Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Obsidian Energy Ltd. (OBE-T; OBE-N) announced an additional $50-million of development capital for its Cardium drilling in Willesden Green. “The development capital increase includes 13 wells in the eastern part of Willesden Green, both inside the unit and along the halo flank of the area,” the company stated in a release.
Frontera Energy Corp. (FEC-T) says it was notified by Petroperu S.A. of a force majeure event affecting a portion of the NorPeruano pipeline following the identification of oil traces in the Pastaza River in Peru. Force majeure will begin on June 4, the company said, adding that it’s “uncertain of when full operation of the pipeline will resume. “Should a portion of the pipeline be inoperative, it will result in Block 192 being declared in force majeure,” the company stated. “If Block 192 is declared in force majeure the anticipated impact on net production would be approximately 8,600 bbl/d.” It also said it would provide a US$30.5- million loan to Sociedad Portuaria Puerto Bahia S.A., to satisfy a funding commitment.
Separately, the company said it starting a cash tender offer and consent solicitation for any and all of its outstanding 10-per-cent senior secured notes due 2021. In another release, Frontera Energy said it plans to begin an offering of up to US$500 million principal amount of unsecured senior notes due 2023. “The proceeds from the offering will be used to (i) repurchase, at a premium, our US$250 million 10-per-cent senior secured notes due 2021 pursuant to a tender offer, redemption and/or satisfaction and discharge, and (ii) for general corporate purposes.”
Organigram Holdings Inc. (OGI-X) says it will make a “significant equity investment” in Eviana Health Corp. (EHC-CN). The term sheet “contemplates” Organigram entering into an offtake agreement with Eviana for up to 50 per cent of Eviana’s cannabidiol production for five years, subject to adjustment based on Organigram’s equity interest in Eviana.
“This agreement is a key facet of our ongoing international expansion efforts,” Greg Engel, CEO, Organigram stated in a release. “Our investment and concurrent offtake agreement with Eviana will provide Organigram with a source of low-cost, high-quality CBD for the burgeoning medical market within Europe.”
Organigram will invest $10-million in cash for about 8.7 million common shares of Eviana and common share purchase warrants. “Post-closing, it is currently expected that Organigram will own approximately 26 per cent of Eviana’s outstanding shares on a non-diluted basis, and 40 per cent on a fully diluted basis,” the company stated.
Goodfood Market Corp. (FOOD-T) says it has reached 76,000 active subscribers as of May 31, which it says is a 25-per-cent increase over February 28 and a 230-per-cent increase over May 31, 2017.
“Over the last quarter, we achieved record penetration rates in Quebec and Ontario. Our new 20-minute meal offering increased the number of available recipes per week across Canada,” said CEO Jonathan Ferrari in a release.
Calian Group Ltd. (CGY-T) says it has acquired Ottawa-based Secure Technologies International, a Canadian IT and cybersecurity firm “that will strategically expand and strengthen Calian’s cybersecurity solutions.”
“With annual revenues of approximately $6-million to $8-million, we expect this acquisition to be EBITDA (earnings before interest, taxes, depreciation and amortization) accretive from day one,” stated Jacqueline Gauthier, chief financial officer of Calian.
The price wasn’t disclosed in the release.
Questerre Energy Corp. (QEC-T) says it has a letter of intent with a senior exploration and production company to settle outstanding litigation and acquire all their assets in the St. Lawrence Lowlands, Que.
“On closing, we will gain operatorship of our acreage in the Lowlands,” Michael Binnion, CEO of Questerre said in a release. “We will be in a much better position to communicate directly with municipalities and address local concerns and acceptability.”
Pengrowth Energy Corp. (PGF-T) says it has received a delisting notification from the New York Stock Exchange. “Given that the share price on the NYSE has not recovered sufficiently to regain compliance, the board of directors of Pengrowth decided that it was not in the long-term best interest of the company or its shareholders to effect a reverse stock-split of the company’s common stock, in order to preserve the listing of its common stock on the NYSE,” it stated in a release. Pengrowth’s shares will continue to trade in Canada on the Toronto Stock Exchange.