Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Air Canada (AC-T) and Transat A.T. Inc. (TRZ-T) announced the conclusion of a definitive arrangement agreement that sees Air Canada’s buy Transat for $13 per share. The value of the all-cash transaction is approximately $520-million, the companies stated in a release.
Transat’s share price jumped past $14 on Wednesday, the day Air Canada’s exclusive talks to buy the airline and travel operator expired. The two companies have been in negotiations for 30 days for a takeover that would merge Canada’s largest and third-largest airlines at $13 a share, or $520-million.
Transat shares closed at $14.19 Wednesday as investors signaled their belief that Air Canada – or another buyer – will pay more than that.
Montreal real estate developer Groupe Mach has proposed buying Transat for $14 a share, and on Tuesday positioned itself as a more credible bidder by dropping a condition that it receive $120-million in financing from the province of Quebec.
Transat announced separately that it will need to restate its consolidated financial statements and the management's discussion and analysis for the year ended October 31, 2018, as well as the first quarter ended January 31, 2019 and the second quarter ended April 30, 2019.
“Management has concluded that a restatement of its consolidated financial statements filed for the above-mentioned periods is necessary regarding the carrying amount of the non-controlling interest in the Trafictours Canada Inc. subsidiary,” the company stated.
-with files from Eric Atkins
Electra America first approached Pure Multi-Family on December 12, 2017, the REIT stated, "with a conditional proposal to acquire all of the outstanding Class A units. Electra's proposal led to Pure Multi-Family undertaking a strategic review process, including a formal sales process that concluded without a transaction.
"Prior to receiving ALEA's unsolicited conditional proposal on June 18, 2019, referred to in today's public announcement by ALEA, Pure Multi-Family entered into a letter of intent with an arm's length third party, pursuant to which Pure Multi-Family agreed to engage in exclusive negotiations during an exclusivity period with respect to a potential transaction involving Pure Multi-Family," the REIT stated. "Although the letter of intent permits either party to terminate discussions at any time, Pure Multi-Family is precluded from, among other things, soliciting, facilitating or knowingly encouraging any inquiries or proposals for a competing transaction, or entering into any discussions with any person with respect to any such inquiry or proposal during the exclusivity period."
Inovalis Real Estate Investment Trust (INO.UN-T) announced that Khalil Hankach has been appointed the new interim chief financial officer of the REIT effective immediately. Mr. Hankach remains as the chief investment officer of the REIT, the company stated, and previously served as its CFO. Mr. Hankach replaces Mr. Tom Wenner “who is leaving to pursue other opportunities,” the REIT stated.
Novagold Resources Inc. (NG-T) announced its net loss from continuing operations decreased to $5.5-million or 2 cents per share in the second quarter compared with a loss of $9.2-million or 3 cents per share in the second quarter 2018, “primarily due to lower operating losses, higher interest income, accretion of notes receivable, and foreign exchange movements, offset by higher interest expense on the promissory note payable to Barrick.”
The company owns the Donlin Gold project in Alaska along with Barrick Gold Corp.
It said the purchase price will be satisfied through $175-million in cash to be raised by Pieridae through the issuance of term debt and equity, and Pieridae common shares.
“This Acquisition will be immediately accretive to the company and also allows us to enhance the sustainability of our existing asset base,” said Pieridae’s CEO Alfred Sorensen.
"We are excited to expand our presence in Texas by adding a funeral home to complement our existing cemetery operations in the Houston market. This location will tuck-in to our Houston portfolio and is in line with PLC's growth strategy," stated Andrew Clark, Chairman and CEO of PLC.
SSR Mining Inc. (SSRM-Q; SSRM-T) announced it has acquired approximately 8,900 hectares contiguous to the Marigold mine in Nevada, which includes a 100-per-cent interest in the Trenton Canyon and Buffalo Valley properties from Newmont Goldcorp Corp. (NEM-N; NGT-T) and Fairmile Gold Mining Inc for $22-million in cash.
The deal also includes the grant to Newmont of a 0.5 per cent net smelter returns royalty on each of the properties and the assumption of the long-term environmental and reclamation obligations, the company stated.
RNC Minerals (RNX-T) announced “a substantial increase” to the mineral resource for the Western Flanks Zone at its Beta Hunt Gold Mine in Western Australia, based on an updated mineral resource estimate effective as of June 26.
“This increase in resource size is an outstanding result and confirms the exploration potential we always believed existed at Beta Hunt,” stated CEO Mark Selby.