Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Paramount Resources Ltd. (POU-T) announced the sale of its Karr 6-18 natural gas facility and related midstream assets for about $330-million plus a $140-million capital commitment to fund and complete the associated expansion of the facility, D2, bringing the total transaction value to $470-million. The buyer is CSV Midstream Solutions Corp.
“CSV Midstream will assume operatorship of the 6-18 Facility at closing and complete the construction of D2, which is currently in-progress and scheduled to be commissioned in the second half of 2020,” the company stated.
Canfor Pulp Products Inc. (CFX-T) announced it will be implementing phased summer curtailments in July and August at its Intercontinental and Northwood NBSK pulp mills in Prince George, B.C. “due to a significant deterioration in market conditions, in combination with fibre-supply constraints and higher fibre costs resulting from recent sawmill curtailments across the B.C. industry.”
The company said the curtailments will reduce Canfor Pulp’s production output by approximately 75,000 tonnes of NBSK pulp and that it intends to resume full production at Intercontinental and Northwood in September.
Tree Island Steel Ltd. (TSL-T) announced it has been advised of the intention of The Futura Corp. and Arbutus Distributors Ltd., entities controlled by certain directors of the company, to make an unsolicited non-binding proposal to buy the company for $2.25 per share in cash. “A binding proposal has not yet been made to the company or its shareholders,” the company stated. The stock closed at $2 on Thursday.
“We are extremely pleased by this transaction, which clearly supports the business case for Pulse’s January 2019 purchase of Seitel Canada Ltd.,” stated CEO Neal Coleman. “Transaction-based sales have become a significant component of our data library licensing business in recent years, and we continue to believe that our acquisition will help grow and potentially smooth Pulse’s annual revenues over time.”
Cascades (CAS-T) announced it has won the auction to acquire certain of the assets of Orchids Paper Products in proceedings before the United States Bankruptcy Court for the District of Delaware. The transaction, which will be completed for a cash consideration of US$207-million, will cover most assets including the Barnwell, South Carolina and Pryor, Oklahoma operations, as well as certain equipment and various of Orchid’s Paper commercial arrangements with Fabrica de Papel San Francisco, S.A. de C.V., based in Mexicali, Mexico.
“The acquisition will allow Cascades to accelerate the modernization of its tissue asset base, reduce sub-contracting and transportation costs, and increase its geographical footprint to better serve its customers,” it stated.