Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Westshore Terminals Investment Corp. (WTE-T) said its coal-loading revenue increased by 3.4 per cent to $89.8-million in the first quarter ended March 31, compared to $86.9-million for the same period in 2019.
According to documents filed on Sedar.com, the company said its profit in the quarter increased to $29.1-million or 44 cent per share versus $27.2-million or 41 cents in 2019, “as a result of the higher revenues, partially offset by higher unrealized losses on [currency] hedging contracts and higher income taxes.”
**
Canopy Rivers Inc. (RIV-T) announced a $2-million investment in Dynaleo Inc., an Edmonton-based company focused on white-label manufacturing edible cannabis gummies for the Canadian market.
"Through this investment, in what the company anticipates may become a leading industrial scale Canadian gummies manufacturer, Canopy Rivers believes it is capitalizing on a significant opportunity in what is currently an underserved and underdeveloped segment of the cannabis market," the company stated. "Once Dynaleo receives the required licencing from Health Canada, it expects to begin operating its 27,000 sq. ft. purpose-built facility with the goal of producing enough gummies to take a sizable bite out of the projected edibles market."
Canopy Rivers said its investment is part of a larger $7-million round. Canopy Rivers' investment in Dynaleo is structured as a $2 million-unsecured convertible debenture with additional warrant coverage. The debenture is convertible at the company's option into common shares of Dynaleo. Upon conversion of the debenture and exercise of the warrants, and assuming no further changes in Dynaleo's capitalization table, Canopy Rivers said its ownership interest will be 12.2 per cent.
**
The uncertainty caused by COVID-19 has pushed retailer Reitmans Canada Ltd. (RET.A-T) to the brink, with the company warning on Friday that unless it is able to secure financing to meet its financial obligations, the business could fail.
“The company’s ability to continue as a going concern is dependent on its ability to resume normal operations, generate future revenues and profitable operations, and obtain financing,” Reitmans said in a statement on Friday evening, adding it is “also exploring various alternatives.”
Reitmans is “actively seeking additional financing” and may be unable to continue if it “is unable to obtain such financing in the limited time period required,” the statement said.
The Montreal-based company owns store banners including Reitmans, RW&Co., Penningtons and Addition Elle. Like many apparel retailers during the COVID-19 pandemic, Reitmans is considered a non-essential business. It was required to close all of its 582 stores across Canada in mid-March.
Even before the outbreak of the coronavirus that causes COVID-19, the company had been cutting costs and its financial performance had been lagging expectations, largely because of declines at its plus-size banners, it said in the release.
-Susan Krashinsky Robertson
**
Marathon Gold Corp. (MOZ-T) announced a $26-million bought-deal financing. It has entered into an agreement with Canaccord Genuity Corp., Sprott Capital Partners and RBC Capital Markets to act as co-lead underwriters, on behalf of a syndicate of underwriters to buy 17,375,000 units at a price of $1.50 each.
Each unit will be comprised of one common share of the company and one half of one common share purchase warrant of the company. Each warrant will entitle the holder to acquire one common share of the company at a price of $1.90 per common share at any time on or before that date which is 12 months after the closing. The stock closed at $1.68 on Friday.
The company said it intends to use the net proceeds to continue the permitting, development and exploration of the Valentine Gold Project, as well as for working capital and general corporate purposes.
**
Mediagrif Interactive Technologies Inc. (MDF-T) announced a $10-million bought-deal financing. It has an agreement with a syndicate led by Echelon Wealth Partners Inc. to purchase 1,818,200 shares at $5.50 each. The stock closed at $6 on Friday.
The Company intends to use the net proceeds for working capital and general corporate purposes.
**
NFI Group Inc. (NFI-T) announced that it and its subsidiary, NFI International Limited, have entered into a new £50 million unsecured, revolving credit facility to support Alexander Dennis Limited’s United Kingdom operations. ADL is a subsidiary of NFI International Limited.
"The UK Facility is primarily a strategic borrowing initiative that management expects could lower interest expenses and withholding tax exposure as it allows the company to better manage international transactions and borrowings," the company stated. It said the The UK facility can be used for ADL's general corporate purposes and in addition to potential cost savings, also provides further liquidity for NFI.
It said the terms and covenants of the UK facility are similar to the company's existing credit facilities, with some specific modifications for local UK laws and regulations. The facility has a two-year term with options to extend.
“This new facility is another strategic initiative that will help NFI better manage international currency, tax and transaction risks,” said Pipasu Soni, chief financial officer of NFI Group.
**
Liberty Gold Corp. (LGD-T) announced that it has signed an amendment to the definitive purchase option agreement for the sale of its 79.9-per-cent interest in the Kinsley Mountain Gold project in northwest Nevada to Barrian Mining Corp. (BARI-X).
Liberty Gold says it will receive for its interest Kinsley US$6.25-million in cash and share value plus a 9.9-per-cent interest in Barrian post-consolidation.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.