Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Guyana Goldfields Inc. (GUY-T) announced that Silvercorp Metals Inc. (SVM-T) will not exercise its right to match the takeover offer received from a foreign-based multinational mining company announced on June 3 for $1.85 per share.
In a separate release, Silvercorp says if Guyana Goldfields terminates their agreement, Silvercorp will receive a termination fee of $9-million.
Cervus Equipment Corp. (CERV-T) announced its board has approved renewed activity its existing Normal Course Issuer Bid, which will be funded by a temporary reduction in the quarterly dividend to 1.5 cents per share from 11 cents per share.
"Cervus has a long history of distributing a portion of free cash flow to investors and since 2017 we have considered both dividends and share buybacks to be a return of capital to shareholders," said Peter Lacey, founder and chairman of the board. "In our view, it would be a significant oversight not to capture the opportunity to buy Cervus shares at a substantial discount to tangible book value, especially in light of future growth aspirations communicated in our five-year strategic plan."
The company said the board "will continue to assess shareholder distributions on a quarterly basis."
BSR Real Estate Investment Trust (HOM.UN-T) announced it has acquired Retreat at Wolf Ranch Apartments, a 303-suite, garden-style residential community in Georgetown, Texas for $51.6-million. The company said the transaction was funded with $26.5-million in mortgage debt, with the REIT’s credit facility used for the balance.
The company generated a net loss of $996,000 or 2 cents per share in the fourth quarter compared to net earnings of $84,000 or nil per share a year ago.
Drone Delivery Canada Corp. (FLT-X) announced that it successfully engineered and tested payload drop functionality for the Sparrow drone, which it says “opens further healthcare, commercial and residential use cases.”
According to the company, "this new functionality allows a package to be loaded at the point of origin, fly to a destination, hover at a lowered altitude, drop a payload without landing, and return to the point of origin."
It said the Sparrow has a total flight range of up to 30 kilometres with a maximum payload capacity of approximately 4.3 kilograms (10 pounds) and operates with its FLYTE software system.
"The Caribbean and Latin American markets are very well suited to Canaccord Genuity's core mid-market capabilities, and this development represents an exciting opportunity for our firm," said Patrick Burke, [resident of Canaccord Genuity Capital Markets in Canada. "Gene brings a rich history of entrepreneurial thinking, capital markets innovation and collaboration to his role, making him the ideal local partner to support businesses in this important geography, while leveraging the extensive resources and expertise available across Canaccord Genuity's broader global platform".
The Montreal-based tour company that owns Air Transat says it will begin a gradual resumption of operations with plans for 23 international routes over the summer as well as some domestic operations.
Transat, which is in the process of being acquired by Air Canada, has suspended all of its flights since April 1 due to the pandemic and resulting border closures.
The announcement of the plan to resume flying came as Transat reported a loss of $179.5 million or $4.76 per diluted share in the quarter ended April 30 compared with a loss of $939,000 or two cents per diluted share a year ago.
Revenue in what was the company’s second quarter fell to $571.3 million compared with $897.4 million in the same quarter last year.
On an adjusted basis, Transat says it lost $38.8 million or $1.03 per share for the quarter compared with an adjusted loss of $6.4 million or 17 cents per share in the same quarter a year ago.
-The Canadian Press
Calian Group Ltd. (CGY-T) announced that it has been awarded a contract by SNC-Lavalin PAE Joint Venture to support the delivery of up to ten 100-bed Mobile Respiratory Care Units (MRCUs) for the Government of Canada’s pandemic response efforts.
"The partnership is deploying turnkey MRCUs intended for various locations in Canada. The easily storable, accessible and transportable MRCUs are self-sufficient units that will provide targeted care for persons with acute respiratory disease and distress," the company stated.
It said the contract value for the project’s first phase is expected to fall within the range of $22-million to $26-million, depending on demand. Project delivery on the first phase is anticipated to occur during Calian’s third and fourth quarters.
HEXO Corp. (HEXO-T) reported revenue of $30.9-million in its third-quarter ended April 30, up from $15.9-million a year earlier. Its net loss was $19.5-million versus a loss of $7.8-million a year ago.
Novo Resources Corp. (NVO-X) announced plans to acquire the Mt. Elsie Project in Australia. The company said it will issue 324,506 common shares and pay $100,000 (Australian) in cash to the vendors of the Mt. Elsie Project.
“The acquisition further strengthens one of Novo’s goals, being consolidation of highly prospective gold projects in the East Pilbara region near the company’s Beatons Creek project,” stated Quinton Hennigh, president and chairman of Novo Resources.