Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Interfor Corp. (IFP-T) announced that it has closed an early renewal and expansion of its revolving credit facility with a syndicate of major Canadian and U.S. banks co-led by RBC Capital Markets, TD Securities and Wells Fargo.
The forestry company said the commitment amount under the facility has been increased by $150-million to a total of $500-million, and the term of the facility has been extended from March 2024 to December 2026. The security, covenants and pricing grid remain unchanged.
The company said the renewal includes the increased ability to secure additional long-term debt financing which will improve its ongoing financial flexibility.
**
Exco Technologies Limited (XTC-T) announced an agreement to acquire the extrusion dies business of Halex Holdings GmbH in a deal with an enterprise value of €40-million ($58-million Canadian). It said the deal will be funded with a combination of cash on hand and available bank lines.
Halex will add almost €40-million in annual sales and is expected to be immediately accretive to Exco’s earnings per share, the company stated.
“The acquisition of Halex is a unique opportunity to add a strategic asset that will accelerate Exco’s growth and sustainability objectives”, said Darren Kirk, CEO of Exco.
**
Frontera Energy Corp. (FEC-T) announced an agreement to acquire Petroleos Sud Americanos S.A. with operations in Colombia for US$9-million plus the assumption of approximately US$18-million in debt.
“Frontera’s acquisition of PetroSud supports the company’s strategy to increase gas production, lowers carbon emissions and includes strategically located, high quality gas facilities adjacent to an emerging core area which may enhance our ability to commercialize recent gas discoveries in VIM-1 in a very competitive market,” stated CEO Orlando Cabrales.
**
Glass House Brands Inc. (GLAS.A.U-NE) announced an agreement to acquire Plus Products Inc., a cannabis edibles company in California for US$25.6-million through a combination of unsecured convertible debt and equity, plus additional performance-based consideration.
“Glass House is working to create the largest cannabis brand-building platform in California,” the company stated.
**
Gold Royalty Corp. (GROY-A) announced that it plans to acquire Elemental Royalties Corp. (ELE-X) in a deal valued at $130-million. The offer – consisting of 0.27 common shares of Gold Royalty in exchange for each Elemental share – values Elemental at $1.78 per share and represents a premium of 37 per cent to its shares on Friday.
“We believe the proposed transaction represents a compelling opportunity for both companies,” stated David Garofalo, chairman and CEO of Gold Royalty. “With 200 royalties, covering all stages of development and production, a strong balance sheet, enhanced market visibility and critical mass, the combined company will be well-positioned for continued growth in today’s increasingly competitive royalty landscape.”
The company said it first submitted a proposal to buy Elemental in October and then last week and “has attempted on several occasions to engage in discussions with Elemental and its board of directors” and is now taking the offer directly to Elemental shareholders.
**
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.