Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Home Capital Group Inc. (HCG-T) issued a release Wednesday night to clarify its relationship with Brookstreet MIC Inc. after it says an investing web site published an erroneous report.
"Brookstreet is one of a number of second mortgage lenders to which Home Trust, in the normal course of its business, refers borrowers who are seeking to arrange a second mortgage," the company said. "Home Trust refers borrowers when they require a loan at a higher loan-to-value than Home Trust will provide based on its underwriting parameters. All referrals are conducted at arm's length, at market terms, and the second mortgage lenders independently underwrite whether to issue a second mortgage to the borrowers."
It said Brookstreet is an independent company whose owners include two adult children of Home Capital founder and director Gerald Soloway, and that it considers Brookstreet to be a related party.
"However, the company does not consider these related party transactions to be material for the purpose of financial disclosure."
Concordia International Corp. (CXRX-Q, CXR-T) announced an offering of up to $350-million of new senior secured notes and said its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) will drop in the 12 months ended Sept. 30.
"The net proceeds of the offering will be used to strengthen the company's liquidity position and augment its product development pipeline beyond the anticipated, and previously disclosed, 60 product launches expected by the fourth quarter of 2018," the company said in a release.
It also said its pro forma adjusted EBITDA for the 12 months ended Sept. 30, 2016 will decrease relative to same measure for the 12 months ended June 30 for two reasons: the change in the exchange rate between United Kingdom pounds sterling and the U.S. dollar and competitive pressures.
It said each of these events have been previously disclosed.
Corsa Coal Corp. (CSO-X) is raising $16-million in a private placement financing.
Corsa said in a release that it has appointed Paradigm Capital Inc., GMP Securities Inc. and Pareto Securities to sell common shares at 10 cents each.
Current insiders of the company are expected to subscribe for up to 70 million common shares.
Net proceeds will be primarily used for mine development, general corporate and working capital purposes, the company said.
Sandvine Corp. (SVC-T) reported third-quarter revenue of $26.1 million down from $27.3 million a year ago. Analysts were expecting revenue of $24.4 million.
Net income of $1.5-million, or a penny per diluted share, was down from $2.9-million and 2 cents per share a year ago, the company said in a release.
Street Capital Group Inc. (SCB-T) says its reviewing the impact of the federal government's new mortgage insurance rules on its current and future business plans.
"The company's current view is that these changes will be most impactful for those lending institutions that solely rely on the availability of mortgage insurance in order to access funding for the mortgages they originate. This is not the case for Street Capital, which has other sources of funding available," it said in a release.
Street Capital said it doesn't expect the changes to the mortgage insurance rules will negatively impact its progress toward becoming a Schedule I bank.
"While the company expects that in the near-term there may be a negative impact on new prime mortgage originations generally in the market, the company believes it is strategically well placed for future growth and profitability given its planned transition to a Schedule I bank."
Alamos Gold Inc. (AGI-T, AGI-N) says it has received final approval of the Environmental Impact Assessment for phase I of its La Yaqui project in Mexico.
"This marks another important milestone in the development of the La Yaqui project," sated CEO John McCluskey. "Combined with its higher grades and recoveries, we expect La Yaqui will be a significant source of low cost production at Mulatos for many years to come."
Construction activities are expected to start later this year with initial production on track for mid-2017, the company said in a release.
Pure Technologies Ltd. (PUR-T) says its has been awarded work valued at up to $14-million from several U.S. water agencies related to the inspection and management of critical water pipelines.
"The company has been chosen to lead this new work based on its experience, expertise and industry-leading technology-based solutions for the management of water pipelines consisting of multiple pipe types and sizes around the world," it said in a release.