Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Redknee Solutions Inc. (RKN-T) says it has entered into a waiver and amendment to its credit agreement with its lenders.
The company said the lenders have waived "certain financial covenant requirements" under its agreement for the 12 months ended Sept. 30, 2016. The amount outstanding was $52.8-million.
"If the company is not able to comply with these conditions, then the amount of loans and borrowing outstanding will become due and payable to the lenders on demand," the company said in a release.
Chemtrade Logistics Income Fund (CHE.UN) is bringing its takeover offer of Canexus Corp. directly to shareholders after getting no engagement from the Canexus Board.
It's offering $1.50 per share. The stock closed at $1.52 on Friday. The shares are up 23 per cent since Chemtrade first stated its interest in buying Canexus in mid September.
"Over the past few weeks Chemtrade has made several attempts to engage directly with the board of directors of Canexus to negotiate a value maximizing transaction. Despite Chemtrade's repeated and good faith efforts, the Canexus Board has refused to constructively engage with Chemtrade about a fully funded all-cash transaction which provides shareholders the opportunity to receive fair value and liquidity for their common shares," Chemtrade said in a release.
"The offer values Canexus at an enterprise value of approximately $884 -million, which implies a multiple of 8.4 times the mid-point of Canexus' 2016 Adjusted Cash Operating Profit guidance range of $100- to $110-million."
Concordia International Corp. (CXRX-Q;CXR-T) says it has exercised an option to defer half of the anticipated £144-million ($243-million Canadian) earn-out obligation due to Cinven and the other sellers of Concordia's International segment, to Feb. 1, 2017.
"Our decision to defer £72 million of the earn-out reflects Cinven's continued support for Concordia and provides the company with greater flexibility to manage its obligations," stated CEO Mark Thompson in a release.
The company also said its review of strategic alternatives "including, but not limited to, various capital markets financing options," is ongoing.
Penn West Petroleum Ltd. (PWT-T;PWE-N) says it has offered $448-million of cash on hand, from asset sales completed this year, to its senior noteholders to prepay amounts owing to them.
Penn West said the total principal amount of the senior notes currently outstanding is approximately $576-million before the prepayment offer.
"Our decision to apply the asset sale proceeds towards our notes reduces the effective interest rate on our debt and advances our goal of continuing to simplify Penn West's debt capital structure," stated chief financial officer David Dyck in a release.
Pivot Technology Solutions (PTG-X) is buying Ottawa-based TeraMach Technologies Inc., a provider of information technology products and services, for an undisclosed price.
"TeraMach is a profitable and growing private company with annual revenues of approximately $100-million and gross margins that are similar to Pivot's," the company said.
It said the deal was all-cash financed from existing borrowing facilities.
"Canada is a strategic market for Pivot and TeraMach is the perfect company for us as we continue to expand in North America," stated Pivot CEO Kevin Shank in a release.
Merus Labs International Inc. (MSL-T;MSLI-Q) says it has reduced its leverage after making the second of its regularly scheduled quarterly principal repayments under its new credit facility.
Merus said it made a payment of $8-million on Sept. 30.
"As a result of making the current debt repayment, the company's financial metrics triggered the lowering of its annual interest rate from 4.5 per cent to 4 per cent," the company said in a release.
Its term debt facility balance currently stands at €100.5 million ($169-million Canadian) after the recent repayment.
Black Diamond Group Ltd. (BDI-T) says it's buying the rental fleet assets of Shelter Modular Inc. for $1.3-million.
The fleet is based in the Vancouver area and includes about 100 space rental units. Concurrent with the acquisition, Black Diamond signed a commitment to purchase $1.4-million of new manufactured assets from Shelter, including 50 new space rentals units to be delivered mostly in 2017.
As a result of this move, Black Diamond is increasing its capital budget to $15-million from $10-million.
"These assets will quickly scale our previously announced Vancouver branch start up," stated CEO Trevor Haynes in a release. "The manufacturing arrangement ensures an additional independent source of supply to support our growth plans. Shelter has had a long-standing manufacturing operation in Southern B.C. and we look forward to the new working relationship."
Just Energy Group Inc. (JE-T;JE-N) says JPMorgan Chase Bank N.A. has joined its credit facility as a lender with a commitment of $15-million.
That boosts its credit facility to $292.5-million, maturing on Sept. 1, 2018.
"We are pleased to announce the addition of JPMorgan to our lending group and look forward to their continued support alongside our other existing banking relationships," stated chief financial officer Pat McCullough in a release. "Maintaining a strong and flexible financial position remains a priority for our company, and we believe this new relationship will assist Just Energy to execute its long-term growth strategy."
Alaris Royalty Corp. (AD-T) says its private company partner, Solowave Designs LP, has sold its children's play division, which represents the majority of Solowave's earnings.
That led to the repurchase of all of Alaris' preferred units in Solowave for total proceeds to Alaris of $44.6-million.
The repurchase, along with distributions previously collected from Solowave, led to a total return of $33.5-million (or 79 per cent) and an internal rate of return of approximately 17 per cent, Alaris said in a release.
Spectral Medical Inc. (EDT-T) said its experimental treatment for sepsis -- a common, oft-deadly complication of infection -- failed a late-stage study, stymieing the company's plans to bring to market the first FDA-approved device for the condition.
Sepsis occurs when the immune system goes into overdrive to fight infection or bacterial toxins, triggering a cascade of physiological changes that can lead to multiple organ failure and even death.
Toronto-based Spectral Medical holds North American rights to a system developed by Japan's Toray Industries Inc., designed to restore blood pressure and correct organ dysfunction by using an antibiotic to detoxify the blood.
Once the patient's blood has been extracted, it is passed through a column to remove a type of toxin, called an endotoxin, which is believed to be a major trigger for sepsis.
The trial did not meet the main goal of absolute reduction in mortality rate at 28 days but did demonstrate beneficial treatment effects, Spectral said on Monday.
The data demonstrates a clear correlation between the amount of endotoxin removal and reduction in mortality, and Spectral will discuss with the U.S. Food and Drug Administration the next steps toward potential approval, it added.
There are no specific FDA-approved medicines for the treatment of sepsis, and there have been several high-profile clinical failures.
Cardtronics plc (CATM-Q) is buying global ATM operator DirectCash Payments Inc. (DCI-T) for $19 per share. DirectCash stock closed at $12.83 on Friday.
The acquisition includes DCPayments' acquisition of 3,500 ATMs in Australia from First Data Corp., completed on Sept. 30.
"The combination of DCPayments and Cardtronics creates a unique platform that is ideally suited to maximize customer value for both organizations," stated DCPayments CEO Jeffrey Smith in a release.
The combined companies would serve approximately 225,000 ATMs in North America, Europe and Asia-Pacific.