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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.
Sleep Country Canada Holdings Inc. (ZZZ-T) announced an $185 million secondary offering late Monday. The Toronto-based mattress seller said it has an agreement with Birch Hill Feather LP, Birch Hill Feather (US) Holdings LP and Panzer Ltd and a syndicate of underwriters co-led by TD Securities Inc. and BMO Capital Markets for the offering. It said the underwriters will purchase from the selling shareholders 10 million common shares at a price of $18.50 per share on a bought deal basis. The stock closed at $19.05 on Monday.
The deal also includes an over-allotment option to purchase up to an additional 1.5 million shares at the issue price for up to 30 days after closing, which is expected on Dec. 17. After closing, the selling shareholders will own 18.9 per cent of the company ownership interest in the company, Sleep Country said in a release.
Birch Hill owned about 38.5 per cent of Sleep Country shares as of Aug. 31, or about 14 million shares outstanding, according to S&P Capital IQ.
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Algoma Central Corp. (ALC-T) said it has contracts to build two bulk freighters to join its Great Lakes – St. Lawrence Waterway dry-bulk fleet.
Algoma said the new Equinox Class ships will be built by Jiangsu Yangzijiang Shipbuilding Co. Ltd. They will feature a standard rear boom and will span about 225 metres long and a beam of nearly 24 metres, designed to carry 29,300 tonnes.
"Our search for a shipyard in China to replace the now-bankrupt Nantong Mingde Heavy Industries ("Mingde") led us to Yangzijiang," said Algoma chief executive Ken Bloch. "We have been pleased with the professionalism and enthusiasm the Yard has shown for our project and the quality that they have shown on work done for other ship owners."
The vessels are scheduled for delivery in the first half of 2018, the company said, and will bring its total Equinox Class vessels under construction to seven. Algoma said it expects to invest approximately $450 million in this phase of its fleet renewal program. The company said it's also reviewing its fleet plan and considering retiring certain older vessels.
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Vancouver-based Endeavour Mining Corp. (EDV-T) said it has formally requested approval from regulators to remove its listing from the Australian Securities Exchange (ASX). If approved, it expects the change to happen in January. Endeavour Mining said it will continue to be listed on the Toronto Stock Exchange.
The announcement comes after the West Africa focused mining company implemented a 10-for-one consolidation of its shares, effective Nov. 27. The share consolidation is expected to reduce the number of outstanding shares to approximately 59 million.
The consolidation was approved at a special shareholder meeting on Nov. 5, following approval of a friendly deal for La Mancha Holding SARL to acquire 30 per cent of Endeavour for a majority stake in La Mancha's Ity gold mine in western Africa. La Mancha is a private investment company headed by its chairman Naguib Sawiris -- an Egyptian businessman who provided some of the funding for the launch of Wind Mobile as a competitor to Canada's largest wireless carriers.
Endeavour says the partnership puts it in line to produce 580,000 ounces annually from five operations in western Africa, including in Cote d'Ivoire where the Ity open pit mine is located, 480 kilometres northwest of the capital Abidjan.
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Canexus Corp. (CUS-T) says that Institutional Shareholder Services Inc. and Glass Lewis & Co. LLC have both recommended that its shareholders vote in favour of Superior Plus Corp.'s acquisition of the chemicals and handling company. Diversified chemicals company Superior Plus is offering to buy Canexus for $324.1 million, as part of its plans to expand its specialty chemicals portfolio. The voting deadline for shareholders is Dec. 9.
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Performance Sports Group Ltd. (PSG-N, PSG-T) appointed Mark Vendetti as chief financial officer, replacing Amir Rosenthal, who was named president of the company's PSG Brands division in May.
Mr. Vendetti is currently CFO of women's speciality retailer Francesca's Holdings Corporation (FRAN-N) and previously worked as vice president of finance at Abercrombie & Fitch from 2009-2013 and senior vice president for XM Satellite Radio Inc. from 2005-2008.
The Toronto-based sports equipment and clothing manufacturer said Mr. Vendetti starts Dec. 14.
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Denison Mines Corp. (DML-T, DNN-N) says it has received $1.25 million (U.S.) in initial payments from Uranium Industry of the Czech Republic, and the closing of the sale of its interest in the Gurvan Saihan joint venture (GSJV) as part of an amended and restated share purchase agreement.
The Toronto-based uranium miner said the deal sees it receive the $1.25 million on closing and rights to receive additional proceeds from the sale of up to $12 million, for a total of $13.25 million.
It said the agreement replaces the share purchase agreement entered into in July, which did not close as expected.
The previous agreement has a small payment on closing of $250,000 and a deferred payment of $19.75 million, made only in the event that all the mining licences for each of the Hairpin, Haraat, Gurvan Saihan and Ulzit projects were granted to the joint venture on or before Nov. 30.
"Completing the sale of Denison's GSJV interests to Uranium Industry represents a significant milestone for the Company - achieving its objective of selling non-core international assets as a form of non-dilutive financing to fund our core activities in the Athabasca Basin," stated Denison chief executive David Cates.
With a file from the Canadian Press