A machine engraves information on an ingot of 99.96 percent pure palladium at the Krastsvetmet nonferrous metals plant in Russia's Siberian city of Krasnoyarsk on April 12, 2012.Ilya Naymushin/Reuters
Our roundup of Canadian small-caps making news and on the move today.
Toronto-based North American Palladium Ltd. (PDL-T)said it has concluded its strategic review process during which no superior proposal was received. As a result, the company has entered into a definitive recapitalization agreement with Brookfield Capital Partners Ltd. to effect the proposed recapitalization the company previously announced on April 15.
North American Palladium has also entered into an agreement with Brookfield to secure a $25-million bridge loan facility providing temporary working capital support as the company's milling operations have been suspended.
The company said the recapitalization will be through a court approved plan of arrangement under the Canada Business Corporations Act. Under the terms of recapitalization agreement, the amounts owed to Brookfield will be converted into equity, resulting in Brookfield owning 92 per cent of the company's common shares, and its 2012 and 2014 debentures will be converted to common shares, representing 6 per cent of its shares outstanding. In the end, existing shareholders will hold 2 per cent of the recapitalized company. The company will also undertake a $50-million rights offering to raise equity, and all shareholders will be able to participate.
The recapitalization won't impact employees, trade creditors, equipment leases and suppliers, the company said.
"Proceeding with the recapitalization gives the company the financial security and certainty needed to pursue its longer-term growth objectives at LDI [the Lac des Iles mine]," said Phil du Toit, president and CEO.
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Victoria-based T-Bird Pharma Inc. (TPI-X), a licensed producer to cultivate and sell marijuana under the Marihuana for Medical Purposes Regulations (Canada), said it has changed its name to Emerald Health Therapeutics Inc. as approved by its board of directors and the TSX Venture Exchange. Effective June 23, the company's shares will begin trading on the TSX Venture Exchange under the new symbol EMH.
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Longueuil, Que.-based D-BOX Technologies Inc. (TSX:DBO), a leader in innovative motion technology, reported revenues of $20.6-million for the 2015 fiscal year ended March 31, up 17 per cent from revenues of $17.6 million for prior year. Revenue for the quarter was up 34 per cent to $6.7-million. Analysts had expected revenue of $4.5-million for the quarter.
Net earnings for the quarter were $850,000, compared to a year-ago loss of $43,000. The net loss for the year was $478,000 compared to a year-ago loss of $1.6-million.
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Stella-Jones Inc. (SJ-T) said it has signed an agreement to purchase the shares of Ram Forest Group In.c and Ramfor Lumber Inc. for $58-million. Ram Forest Group manufactures and sells pressure treated wood products and accessories to the retail building materials industry. Ramfor Lumber is a lumber purchasing entity serving Ram Forest's subsidiaries. The transaction is expected to close in October 2015.
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Loyalist Group Ltd. (LOY-X) provided three-year financial projections in an effort to "restore liquidity and strengthen its financial position." Last week, the company reported a big earnings miss and announced changes in management. The new management said it does not plan on providing second-quarter earnings guidance. "We have already implemented a number of staff reductions at the corporate level which we believe will improve productivity and internal communications, thereby strengthening overall morale," said Shawn Klerer, Loyalist's CEO. "Our next order of business is addressing the near term liquidity needs in order to achieve a positive outcome with our senior lender, which will also enable us to mend strained relationships with our suppliers and employees who have been disappointed with our past approach to managing working capital."
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Taiga Building Products Ltd. (TBL-T) posted a net loss in the fourth-quarter of $0.02 per share, prompting the company to put a hold on its dividend payments. "In light of weaker economic forecasts in Canada and concerns about market outlook in Alberta, the board of directors has decided not to declare and pay the first instalment payment of its semi-annual dividend policy with respect to the 2015 fiscal year's net earnings," the company said. "The decision regarding the second instalment payment with respect to the 2015 fiscal year's net earnings will be addressed in early January 2016."
Tim Shufelt