Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
HBC, owner of Galeria Kaufhof, said it is forming a joint venture with Signa Holding GmbH, which runs Karstadt Warenhaus, bringing together Germany’s two top department stores chains. The deal follows a failed attempt by Austrian-based Signa to purchase Galeria Kaufhof outright in late 2017. HBC said in July that talks with Signa had resumed.
Under the agreement, HBC will own 49.99 per cent of the retail operations, and Signa will get a 50-per-cent stake in the joint venture’s combined real estate holdings. HBC, which also Hudson’s Bay, Saks Fifth Avenue and Lord & Taylor banners, will get $616-million in proceeds from Signa in the deal.
Kaufhof operates 97 stores and Karstadt has 80.
According to HBC, the cash and implied asset value equate to $8.71 a share. HBC shares closed at $10.78 on the Toronto Stock Exchange on Monday, having fallen 16 per cent in the past 12 months.
- Jeffrey Jones
Paulson & Co. Inc. one of the largest, long-term shareholders in Detour Gold Corp. (DGC-T) published a letter to fellow shareholders and launched www.shareholdersfordetour.com, where it says shareholders can find information leading up to the special meeting of shareholders which Detour Gold has scheduled for Dec. 11, 2018.
"Paulson & Co. Inc. is seeking your support to change Detour Gold’s board of directors," the letter states. "Many other fellow long-term investors have already expressed the need for change in the company’s leadership. The board must be held accountable for the value destruction, disregard for shareholders, poor disclosure practices, failing leadership and culture of entitlement at Detour Gold over many years ... ."
In January Mr. Smed agreed to step down as CEO, the company said, and become executive chair as part of the company's decision to implement a transition plan for senior management.
“We acknowledge the enormous contribution Mogens has made since founding DIRTT, and this was a very difficult and carefully considered decision by the board," stated board chair Steve Parry. "However, Mogens has not adequately performed the agreed assigned duties, requiring the board to align management resources to begin building a more collaborative, adaptable and responsive team that creates the ability to successfully scale the business.”
In a separate press release, DIRTT appointed Kevin O’Meara as CEO and director of the board, effective Monday.
“DIRTT has performed an extensive search process to identify a CEO for the past eight months, identifying the largest applicant pool possible and conducting thorough interviews of highly qualified candidates. Today, DIRTT announced the new CEO Kevin O’Meara, who was the clear choice to the board, senior management and Smed,” said Mr. Parry.
Yellow Pages Limited (Y-T) announced on Monday the lockout of its approximately 130 of its unionized Quebec sales representatives.
"Despite numerous bargaining sessions, the intervention of a conciliator, and the company's willingness to reach an agreement, the company has concluded that the union has been inflexible during negotiations to renew the sales collective bargaining agreement for Quebec," it stated. "Given the deadlock, the company was faced with no realistic choice but to impose a lockout."
Yellow Pages said its customers "will continue to be well-served by management during the lockout."
Namaste Technologies Inc. (N-X) said it still plans to pursue the listing of its common shares on the NASDAQ Capital Market. "Due to company developments and a recent increase in its share price, the company is now closer to meeting the requirements to list on NASDAQ," it stated. "Based on the company's current share price, and the anticipated increase in sales through the launch of its Access to Cannabis for Medical Purposes Regulations sales license, the company currently intends on reaching the share-price target organically without any share consolidation."
"Advancing to a Tier 1 listing on the TSXV reflects Newstrike's continued progress and development as a company with Canada's legalized adult-use cannabis market fast approaching," said CEO Jay Wilgar. "We're excited to reach this listing milestone and we look forward to others as we execute our strategy to build Up Cannabis as a premier adult-use cannabis brand across Canada."
Auxly Cannabis Group Inc. (XLY-X) and Lotus Ventures Inc. (J-CN) closed a deal that sees closing Auxly make an additional investment to partially fund the completion of Lotus’ 22,500-square-foot facility in B.C.
The transaction is in addition to Auxly’s $1-million subscription of common shares of Lotus completed in January. Auxly said it advanced an additional $4-million to Lotus to partially fund the completion of the facility.
In connection with the transaction, Auxly was issued an additional 3.8 million common shares of Lotus and will be entitled to purchase or otherwise direct the sale of 50-per-cent of the facility’s total production. Auxly also retains a right of first offer to purchase the remaining 50 per cent of cultivation output from the facility as well as a right of first refusal to finance a prescribed portion of the first expansion and all or a portion of any further expansions of the facility.
“Lotus is a partner that we value deeply, having been part of the original cohort of streaming partners at the inception of Auxly," stated Hugo Alves, president of Auxly.
Osisko Gold Royalties Ltd (OR-N; OR-T) says it has an agreement to provide Falco Resources Ltd. (FPC-X) with a secured senior $10-million loan that matures Dec. 31, 2018 with a 7 per cent annual interest rate, compounded quarterly. The loan will be used for the advancement of Falco’s Horne 5 Project and for general corporate purposes, the company said.