Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Hudson’s Bay Co. (HBC-T) agreed to sell Gilt, a flash-sale, e-commerce company it bought two years ago, and is “right-sizing” its Lord & Taylor’s store footprint, while introducing first quarter financial results for the 13 weeks ended May 5.
Revenue was $3.1-billion, an increase of 1 per cent from the prior year but below expectations of $3.2-billion Overall comparable sales declined 0.7 per cent, the company said, with total comparable digital sales increasing 7.7 per cent. Its net loss from continuing operations was $314-million or $1.33 per share compared to a net loss $214-million or $1.17 in the prior year.
With Gilt, HBC said the division generated less than 4 per cent of the company’s total sales in fiscal 2017, and the disposition “is expected to improve adjusted EBITDA [earnings before interest taxes depreciation and amortization] by $10-million to $15-million on an annualized basis.”
HBC also said it plans to close up to 10 Lord & Taylor stores through 2019. “This reduced store network will allow new leadership to re-think the model and better position Lord & Taylor for future success,” it stated.
Stelco Holdings Inc. (STLC-T) says it has bought lands “beneficially owned” by Legacy Lands Limited Partnership on which Stelco conducts its operations in Hamilton and Nanticoke, Ont. for $114-million. The acquisition will be financed with a 25-year, 8-per-cent per annum mortgage note issued to the Land Vehicle, the company said.
Granite Real Estate Investment Trust (GRT.UN-T; GRP.U-N) says it has appointed Kevan Gorrie as CEO, effective August 1. He most recently served as the president and CEO of Pure Industrial Real Estate Trust.
Mr. Gorrie will replace Michael Forsayeth who had previously announced his upcoming retirement in September.
Algoma Central Corp. (ALC-T) says NovaAlgoma Cement Carriers Limited has acquired a 25-per-cent ownership interest in JT Cement. (Algoma has a 50-per-cent interest in NovaAlgoma Cement Carriers). The investment means it’s joining KGJ Cement Holdings AS and Erik Thun AB of Sweden in the cement company.
“The investment will expand NACC’s global footprint into the Northern European market where KGJ and Thun have a strong presence and will provide additional strength and flexibility to the fleet’s customers,” the company said.
ShaMaran Petroleum Corp. (SNM-X; SNM-Q) says it has an agreement to acquire a further 15-per-cent working interest in the Atrush Block in the Kurdistan Region of Iraq “and certain other assets” from Marathon Oil KDV B.V. for US$60-million. The acquisition will increase ShaMaran’s working interest in Atrush to 35.1 per cent from 20.1 per cent. Its share of Atrush production, reserves and resources will increase by 75 per cent.
The company said it intends to issue US$240-million of new bonds to refinance US$186-million of outstanding existing bonds and finance the acquisition.
The Green Organic Dutchman Ltd. (TGOD-T) says it’s raising $25-million in a bought-deal financing. It has an agreement with underwriters to buy 3.9 million special warrants at $6.40 each. The company said it intends to use the net proceeds “to fund strategic investments and international expansion opportunities.”
Ballard Power Systems (BLDP-Q; BLDP-T) says its subsidiary Protonex has received purchase orders from the U.S. Navy for a total of 13 fuel cell propulsion systems for unmanned aerial vehicle (UAV) or drone platforms. Deliveries of the fuel cell propulsion systems are expected to occur in 2018, the company said.
Pro Real Estate Investment Trust (PRV-UN-X) says it has signed binding agreements to acquire 12 commercial properties for a total of $45.1-million.
The properties include six industrial buildings and developable land in Winnipeg, five standalone retail buildings in Quebec and New Brunswick, and the 50-per-cent remaining undivided interest in an industrial building in Drummondville, Que., the company said.
The REIT also signed an agreement to acquire the assets of Compass Commercial Realty Ltd., a prominent property management platform headquartered in Halifax, N.S.
“The acquisition of Compass is an important strategic initiative,” stated CEO James Beckerleg. “We see it as a major part of the eventual internalization of our full management function, once total asset targets have been achieved and the REIT elects to take this step.”
The total consideration being paid for the transactions includes the issuance of approximately $6-million of Class B limited partnership units at a price of “not less than $2.30 per unit,” the company said.
Organigram Holdings Inc. (OGI-X) says it has received an expanded cultivation license from Health Canada related to its previously announced Phase 3 expansion. “Organigram is also pleased to note that this licensing does not require a new sales license and there will be no delay from harvest to sale,” it stated in a release.
The agreement sees DDC manufacture and distribute Infused’s Canna Hemp CBD and hemp-based products “on an exclusive basis to retail cannabis dispensaries in Colorado,” the company said.
Under the terms of the transaction, Xtreme shareholders will receive 0.29 of an Akita Class A non-voting common share and 59 cents in cash for each share of Xtreme common stock. “The consideration to be received by Xtreme shareholders represents a 32-per-cent premium over the 20-day volume weighted average price of the Xtreme shares for the period ended June 4,” the companies stated in a release.
The cash consideration will be financed from Akita’s cash balances and new credit facilities of $120-million and US$5-million which have been committed by ATB Financial, the company said.
“The transaction has received unanimous approval by the boards of directors of both Akita and Xtreme, and each will recommend the transaction to their respective shareholders for approval,” according to the release. “The combined company, which will operate under the Akita name, will have a fleet of 44 high-spec drilling rigs with operations in major resource basins in the U.S. and Canada.”
Radient Technologies Inc. (RTI-X) says it has filed a “provisional patent application” with the U.S. Patent and Trademark Office for an innovation “related to methods for obtaining nicotine depleted tobacco, without materially altering certain desirable properties of the tobacco.”
Radient says the invention uses its microwave-assisted processing extraction technology and “provides a composition of tobacco that is depleted in nicotine, but retains its appearance and organoleptic properties ... The patent application also includes methods of recovering and purifying the nicotine as a co-product.”
North American Construction Group Ltd. (NOA-T; NOA-N) says it has been awarded a two-year extension to a key master services agreement, with a major oil sands customer, taking the expiration date to August 2022.
“As part of the associated work scope, the company has secured a three-year term commitment for overburden removal, commencing after the completion of the previously announced 2018 work,” the company stated. It said the value of this backlog is expected to be around $120-million.