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Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Performance Sports Group Ltd. (PSG-T) will be in the spotlight Tuesday after the stock had an unusual spike in the final hour of trading before the long weekend.
After seeing little activity for most of the day, PSG shares began to surge just after 3:10 p.m. on Friday. The stock jumped nearly 30 per cent in less than an hour, closing at $4.59 on the Toronto Stock Exchange.
It was the same story in the United States, with the shares rallying 30.4 per cent in the final hour to close at $3.56 (U.S.).
The price jump happened on heavy volume. More than 696,000 shares of PSG in Canada and three million in the United States changed hands between 3 p.m. and 4 p.m. From the market open at 9:30 a.m. until 3 p.m., just 202,000 shares of the company in Canada and 950,000 shares in the United States were traded, according to Bloomberg data.
Performance Sports, which makes Bauer hockey equipment and Easton baseball gear, has had a difficult year. It has delayed the filing of its financial statements, is under investigation by the U.S. Securities and Exchange Commission and is now the subject of inquiries from securities regulators in Canada, too. The TSX-listed shares have fallen 66 per cent this year.
It's unclear what caused Friday's buying frenzy. It happened shortly before PSG's largest shareholder, a firm controlled by the wealthy Desmarais family of Montreal, issued a statement saying that it's evaluating the company's financial position and may consider proposals that involve a refinancing of PSG's debt or even a sale of the company or some of its assets.
The Desmarais investment firm, Sagard Capital Partners, owns 16.9 per cent of PSG. At 4:30 p.m. on Friday, Sagard announced that it had terminated a shareholder agreement that would have given the firm a seat on the board. Initially, former Sagard president Dan Friedberg sat on the board and after he resigned, the seat was to be occupied by Paul Desmarais III. In the same news release, it said that it "plans to discuss ideas … with potential sources of financing and co-investors" who might play a role in refinancing or restructuring the company.
Sagard, a subsidiary of Power Corp. of Canada, said it might make proposals to Performance Sports "concerning the capitalization or ownership structure … including a sale of [PSG] as a whole or in parts, the structure of [its] board of directors (including board composition) or operations of the issuer."
-- Christina Pellegrini
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Medical Facilities Corp. (DR-T) named James Rolfe as chief development officer, a new role at the company.
Mr. Rolfe was previously managing director of business development at a large healthcare valuation and transaction advisory firm.
CEO Britt Reynolds was also appointed as a director of the company. He started as CEO on May 1.
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West African gold producer Perseus Mining Ltd. (PRU-T, PRU-A) says it has full credit committee approval of a $60-million (U.S.) project debt facility received by Macquarie Bank Limited and BNP Paribas.
In the interim, it said development work at its Sissingué project will be funded from the proceeds of a recent equity offering. The company said the project is on schedule for the production of first gold in the December, 2017 quarter.
It also appointed Chris Woodall as chief operating officer, based in Perth.
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Atalaya Mining plc (AYM-T) says it has most of its funding requirements for its mine expansion after striking a $14-million (U.S.) copper concentrate prepayment agreement with Transamine Trading S.A., an independent and privately owned commodity trading company based in Geneva.
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Bonavista Energy Corp. (BNP-T) is buying properties in its Deep Basin and West Central Alberta core regions in exchange for properties within its non-core region located in northeastern British Columbia.
"There are no cash proceeds involved in the asset exchange," the company said in a release. "The asset exchange is consistent with Bonavista's strategy to concentrate its portfolio in the Deep Basin and West Central core regions where we have identified capital efficient, scalable development opportunities while establishing a low cost operating structure."
The assets include access to approximately 330 sections of mineral rights located adjacent to Bonavista's existing land position in these areas.
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Surge Energy Inc. (SGY-T) has increased its 2016 production exit rate estimate to 13,500 barrels of oil equivalent per day (boepd) from 13,000 boepd.
It also announced preliminary guidance for 2017, with production averaging more than 13,650 boepd, and a 2017 production exit rate of 14,150 boepd.
"In 2017 Surge plans to deliver approximately five percent growth in production per share from low risk development drilling and waterflood activities – funded entirely from existing funds flow at US$50 WTI pricing for crude oil," the company said in a release.
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The Intertain Group Ltd. (IT-T) announced additional non-competition covenants and amendments to the long-term operating and other agreements with Gamesys Ltd., the platform and service provider to its Jackpotjoy, Starspins and Botemania brands.
The amendments include Intertain making a pre-payment to Gamesys of £150 million related to earn-out obligations in connection with the Jackpotjoy and Starspins brands, among others.
Intertain also said it's "actively assessing its debt financing options" as part of its ongoing assessment of the group's capital structure.
The company also announced Jackpotjoy plc, the UK company intended to become the parent company for the Intertain group, plans to to seek admission to trading on the London Stock Exchange.
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Clearwater Seafoods Inc. (CLR-T) says it will invest in $70-million in a "new and innovative vessel" for its Canadian clam fleet to replace a 28-year-old one.
"This investment follows the launch of the Belle Carnell in July, 2015 which successfully allowed Clearwater to increase its catch of Arctic Surf Clams, Cockle Clams and Propeller Clams," the company said in a release.
"The investment is directly tied to Clearwater's strategy of expanding access to supply of high demand, premium, wild and sustainably harvested seafood."
Clearwater said it has invested $169 -million in its fleet over the past five years.
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