Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Husky said on Sunday that it would pay $11 in cash or 0.485 of a Husky share for each MEG share, a premium of 37 per cent over MEG’s closing price on Friday of $8.03 on the Toronto Stock Exchange. It would also assume MEG’s $3.1-billion debt.
MEG, known for its Christina Lake steam-driven oil-sands development south of Fort McMurray, Alta., has been in the midst of a transition after the departure of founder Bill McCaffrey as chief executive in May. His resignation had prompted some speculation of a takeover. Mr. McCaffrey’s successor, Derek Evans, wrote a letter to shareholders in early September laying out his vision for the company. It included plans to reduce its sizable debt, expand markets and boost production to 113,000 barrels a day by 2020, up from 98,000 in July.
MEG’s $8.03 share price represents a gain of about 50 per cent year to date. It has weakened since the summer, however, as the discount on Canadian heavy crude has widened against light U.S. oil grades to levels not seen in five years. The wide difference is due to tight export pipeline capacity and rising industry-wide output.
Husky, part of the global empire of Hong Kong billionaire Li Ka-shing, said it had attempted to persuade MEG’s board of the benefits of a deal, but was rebuffed, prompting it to take its offer directly to shareholders.
- Shawn McCarthy and Jeffrey Jones
Under the terms of the agreement, holders of Pershing common shares will receive 0.715 common shares of Americas Silver for each common share of Pershing by way of a share exchange, the companies stated. Based on the closing price of Americas Silver on the NYSE American on September 28, the deal implies a value of US$1.69 per Pershing common share.
"This represents a 39-per-cent premium to Pershing's closing price on the NASDAQ and a 39-per-cent premium based on the volume weighted average prices of Americas Silver and Pershing for the 10-day period ending on September 28," the company stated.
Existing shareholders of Americas Silver and Pershing will own approximately 64 per cent and 36 per cent, respectively, on an undiluted basis, following the close of the transaction, the companies said.
Orocobre Ltd (ORL-T) appointed Martin Perez de Solay as its new CEO and managing director, following an executive search. He will start after the upcoming annual general meeting and a transition period with the current managing director and CEO, the company stated. He will be based in Argentina.
The Green Organic Dutchman Holdings Ltd. (TGOD-T) says it’s raising about $75-million in a bought-deal offering. It has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. to buy nearly 11 million units at $6.85 each.
Each Unit will consist of one common share and one common share purchase warrant exercisable at $9.
The net proceeds will be used for the company's international expansion initiatives and general corporate purposes.
Tidewater Midstream and Infrastructure Ltd. (TWM-T) says it has agreements with TransAlta Corp. (TA-T) for the construction, operation and tolls payable related to the previously announced pipeline connecting Tidewater’s Brazeau River Complex to TransAlta’s generating units at Sundance and Keephills.
Tidewater also said it has entered into crude oil storage and transportation agreements "with various counterparties, including an investment grade counterparty."
Harvest One Cannabis Inc. (HVT-X) says its wholly-owned subsidiary United Greeneries Ltd. has a supply agreement with Manitoba Liquor and Lotteries to supply cannabis for the adult-use market launch on Oct. 17. “This announcement comes on the heels of United Greeneries' recent deals with the Ontario Cannabis Retail Corporation and the British Columbia Liquor Distribution Board. Additionally, United Greeneries has successfully been approved as a registered supplier with the Saskatchewan Liquor and Gaming Authority further cementing Harvest One’s national retail strategy,” the company stated.
CannTrust Holdings Inc. (TRST-T) has appointed Peter Aceto, the former CEO of Tangerine Bank, as CEO effective immediately. Eric Paul, CannTrust’s co-founder, has stepped down from his role as CEO and has been named chairman of the board and special advisor to CannTrust’s management team, the company stated. Mark Litwin is assuming the role of vice chairman.
Mr. Sprott now owns approximately 19.9 per cent of the company on a partially diluted basis, up from 13.4 per cent on a partially diluted basis, the company stated.
“We are pleased to see the increased level of interest in our company as evidenced by the trading volume over the last few weeks. We are also encouraged by Mr. Sprott’s support, believing in our company and our Fenelon Gold Property,” stated Marz Kord, CEO of Wallbridge. “We continue with our successful exploration and development plans at Fenelon Gold Property in order to expand the resource and move the project ahead into production”.