Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
It said the underwriters have exercised their option to purchase an additional 2.2 million special warrants at an issue price of $2.25 each for additional gross proceeds of about $5-million.
Cornerstone Capital Resources Inc. (CGP-X) announced that it intends to formally requisition a general meeting of shareholders of SolGold plc (SOLG-T) to be held on or after Oct. 27 to replace the entire SolGold board.
At the meeting, Cornerstone said intends to propose that all members of the current SolGold board be replaced with five new nominees. “Details on the proposed nominees will be provided in due course,” it stated.
A&W Revenue Royalties Income Fund (AW-T) and A&W Food Services of Canada Inc. (A&W Food Services) reported a 31.6-per-cent drop in same-store sales for its second quarter ended June 14 compared to the second quarter of 2019.
"Actions required in response to COVID-19 have adversely impacted A&W restaurant operations across Canada, including the temporary closure of a large number of restaurants," the company stated.
At its peak, since March 1, 230 restaurants (out of 971 restaurants in the royalty pool) were temporarily closed, it said. At the end of the second quarter, 109 A&W restaurants in the pool remained temporarily closed.
Royalty income for the second quarter was $7.6-million based on gross sales of $253.2-million compared to royalty income of $10.6-million and gross sales of $351.8-million a year ago.
The fund’s net income for the second quarter of 2020 was $4.2-million compared to $7.6-million for the second quarter of 2019.
Cardinal Resources Limited (CDV-T) announced on Wednesday that it has received a revised and improved proposal for an "off-market takeover offer" from Shandong Gold Mining (HongKong) Co., Ltd. The company said Shandong Gold is offering to acquire all of the shares in Cardinal it doesn't already own for 70 cents (Australian dollars) in cash per share.
The Shandong Gold offer is being considered in detail by the board, together with the special committee and its financial and legal advisers, the company stated, adding that the offer is subject to a number of conditions, including regulatory approvals in Australia and China.
Cardinal advised shareholders to take no action, noting the competing takeover offer of 66 cents (Australian) in cash per share from Nord Gold SE announced on July 15.
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