Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Reitmans (Canada) Limited (RET.A-T) announced it’s seeking protection under the Companies’ Creditors Arrangement Act (CCAA) in order to facilitate its “operational, commercial and financial restructuring.” It said the application under the CCAA will be heard by the Québec Superior Court today.
"The CCAA process will allow the company to implement a restructuring plan that addresses the impacts of COVID-19 in order to build a more resilient organization that will be positioned for long-term success," the company stated.
Hexo Corp. (HEXO-T; HEXO-N) announced the pricing of its overnight marketed public offering of units of the company at a price of 90 cents per unit. It said the underwriters have agreed to purchase 55.6 million units for proceeds of $50-million
Each unit includes one common share and one half of one common share purchase warrant exercisable to acquire one common share for $1.05 for five years "subject to adjustment in certain events."
The company said it expects to use the net proceeds for working capital and other general corporate purposes.
Discovery Metals Corp. (DSV-X) announced plans for a non-brokered private placement to raise up to $25-million by issuing 45.5 million units at a price of 55 cents each. Each unit includes one common share and one half of one common share purchase warrant exercisable at 77 cents for two years.
The company said Eric Sprott has agreed to invest $10-million in the private placement. It said the proceeds will be used primarily to fund the continuing exploration program at its Cordero project and its Coahuila projects.
Under the new proposal, Silvercorp will offer 25 cents in cash and 0.1849 of a Silvercorp common share for total consideration of $1.30 per share. That compares with the previous offer of 60 cents in cash or 0.1195 of a Silvercorp common share.
IPL Plastics Inc. (IPLP-T) issued a statement on Monday saying that it’s “aware of media speculation regarding potential transactions that could involve the company,” but that its policy is to not comment on market speculation.
"Furthermore, there is no additional material market update at this time as our recently issued Q1 2020 results, which were released and filed on May 13, 2020, included all relevant and necessary disclosures at this time," it stated.
TerrAscend Corp. (TER-C) announced a non-brokered private placement for gross proceeds of approximately US$30-million, with the ability to upsize to between US$35-million and US$40-million. The company said it has received initial investor commitments totaling US$28-million, including a US$20-million lead order from JW Asset Management LLC.
The company said it intends to use the proceeds to fund its growth initiatives including its U.S. expansion strategy, capital expenditures, working capital, and general corporate purposes.
Quarterhill Inc. (QTRH-T) announced an agreement to sell Hamilton-based software and service provider VIZIYA Corp. for cash proceeds of $49.4-million to Prometheus Group based in Raleigh, North Carolina.
"While VIZIYA has been a solid performer and we were not proactively looking to sell the company, we believe this transaction provides several strategic benefits to Quarterhill," said John Gillberry, chair of Quarterhill.
Sabina Gold and Silver Corp. (SBB-T) announced a $49-million bought-deal financing. It said it has an agreement with a syndicate of underwriters led by BMO Capital Markets and RBC Capital Markets, under which the underwriters have agreed to buy a combination of common shares, flow-through common shares, charity flow-through common shares, and super charity flow-through common shares.
The net proceeds from the common shares will be used to advance development of the company’s Back River Gold Project, while the gross proceeds from the sale of the flow-through common shares, charity flow-through common shares and super charity flow-through common shares will be used for expenditures which qualify as Canadian exploration expenses.
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.