Our roundup of Canadian small-caps of between $100-million and $3-billion in market capitalization making news
Home Capital Group Inc. (HCG-T) announced it received an unsolicited, non-binding and conditional takeover offer which its board has decided is not in the best interests of the company or its shareholders.
The mortgage lender says the board has determined the offer undervalues its shares and falls short of reflecting Home Capital’s intrinsic value and its future growth potential.
Home Capital did not release specific deals of the proposal, but said it was an all-cash offer and topped the maximum purchase price of $28.60 per share offered under its substantial issuer bid announced last week.
It also did not identify who made the offer, but says the third party, in conjunction with another group, previously made an unsolicited, non-binding proposal to acquire the company.
Home Capital says the non-binding expression of interest was subject to a number of conditions, including the completion of satisfactory due diligence, negotiation of a definitive agreement and receipt of all required regulatory and shareholder approvals.
It also required that the issuer bid not be completed.
- The Canadian Press
Quipt Home Medical Corp. (QIPT-X) announced a binding commitment letter from CIT Bank, N.A., a division of First-Citizens Bank & Trust Company, to commit to provide 100 per cent of the senior secured credit facilities of up to $80-million.
“The commitment letter from CIT for up to $80-million of senior credit facilities is a major milestone which paves the way for us to accelerate our acquisition approach across all three tiers of our well-defined strategy. As always, we will continue to remain extremely disciplined with our capital allocation strategy maintaining a very healthy balance sheet with a conservative leverage structure,” said Greg Crawford, CEO of Quipt.
Galaxy Digital Holdings Ltd. (GLXY-T) announced that it has exercised its right to terminate its previously announced acquisition agreement with BitGo following BitGo’s failure to deliver audited financial statements for 2021 by July 31 that comply with the requirements of the agreement. No termination fee is payable in connection with the termination, the company stated.
GreenPower Motor Company Inc. (GPV-X) reported revenues of $3.9-milion for its first fiscal quarter ended June 30, which was below expectations of $5.9-million according to S&P Capital IQ. The result compared to revenue of $3-million a year ago.
Its loss was $4.4-million or 19 cents per share, according to documents filed on Sedar.com, compared to a loss of $2.3-million or 11 cents a year ago. The expectation was for a loss of 15 cents.
Mag Silver Corp. (MAG-T) reported a second-quarter net income of US$7.6-million or 8 US cents per share compared to US$3.3-mllion or 3 US cents a year ago. The expectation was for earnings to come in at 5 US cents per share, according to S&P Capital IQ.
Its net loss before other expenses for the period was $11.1-million compared to $4.5-million in the second quarter of 2021.
Its net loss increased by 196 per cent to $25.1-million or 53 cents per share from $8.5-million or 28 cents a year ago.
Chartwell Retirement Residences (CSH-UN-T) announced agreements to transition its ownership of two long-term care homes in B.C. with 264 beds to AgeCare Health Services Inc. and Axium Infrastructure Inc. and its affiliates.
The company said the combined value of the transaction, before closing costs and customary adjustments, is $112-million with net proceeds to Chartwell after property-specific debt, taxes and closing cost is estimated at approximately $56.8-million.
Taiga Building Products Ltd. (TBL-T) reported second-quarter sales of $646.1-million compared to $786.7-million over the same period last year. It said the decrease was largely due to decreased selling prices for commodity products.
Net earnings for the quarter ended June 30 decreased to $20.8-million or 19 cents per share from $58.5-million or 54 cents a year ago over the same period. EBITDA was $33.7-million compared to $84.5-million for the same period last year.
Diversified Royalty Corp. (DIV-T) reported revenue of $11.1-million in the second quarter, which it said was its strongest revenue quarter since adopting its multi-royalty strategy in 2013. The result compared to $9.2-million in the year-ago quarter.
Adjusted revenue of $12.3-million was up 18.6 per cent year over year and compared to expectations of $11.5-million.
Net income was $7.1-million compared to net income of $5.2-million last year. “The increase in net income was primarily due to higher adjusted revenues, and higher fair value gains on financial instruments partially offset by an increase in income tax expenses, interest expenses on credit facilities, and salaries and benefits,” the company stated.
The company said operations will continue during the voting process, “and the union has agreed to provide advance notice to the company to allow for a safe and orderly shutdown of operations in the event the union instructs employees to go on strike.”
CEO Michael Garcia said if the agreement is ratified, it will “help to secure our collective future, provide for sustained profitability even at the bottom of the steel cycle, and allow us to maintain the phenomenal momentum we have generated together since emerging from CCAA.”
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