Gold bars.farakos/Getty Images/iStockphoto
Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
JDL Gold Corp. (JDL-X) is buying Luna Gold Corp. (LGC-T) and will be known as Trek Mining Inc., the companies said in a release late Wednesday.
JDL will acquire all outstanding shares of Luna Gold in exchange for 1.105 JDL common shares for each Luna Gold common share.
The exchange ratio values Luna shares at $2.20 each, based on the JDL share price at market close on Jan. 31, which it said is a 23-per-cent premium to its Jan. 31 share price.
Christian Milau from Luna Gold will be CEO and Greg Smith from JDL will be president of the new company.
"Trek Mining will be well-funded with approximately $50-million (U.S.) in cash and no cash debt, and will be strongly positioned to advance Luna Gold's Aurizona gold project to production," the companies siad.
If the deal closes, the $20-million term debt facility due from Luna to Sandstorm Gold Ltd. (SSL-T; SAND-N), plus accrued interest, will be settled in equity or a combination of cash and equity of Trek Mining.
Sandstorm will continue to hold the $30-million convertible debt facility that is due from Luna.
"As a material stakeholder in Luna, we are pleased with the proposed merger between Luna Gold and JDL and we fully support the proposal," stated Sandstorm CEO Nolan Watson.
**
Stuart Olson Inc. (SOX-T) is removing a $200-million private commercial project from its Dec. 31, 2016 backlog.
"While we are disappointed that we will not be involved with the construction of this project, changes in expectations around start-up timing, the construction schedule and project fees occasionally require that we remove a project from backlog," stated CEO David LeMay in a release.
He said removing the project won't impact forecasted revenue or earnings expectations for 2017 and 2018.
"In addition, we expect to disclose backlog at the end of 2016 similar to the $2-billion reported at the end of 2015, and given the strong pipeline of new infrastructure project opportunities, we expect to maintain this near record level in 2017," he said.
**
Exco Technologies Ltd. (XTC-T) reported first-quarter sales of $153.1-million, up 17 per cent compared to $130.9-million in the same quarter a year ago.
Analysts were expecting revenue to come in at $119-million.
Consolidated net income for the quarter was $11.5-million or 27 cents per share compared to $11.8 million or 28 cents per share a year ago, or down 3 per cent.
The company said net income in the quarter was adversely affected by $1.2 million of non-operating costs associated with the permanent closure of ALC's operations in Lesotho.
**
SouthGobi Resources Ltd. (SGQ-T) says the Khan-Uul District Civil Court of First Instance in Mongolia has dismissed the litigation raised by Magnai Trade LLC (MT) against SouthGobi Sands LLC (SGS), a subsidiary.
It was in relation to a claim of approximately $8.9-million "on the basis that if the dispute cannot be amicably resolved, it must be settled by arbitration in Mongolia, rather than litigation," the company said in a release.
It said that's in accordance with provisions of the fuel supply agreement between SGS and MT.
"The company values its business relationship with MT and will continue to resolve the dispute with MT through continuing business discussions, or through arbitration if a resolution cannot be reached," it said.
**
North American Energy Partners Inc. (NOA-T; NOA-N) announced the renewal of a major, five-year master service agreement (MSA).
"We have come through the long and deep cyclical downturn in the oil industry with our four major MSAs all intact or significantly expanded," stated CEO Martin Ferron in a release. "Importantly, each of these key agreements run until at least 2020 and, therefore, we believe that collectively they will underpin our revenue base for the next three years."
**
Western Potash Corp. (WPX-T) announced a corporate reorganization that will create a new company with more diversified assets.
Western Potash said it has created a company, Western Resources Corp., that will acquire all of the issued and outstanding common shares on the basis of 0.2 of a Western Resources common share for each one Western Potash common share.
Western Resources will become the TSX-listed successor company to Western Potash.
"To diversify its assets, Western Potash wishes to be able to pursue investment opportunities in other resource properties that may contain metals or minerals other than potash and in jurisdictions that may be outside of Saskatchewan," it said in a release. "As its resource properties become more advanced, Western Potash also wishes to be able to consider alternative value enhancing opportunities for those resource properties, such as joint ventures, spin-offs or business combinations."
**
Rogers Sugar Inc. (RSI-T) provided an interim first-quarter report which says volume was 168,376 metric tonnes compared to 156,926 metric tonnes in the comparable quarter of last year.
Adjusted gross margin amounted to $29.1-million for the quarter, an increase of approximately $3.3-million versus the first quarter last year, "due mostly to an increase in sales volume."
Adjusted EBIT (earnings before interest and taxes) was $21.5-million for the first quarter of fiscal 2017 versus $19.9-million a year earlier.
Free cash flow was $1.4-million higher year-over-year, "mostly due to higher adjusted gross margin of $3.3-million and lower pension contributions of $1.6-million.
"Looking forward, we anticipate the strong first quarter volume to be tempered somewhat by recent competitive pressure in the liquid segment," the company said in a release.
**
Emerald Health Therapeutics Inc. (EMH-X) is raising $10-million in a bought-deal financing.
Underwriter Dundee Capital Partners is buying 7.4 million units of Emerald at $1.35 each.
Net proceeds will be used to expand its facility and for working capital and general corporate purposes, the company said.
**
Redknee Solutions Inc. (RKN-T) says Telekom Srpske has awarded the company multi-million contract to support prepaid and postpaid subscribers from a single platform.
"Demand continues to grow for Redknee's latest monetization solution, as service providers seek to quickly deploy innovative solutions and services," stated RedKnee CEO Lucas Skoczkowski in a release.
**
Resolute Forest Products Inc. (RFP-N; RFP-T) reported a net loss of $45-million, or $0.50 per share for the fourth quarter, compared to a net loss of $214-million, or $2.39 per share, in the same period in 2015.
Sales were $889-million, similar to the fourth quarter of 2015.
Excluding special items, the company reported a net loss of $3-million, or $0.03 per share, compared to a net loss of $26 million, or $0.29 per share, in the fourth quarter of 2015.
Analysts were expecting sales of $905-million and earnings of $0.09 per share.
**
Stingray Digital Group Inc. (RAY.A-T; RAY.B-T) reported third-quarter revenue of $25.9-million, an increase of 12.3 per cent compared with revenues of $23.1-million a year earlier.
The increase was primarily due to acquisitions and growth for Music Videos on Demand in the U.S. Net income was $2.7-million, or $0.05 per share, compared to $3.2-million, or $0.06 per share for the same period last year. Adjusted net income remained the same at $6.2-million, or $0.12 per share, the company said in a release.
**
NeuLion, Inc. (NLN-T) says it has been selected by the University of New Orleans to build a new digital ticketing platform for men's and women's basketball and baseball.
"Today's announcement highlights NeuLion's continued growth in the college market," said NeuLion's senior vice president Tim Vargas in a release.
**
Grande West Transportation Group Inc. (BUS-X) has received a new order for 33 buses from the City of Edmonton valued at about $13-million.
It's the third order from the city since September 2016, the company said.
**