Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
TransAlta Corp. (TA-T; TAQ-N) announced late Friday that the Alberta Electric System Operator (AESO) granted the extension of the mothballing for Sundance Unit 3 until November 1, 2021, extended from the previous date of April 1, 2020; and for Sundance Unit 5 until November 1, 2021, extended from the previous date of April 1, 2020.
"The extensions were requested by TransAlta based on TransAlta's assessment of market prices and market conditions," the company stated. "TransAlta does have the ability to return either of the units back to full operation by providing three months' notice to the AESO."
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The Supreme Cannabis Company, Inc. (FIRE-T) announced it has signed a letter of intent with Malta Enterprises, the economic development agency of Malta, that would allow the company to produce and process cannabis for medical use within Malta.
“Malta is not only a strategic hub for Europe, it is also home to robust existing pharmaceutical and nutraceutical manufacturing industries with a deep pool of expertise,” said Navdeep Dhaliwal, CEO.
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AgraFlora Organics International Inc. (AGRA-C) announced its management “is currently analyzing the strategic advantages of a potential listing on the Nasdaq, the New York Stock Exchange or the AIM, a division of the London Stock Exchange.”
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One of Australia’s largest miners is buying a majority interest in a B.C. mine from Imperial Metals Corp. (III-T) for US$806-million, providing a cash injection for the struggling Vancouver company that is backed by billionaire executive Murray Edwards.
Melbourne-based Newcrest Mining Corp. struck a deal on the weekend for 70 per cent of Imperial’s Red Chris property, a mine that opened three years ago and last year produced 12,000 ounces of gold.
Imperial’s board has been conducting in a strategic review of the business as it tries to get out of financial trouble. In 2014, a catastrophic tailings dam failure forced Imperial to suspend operations at its Mount Polley copper-gold mine in British Columbia for almost a year. Imperial has also dealt with operating problems at Red Chris since it started production in 2015.
The company has one of the lowest credit ratings given by Moody’s Investors Service, and last week announced it had received a temporary extension from creditors on three of its loans. For shareholders, it has been a painful ride: The shares traded for nearly $17 shortly before the Mount Polley disaster, but closed last week at $1.98 on the Toronto Stock Exchange. Mr. Edwards owns about 41 per cent of Imperial, according to Refinitiv data, and has been a large investor in the company since the 1990s.
- Niall McGee
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Callidus Capital Corp. (CBL-T) announced that Patrick Dalton has resigned from the company from his consulting role and position as interim CEO. The company said is interim CEO duties have been re-assigned to the existing Callidus management team.
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SEMAFO Inc. (SMF-T) is buying the remaining interest in Savary Gold Corp. (SCA-X) not already owned by way of a three-cornered amalgamation. The agreement follows a letter of intent announced Feb. 11.
Under the terms of the combination agreement, Savary shareholders will receive 0.0336 of a SEMAFO common share for each Savary share. The exchange ratio is the same as was announced on February 11, 2019, the company stated. It said all of Savary management and board and significant shareholders, together representing 29.3 per cent of the Savary shares, are supportive of the combination and have entered into support agreements with SEMAFO to vote their Savary Shares in favour of the proposed deal.
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Laurentian Bank of Canada (LB-T) announced that its unionized employees voted 81-per-cent in favour of the final offer made by the Bank to the Local COPE 434 Union during their general meeting held Sunday in Montreal.
"Laurentian Bank is pleased that its unionized employees have accepted this fair offer that will allow employees to access jobs of the future, while ensuring the success of the Bank’s branch network in Quebec," the company stated.
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Ag Growth International Inc. (AFN-T) announced a plan to buy Milltec Machinery Ltd., a manufacturer of rice milling and processing equipment in India, for $109.5-million, “plus the potential for up to an additional $38.4-million based on the achievement of EBITDA targets.”
Ag Growth said the deal will be funded through its revolving credit facility.
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Neo Performance Materials Inc. (NEO-T) announced a mutual agreement to terminate an acquisition agreement with Luxfer Holdings PLC (LXFR-N). Luxfer had proposed in December to acquired Neo for US$612-million in cash and stock.
Neo also reported fourth-quarter revenue of $109.4-million, which was consistent with the same period a year earlier but below expectations of $119.7-million. Net income totaled $4.4-million versus a loss of $1.7-million a year ago. Adjusted net income totaled $7.5-million or 18 cents per share versus $4.9-million or 11 cents a year ago.