Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
“This partnership with Freddie Mac will allow Triad to scale its real property lending solutions to help meet the nation’s affordable housing needs,” added Steven Hudson, CEO of ECN Capital.
Cineplex Inc. (CGX-T) announced that the process to obtain the approvals under the Investment Canada Act for the takeover by Cineworld Group plc (CINE-L) is ongoing and the period for review has been extended to June 15. It’s one of a handful of conditions yet to be satisfied, the company stated.
"There can be no assurance that the ICA approval or the other conditions to closing the transaction will be satisfied or waived by the outside date, in which case the transaction would not be completed," it stated.
Richards Packaging Income Fund (RPI.UN-T) announced the acquisition of shares of Clarion Medical Technologies, a provider of medical, aesthetic, vision care and surgical equipment and consumables for $64.4-million.
It said the deal was financed by a $35-million increase to the term credit, a $2.9-million draw down on the revolving credit, $16-million of cash on hand and a $10.5-million holdback from the vendors.
“This purchase price is subject to additional consideration contingent on Clarion’s future earnings,” the company stated. “Given the current economic environment, it is unclear whether the acquisition will be accretive to earnings in 2020.”
Hexo Corp (HEXO-T) announced that it has received its Health Canada licence amendment for the sale of dried and fresh cannabis, cannabis extracts, cannabis topicals and edible cannabis products for its cannabis manufacturing and processing facility in Belleville, Ont. “The updated licensing also encompasses the expansion of the licensed area to include the beverage production area dedicated to the Truss/Hexo beverage division,” the company stated.
“Receiving the sales license for our Belleville facility is extremely positive news for Hexo and Truss, our joint-venture with Molson Coors Canada,” stated CEO Sebastien St-Louis. “This license allows us to increase our processing capability significantly, achieve greater economies of scale, and continue to roll out more innovative 2.0 products across all of our brands Powered by Hexo, including hash, vapes, cannabis beverages, and other edible cannabis products.”
ATS Automation Tooling Systems Inc. (ATA-T) announced that Maria Perrella has resigned as chief financial officer, effective June 26, “to pursue another business opportunity with a privately held organization.” Ryan McLeod, the company’s vice-president, corporate controller, will assume the role of interim CFO.
AGF Management Limited (AGF.B-T) announced a revised transaction structure for the proposed merger between Tilney and Smith & Williamson including a “material new equity investment from funds advised by Warburg Pincus LLC, and a new optimized capital structure for the combined group which has resulted in a lower level of debt.”
“We are pleased with the revised structure of the proposed merger, which allows us to realize the value of our long-term investment in Smith & Williamson. The extraordinary circumstances created by the COVID-19 pandemic and the resulting economic and valuation impacts are addressed by the revised terms and we believe the structure will meet the points raised by the regulators,” said Kevin McCreadie, CEO of AGF.
AGF estimates that it will now receive total cash of approximately $300.1-million, excluding tax and one-time expenses and subject to closing adjustments. Total cash includes dividends and distributions of up $47.3-million. On closing, AGF said it's expected to receive cash proceeds of about $252.8-million, compared to an estimated book value at closing of $149.4-million.
In the revised transaction structure, AGF sais that it will no longer retain any equity consideration in the merged group.
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