Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Park Lawn Corp. (PLC-T) says it’s buying two U.S. businesses: Signature Funeral and Cemetery Investments, LCC and Citadel Management LLC for a total of about US$136.4 million in cash.
The acquisitions will together add six new states into Park Lawn’s portfolio and expands its footprint in Texas.
The company also announced an agreement with a syndicate of underwriters to raise C$165-million of subscription receipts in a bought deal to finance the Signature acquisition. The acquisition of Citadel will be funded from PLC’s existing credit facility, the company said.
“The acquisitions are in line with our communicated growth strategy and significantly increase our footprint and presence in the U.S. market,” said chairman and CEO Andrew Clark.
Trilogy Metals Inc. (TMQ-T; TMQ-N) says it’s raising US$25-million in a bought-deal financing. It has an agreement with a syndicate of underwriters that will buy 21.6 million common shares at US$1.16 per share.
The company said it intends to use the net proceeds towards developing its Arctic Project, for exploration in the Ambler mining district and for general corporate purposes.
The Westaim Corp. (WED-X) said in a release that it “may consider opportunities to enhance the growth and value” of investment company Houston International Insurance Group, Ltd. (HIIG). It said the decision was “in view of the ongoing insurance industry consolidation activity” and “several unsolicited inquiries.”
Westaim CEO Cameron MacDonald said HIIG has “significantly improved its financial position, acquired and established new business lines, prepared the organization for larger scale and assembled a highly skilled and experienced management team” and as a result is “currently in an excellent position to accelerate the growth of its business, particularly in an improving industry environment.”
It said the agreement covers eight of Resolute’s Canadian pulp and paper mills.
“We are pleased that we have reached a tentative agreement with Unifor national and local leadership that recognizes the contribution of employees to the success of the business and provides stability for our customers, shareholders, communities and other company partners,” said CEO Yves Laflamme. “Once ratified, this agreement will support long-term investments in our Canadian operations.”
Black Diamond Group Limited (BDI-T), which provides modular space solutions and workforce accommodations, says it has entered into an agreement to assume the land lease and ongoing operations of its currently owned 1,244-room Sunset Prairie Lodge in B.C.
Under the terms of the agreement, Black Diamond will receive a cash payment of $11.2-million, “which is net of the costs associated with acquiring the roughly 60-acre crown lease with a remaining 8-year term and a renewal option,” it stated.
It said the payment is from the current tenant and customer, a Canadian oil and gas producer. “In exchange for the cash payment, Black Diamond will take responsibility for the eventual cost of dismantling the lodge.”
The net proceeds will be used to reduce debt and “to provide further financial flexibility to fund growth initiatives and for general corporate and working capital purposes.”
CEO Marcel Bourassa and chief financial officer Jean-Marie Bourassa will participate in the offering by purchasing, through their holding company, a total of $1-million worth of shares.
The company also said its first-quarter results, to be announced on May 10, “remain in line with management’s expectations and [first quarter] budget, representing approximately 20 per cent of full-year budget as a result of usual seasonality.”
Savaria also reaffirmed its full fiscal year 2018 outlook, excluding any new acquisitions.
The company said it intends to use the net proceeds for working capital and general corporate purposes.
Quarterhill Inc. (QTRH-T; QTRH-Q) says its International Road Dynamics Inc. subsidiary has been awarded a contract valued at US$5-million with the California Department of Transportation to provide equipment and software maintenance and on-call service for their network of Weigh-in-Motion systems. “IRD continues to renew our key multi-year contracts and sign significant new agreements within our service and maintenance markets around the world, increasing the recurring revenue aspects of our business,” stated CEO Terry Bergan.
The company said it intends to use the net proceeds for general corporate purposes.
“We have always considered a Canadian presence to be a critical component of our business strategy,” said chairman and CEO Scott Boyes. “While we have never intended to build-out the massive cultivation facilities being constructed by some of the other Canadian Licensed Producers, we will be focusing on utilizing the advanced extraction and distillation processes developed by our U.S. operations to produce and market the MPX-branded, award-winning, concentrates in Canada, commencing with high-quality cannabis oils, followed by the broader range of MPX products as they become permissible under ACMPR rules. We are also excited about the import/export opportunities available to Canadian LP’s.”
Emerald Health Therapeutics Inc. (EMH-X) says it has an agreement with VANC Pharmaceuticals Inc. that gives VANC rights to sell and distribute certain proprietary products in Canada to licensed pharmacies.
VANC also issued to an Emerald affiliate warrants to acquire 3 million common shares at 33 cents each.
“Our goal is to be strongly positioned to sell medicinal cannabis through pharmacies. With VANC’s existing and developing agreements with pharmaceutical wholesalers, a national sales force, and relationships with key pharmacy chain decisionmakers and stakeholders, VANC would be well-prepared to achieve penetration for Emerald products,” said Avtar Dhillon, executive chairman of Emerald.
“Victory Square is pleased to announce an investment into LocoNoco, a decision-making platform that makes it simple for developers to work with RPA [Robotic Process Automation], smart contracts and AI,” said Shafin Diamond Tejani, CEO of Victory Square. “This investment, along with others we have made thus far in 2018, are aligned with our thesis at Victory Square that emerging technologies such as AI and Blockchain will bring major changes to traditional business models.”