Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Dream Industrial REIT (DIR.UN-T) announced a $200-million public equity offering. The REIT said it has an agreement to sell, on a bought deal basis, 14,660,000 units of the trust at a price of $13.65 per unit to a syndicate of underwriters led by TD Securities Inc.
The trust said it intends to use the net proceeds from the offering, together with cash on hand, to fund a portion of the purchase price for its previously announced acquisition of $327-million of light industrial and logistics assets in Germany and the Netherlands. The REIT said the proceeds will also fund a portion of its previously announced $170-million of Canadian acquisitions, primarily in the Greater Toronto Area and to repay debt, including approximately $200-million of Canadian mortgage debt.
"In addition to the previously announced $170-million of acquisitions in Canada, the trust is in negotiations on another $100-million of acquisitions, predominantly in the Greater Toronto Area," the company said.
Absolute Software Corp. (ABT-T) reported second-quarter revenue of US$25.8-million, up 6 per cent from US$24.4-million a year ago.
Net income was US$2.7-million or 6 cents US per share versus net income of US$1.8-million or 4 cents US per share a year ago
Analysts were expecting revenue of US$25.9-million and earnings of 5 cents US per share.
Canaccord Genuity analyst Doug Taylor increased his target on Absolute to $10.50 from $10 and maintained his "buy" recommendation after the earnings report, reflecting the "roll-forward of our relatively static model."
Mr. Taylor noted that management guidance for the fiscal year ending in June was unchanged. “We continue to maintain a 12-to-13 [times] EBITDA target multiple. We believe there is upside to this valuation range should Absolute continue to march its organic growth trajectory higher; the current year guidance reflects 4-to–7 per cent,” he wrote in a note on Tuesday. “The ongoing mix shift in its business and the theme of Absolute as a platform to persist third-party software are supportive of higher growth in future years, in our view. While the stock has performed well of late, we still see further upside to our updated target, which represents a 10.4-per-cent return from current levels (including a 3.3-per-cent dividend).”
Star Diamond Corp. (DIAM-T) announced it has formed a special committee of non-management directors to review and consider an exercise notice received in November from Rio Tinto Exploration Canada Inc. The company said RTEC gave notice that it was exercising all four of its options under the joint venture agreement dated June 22, 2017. The special committee’s work will include whether the options “have been validly exercised by RTEC, to oversee the corporation’s dealings with RTEC including in relation to the exercise notice and to consider the corporation’s alternatives in the context of the exercise notice.”
BTB Real Estate Investment Trust (BTB-UN-T) announced the acquisition of an office building in Ottawa for $21.75-million, excluding transaction costs. BTB also acquired an excess zoned land for an additional 60,000 square feet of office space, which was included in the purchase price. This land can be developed or sold by BTB, the REIT stated.
Theratechnologies Inc. (TH-T; THTX-Q) announced the signing of long-term agreements with the Massachusetts General Hospital and Dr. Steven Grinspoon towards the development of tesamorelin for the potential treatment of non-alcoholic fatty liver disease (NAFLD) and non-alcoholic steatohepatitis (NASH) in people living with HIV.
“We feel privileged to collaborate with the Massachusetts General Hospital, the largest Harvard Medical School teaching hospital. The MGH will give us access to the talent, knowledge and expertise of Dr. Grinspoon. We also look forward to working with Dr. Grinspoon since he is one of the foremost world experts on metabolic conditions related to HIV. As we plan to initiate the Phase III trial of tesamorelin as a potential treatment for NAFLD/NASH in people living with HIV, Dr. Grinspoon will be one of the key collaborators,” said Luc Tanguay, CEO of Theratechnologies Inc., in a release.
GoGold Resources Inc. (GGD-T) announced a $15-million bought-deal financing. The company said it has entered into an agreement with Sprott Capital Partners LP and PI Financial Corp. as co-lead underwriters, along with BMO Capital Markets, which have agreed to purchase 21,428,571 units of the company for 70 cents each. Each unit will consist of one common share and one-half of one common share purchase warrant exercisable at 85 cents for 24 months following the closing of the offering.
The company said it intends to use the net proceeds to fund additional exploration on its Los Ricos project and for corporate development and general corporate purposes.