Concordia International Corp.Getty Images/iStockphoto
Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Concordia International Corp. (CXRX-T) says it has hired financial advisory Perella Weinberg Partners LP to help the company "explore and evaluate potential transactional alternatives, including initiatives to optimize its capital structure."
"We have made significant progress on our long-term growth strategy and we are looking forward to working with Perella Weinberg Partners to support the company in finalizing and executing on that strategy," said CEO Allan Oberman in a release.
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Sears Canada Inc.(SCC-T) is preparing to seek court protection from creditors in the coming weeks, according to Bloomberg, citing people familiar with the matter.
The court filing will likely lead to a liquidation, with the business sold off in pieces, said one of the people, who asked not to be identified because the deliberations are private. The company's most valuable assets are real estate, but many of its locations are in lower-end shopping centers. That makes it difficult to sell them to a single buyer, the person said.
Sears Canada said recently that it is looking at its strategic alternatives as its struggles to meet its financial obligations, considering a range of options from a sale to a revamping. It has hired BMO Nesbitt Burns Inc. as its financial adviser and Osler for legal advice.
"The company continues to face a very challenging environment with recurring operating losses and negative cash flows from operating activities in the last five fiscal years, with net losses beginning in 2014," it said.
-Bloomberg and Globe and Mail
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MTY Food Group Inc. (MTY-T) is planning to buy Dagwoods Sandwichs and Salads, which has 23 restaurants in Ontario and Quebec, for about $3-million.
The transaction is expected to close within 90 days, but is still "subject to multiple conditions," the company said.
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Exchange Income Corp. (EIF-T) issued a release after markets closed on Tuesday, at the request of regulators, saying it's "not aware of any material undisclosed information" related to the company that would account for the drop in its share price and the higher trading volume.
The stock fell 5 per cent to $29.12 on Tuesday, after hitting an intraday low of $28.70. The stock has traded between $28.63 and $45.28 over the past 52 weeks.
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Summit Industrial Income REIT (SMU.UN-T) says it's raising $60-million in a bought-deal financing.
It has an agreement with a syndicate of underwriters co-led by BMO Capital Markets and CIBC Capital Markets to sell 8.5 million units for $7.07 each.
The REIT said it intends to use the net proceeds from the offering to debt and to fund potential future acquisitions.
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North American Palladium Ltd. (PDL-T) says it has signed an option agreement with Impala Platinum Holdings Limited and Transition Metals Corp that provides the company with the exclusive right to acquire a 75-per-cent ownership position in the Sunday Lake Project near Thunder Bay, Ont."
"The Sunday Lake property rounds out our portfolio of early-stage to advanced exploration opportunities within our strategic exploration area of interest extending over a radius of 50 km from our Lac des Iles mill," said CEO Jim Gallagher in a release.
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Hardwoods Distribution Inc. (HWD-T) says the U.S. Department of Commerce has issued its preliminary determination regarding antidumping (AD) duties against hardwood plywood manufactured in China and imported into the U.S.
It said the department announced it had completed the preliminary stage of its investigation, imposing a preliminary duty rate of 57.36 per cent against most Chinese mill producers.
"As a result of this announcement, once the preliminary AD duty takes effect, the combined preliminary CVD (countervailing duties) /AD duty rate on hardwood plywood imported from China into the United States will be 67.25 per cent," the company stated.
It said the AD duty will come into force in the next few days.
The company estimates about 11 per cent of its total sales is product imported from China that would be subject to the trade case.
"The imposition of preliminary CVD/AD duties of 67.25 per cent will make Chinese hardwood plywood a less competitive option, but will allow us to bring other sourcing solutions to our customers," said Rob Brown, CEO of Hardwoods.
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Home Capital Group Inc. (HCG-T) updated its financial position as of June 19.
It said aggregate available liquidity and credit capacity stood at approximately $1.14-billion, compared to $1.10-billion the day before and $1.10-bilion on June 6.
Its Home Trust High-Interest Savings Account deposit balances stood at approximately $112.3-million versus $98.5-million the day before and $106.3-million on June 6.
Total GIC deposits stood at approximately $12.01-billion compared to $12.03-billion on June 16 and $12.13-billion on June 6.
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Cardiome Pharma Corp. (CRME-Q; COM-T) says its affiliate has signed an exclusive license and distribution agreement with Tzamal Medical Ltd. that will advance its skin treatment toward commercialization in Israel.
"As part of the agreement, Tzamal will be responsible for obtaining regulatory and pricing approvals for XYDALBA from Israel's Ministry of Health," said Cardiome.
The company said it will receive an upfront payment, as well as additional payments, based upon commercial achievements and sales of the product.