Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
GMP Capital Inc. (GMP-T) announced it’s selling its capital markets business to Stifel Financial Corp. in an all-cash transaction valued at about $70-million. The agreement follows a “comprehensive strategic review process” by the GMP board.
"Our capital markets business has been the core focus of our company offering great services and excellent execution to clients in select markets under the leadership of Harris Fricker and his talented team of investment professionals. The GMP Board's decision to sell this business reflects our belief that our clients and employees will enjoy substantial benefit from the expanded opportunities and necessary critical mass that a world class player like Stifel brings to the table," said Don Wright, chairman of the board and special committee. "With this sale, the GMP Board intends to deploy the corporation's strong capital position to focus and invest heavily in wealth management where we see significant opportunities to partner with the Richardson family, our top performing investment advisors and management at Richardson GMP to create significant long term value for shareholders."
Toronto-based GMP will hold on to its U.S. marijuana sector in capital markets, and its wealth management business, the Globe reports. Full Globe and Mail story here.
Frontera Energy Corp. (FEC-T) announced that the company will be added to the S&P/TSX Composite Index, effective today. The Company is also being added to the S&P/TSX Composite Dividend, S&P/TSX Composite High Dividend and S&P/TSX Capped Energy Index at the same time.
"Being added to the S&P/TSX Composite Index is a significant milestone in Frontera's progress as a public company. It recognizes the substantial efforts and successes of our employees and the board in continuing to create value for our shareholders," said Gabriel de Alba, chairman of the board of Frontera. "The board and management believe the inclusion of Frontera on the composite Index should increase the company's exposure to a broader range of potential investors and should provide better trading liquidity of the company's stock for shareholders."
Street Capital Group Inc. (SCB-T) says it has an agreement to be acquired by RFA Capital Holdings Inc. in a deal valued at 68 cents per share in cash, representing a total price of about $85-million. The price is a premium of approximately 36 per cent to the closing price of Street Capital shares on June 14, the company stated.
"This transaction creates significant and immediate value for Street Capital shareholders, will meaningfully improve our financial strength during this formative stage as a Schedule I bank, and positions the business for sustainable growth over the long term," said Duncan Hannay, chief executive officer of Street Capital.
Dream Industrial REIT (DIR.UN-T) announced the sale of its properties in Eastern Canada region to KingSett Capital for $271-million before transaction costs, closing adjustments, and debt settlement costs. The sale portfolio including 38 properties, totaling approximately 2.8 million square feet of gross leasable area and includes the 118,000-square-foot property that was classified as assets held for sale as of the first quarter of 2019.
“This sale of the Eastern Canada Portfolio represents a significant milestone for the trust,” said Brian Pauls, CEO of Dream Industrial REIT. “We plan to utilize the net proceeds from the sale to increase scale in our target markets as we continue to transform, as well as enhance the overall quality and performance of the Dream Industrial portfolio.”