSU-N) says it has a deal to be taken over by Zijin Mining Group Co. Ltd. for $6 per share in cash, which values the company at $1.86-billion.
The $6 per share offer is a 57-per-cent premium over Nevsun's unaffected closing price of $3.82 on May 7, the day Lundin Mining Corp. first publicly announced its intention to acquire Nevsun, the company stated. It said the offer is $1.25 above Lundin's $4.75 per share hostile takeover bid launched on July 26.
"This premium transaction is an excellent outcome for our shareholders, and the result of a rigorous and competitive global process to generate maximum value for Nevsun's outstanding assets," said Ian Pearce, chair of Nevsun's board. He said the offer "better reflects the fundamental value of Nevsun's mining and development assets, while also providing an appropriate change of control premium to our shareholders."
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The Supreme Cannabis Company (FIRE-X) said it has obtained Health Canada approval to commence cultivation on approximately 20,000 square feet of additional flowering rooms at its 7ACRES facility. The company said the additional flowering rooms will increase total potential flowering capacity to 90,000 square feet and, assuming a current yield, will bring 7ACRES' annual production potential from 10,000kg to 13,330kg.
"As the first coast-to-coast premium cannabis brand in Canada, 7ACRES is already one of the fastest scaling producers in the country. This flowering room expansion continues to increase our capacity and improve our ability to meet the demand of cannabis enthusiasts upon legalization of adult use cannabis in Canada," said John Fowler, CEO of Supreme Cannabis.
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Goodfood Market Corp. (FOOD-T), a meal-kit company in Canada, said it has reached 89,000 active subscribers as of Aug. 31, representing an increase of 13,000 active subscribers or 17 per cent over May 31 and an increase of 187 per cent over Aug. 31, 2017.
"We added a record number of active subscribers in fiscal 2018 with the addition of 58,000 subscribers during the year. Subscriber growth in the fourth quarter, traditionally our slowest quarter because of the summer vacation period, was higher than expected, driven by the addition of new menu options and our Western Canada expansion which is performing ahead of expectations," said Jonathan Ferrari, CEO of Goodfood Market Corp.
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Rocky Mountain Dealerships Inc. (RME-T) announced an increase in its annual dividend to 49 cents per common share, an increase of 3 cents or 6.5 per cent, to be paid in equal quarterly payments.
"RME has built its business on dependability to customers, and it is that principle that guides us when it comes to paying dividends to shareholders," stated Matthew Campbell, chairman of the board."We believe that the reliable payment of a dividend to shareholders is a matter of trust. We have never cut or suspended our dividend in our company’s history, and so when we increase the amount, we do so only when we have a high degree of confidence in our ability to meet the obligation for the foreseeable future.”
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CannTrust Holdings Inc. (TRST-T) says it will collaborate with Hamilton Health Sciences and McMaster University in Hamilton, Ont. on upcoming medical research studies.
"Hamilton Health Sciences and McMaster are known worldwide for innovation in education and research, and for its role in developing evidence-based medicine," the company stated. "This partnership strengthens CannTrust's existing commitment to innovation and its contribution to generating evidence regarding the therapeutic use and clinical effectiveness of cannabinoids."
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Kinaxis Inc. (KXS-T) announced a strategic alliance with Qunie Corp. of Japan, a supply chain business consulting firm.
The company said Qunie is "uniquely poised to support the growth of Kinaxis' client base in Japan and throughout Asia Pacific."
"Forging strategic partnerships with highly respected companies such as Qunie Corporation is critical to helping us drive global growth," said John Sicard, CEO of Kinaxis.
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Quarterhill Inc. (QTRH-T; QTRH-Q) says its Wi-Lan Inc. subsidiary has signed a multi-year running royalty license agreement with Doro AB. The licensed patents relate to handset technology, the company stated. It said terms of the license agreement are confidential.
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Valens GroWorks Corp. (VGW-CN), which specialized in cannabis extraction processes, announced a number of board changes. It said Chris Irwin, Nitin Kaushal, Ashley McGrath, and Chris Buysen have joined the board, while John Cullen has resigned as a director of the company and Robert O'Brien has also resigned as a director and from his position as chief science officer.
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Orocobre Limited (ORL-T) says the government of Argentina has formally announced the establishment of temporary foreign trade measures aimed at reducing the Argentine fiscal deficit.
A temporary special export duty will be immediately applied to all exports of Orocobre's 66.5 per cent subsidiary Sales de Jujuy SA and Borax Argentina SA, the company said. The duty is approximately 8 per cent on export sales revenue from SDJ and Borax, based on the U.S.-Argentina exchange rate.
"Since April 2018 the Argentine Peso has devalued by approximately 90 per cent against the US dollar, with devaluation now running ahead of Argentine inflation," the company stated.
It said 45 per cent of SDJ's costs of production and 60 per cent of Borax's costs of production are Argentina-dollar denominated.
"Consequently, the company anticipates that the increase in export duties will be counterbalanced to some extent by the recent rapid devaluation of the Argentine Peso and the positive effect that this will have on production costs for both SDJ and Borax," the company said.
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Denison Mines Corp. (DML-T; DNN-N) says it plans to acquire Cameco's minority interest in the Wheeler River Uranium Project for about $16-million in shares. The deal is subject to certain rights of first refusal in favor of JCU (Canada) Exploration Company Limited, Denison said in a release.
Denison has agreed to acquire 100-per-cent of Cameco's interest, which is expected to be approximately 24 per cent in the Wheeler River joint venture, in exchange for about 24.6-million common shares at a price of 65 cents each.
The acquisition of Cameco's interest in the Wheeler River JV will increase Denison's interest in the project to about 90 percent.
"We believe this transaction represents a unique opportunity to add to our existing controlling interest in the project and offer significant value accretion to Denison shareholders," said David Cates, CEO of Denison.
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Uni-Select Inc. (UNS-T) says it has reached an agreement with its banking syndicate to amend and extend its credit facility.
Previously, the credit facilities included a $525-million revolving credit facility with a four-year maturity, coupled with a $100-million term loan with a semi-annual repayment schedule. The new agreement combines these two facilities into one revolving credit facility of $625-million with a five-year maturity, effectively extending it by one year, the company said in a release.
"This new agreement provides us with greater flexibility to manage our working capital requirements and deleveraging objective," stated Eric Bussières, the chief financial officer of Uni-Select.
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Stelco Holdings Inc. (STLC-T) announced a secondary equity offering after markets closed on Tuesday. The proposal is for eight million shares to be sold by LG Bedrock Holdings LP and Foundation Industries Group LLC and collectively with Lindsay Goldberg.
Bedrock Industries B.V. currently holds 65.3 million common shares, representing 73.5 per cent of the stock. The net proceeds of the offering will be paid directly to the selling shareholders. The company will not receive any proceeds.
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Agellan Commercial Real Estate Investment Trust (ACR.UN-T) says it has an agreement to purchase a light industrial property in Austin, Texas for a total price of US$53-million. "The REIT, together with a private Canadian-based investor, intend to acquire the property through a strategic partnership, of which the REIT will have a 50-per-cent interest," it stated in a release. "The REIT will also provide asset management services to this new partnership. The REIT’s portion of the purchase price for this property is expected to be satisfied with cash on hand and/or proceeds from debt financing."
It's also buying a 50-percent interest in an industrial distribution center in Atlanta, Georgia for US$8.35-million. "This acquisition will be undertaken solely by the REIT and is expected to be purchased with cash on hand," it stated.
“The REIT is excited to expand its presence in both the Atlanta and Austin markets in which the REIT has strong knowledge and has had historical success,” said CEO Frank Camenzuli. “Although both properties currently have strong tenancies, they provide the REIT with the future flexibility to re-configure the spaces for multiple tenancies.”