Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Amazon uses Cargojet’s overnight air network and charter aircraft services to move packages between facilities and to other carrier locations.
Under the agreement, Cargojet will issue warrants to Amazon for variable voting shares that will vest based on commercial milestones related to Amazon’s business with Cargojet.
The first tranche will allow Amazon to buy up to 9.9 per cent of Cargojet’s variable voting shares at an exercise price of $91.78 per share. They will vest over a period of six and a half years, with vesting tied to the delivery by Amazon of up to $400 million in business.
Amazon will also receive additional warrants for up to an additional five per cent of Cargojet’s shares with vesting tied to an additional $200 million in business after the first tranche of warrants is fully vested. The vesting period for the second tranche will run for an additional year.
- The Canadian Press
Westport Fuel Systems Inc. (WPRT-T, WPRT-Q) announced the appointment of Richard Orazietti as is chief financial officer, effective Sept. 3. Prior to joining Westport Fuel Systems, he served as senior vice president, treasurer of Goldcorp Inc.,
Holloway Lodging Corp. (HLC-T) announced that it has sold its Travelodge hotel and Airlane Hotel & Conference Centre in Thunder Bay, Ont. for $15-million representing a cap rate of approximately 10.3 per cent and a price per room of approximately $60,500.
Prior to the revaluation of Holloway’s hotels in the first quarter of 2019, the value of these properties on Holloway’s balance sheet was approximately $11.6-million, the company stated.
AutoCanada Inc. (ACQ-T) announced that it has completed a sale-leaseback transaction for two properties on which three of its dealerships are located with Capital Automotive Real Estate Services Inc. AutoCanada said it will lease the properties from Capital Automotive under long-term triple net leases. “The transaction provides for proceeds of approximately $20-million which will be used to repay the company’s credit facility,” it stated. It also said Capital Automotive has agreed to fund approximately $1.8-million for capital construction requirements for one of the dealerships.
Hasbro Inc. (HAS-Q) is purchasing Toronto-based Entertainment One Ltd. (ETO-L) in a US$4-billion all-cash deal that brings together the maker of Transformers toys and the Monopoly game with the producer of children’s shows, Peppa Pig and Clifford the Big Red Dog.
The Pawtucket, R.I.-toymaker said the acquisition of the Canadian music, film and television producer will bring its brands to “to all screens globally” and enhance its infant and preschool products, a key growth segment for the company. The deal puts eOne’s portfolio, including shows such as Peppa Pig and PJ Masks, under the same roof as the toy and entertainment franchises My Little Pony, Transformers, Play-Doh, Nerf and Power Rangers.
Shareholders of eOne, which trades on the London stock exchange, will receive £5.60 per common share, a 31-per-cent premium of its 30-day average price. Its shares closed at £4.42 on Thursday. Hasbro is funding the acquisition through debt financing and US$1-billion to US$1.25-billion in cash from equity financing.
“The acquisition of eOne adds beloved story-led global family brands that deliver strong operating returns to Hasbro’s portfolio and provides a pipeline of new brand creation driven by family-oriented storytelling, which will now include Hasbro’s [intellectual property],” said Hasbro chairman and chief executive officer Brian Goldner in a release.
-Stefanie Marotta and Megan Devlin