Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Horizon North Logistics Inc. (HNL-T) and 10647802 Canada Limited, operating as Dexterra Integrated Facilities Management, announced they will merge in a share purchase agreement “to create a leading Canadian support services company.”
The companies said the transaction was unanimously approved by both Horizon North and Dexterra’s boards of directors, as well as Dexterra’s sole shareholder, a wholly-owned subsidiary of Fairfax Financial Holdings Limited (FFH-T).
"The transaction combines Horizon North's strong western Canadian focused workforce accommodation and national modular solutions businesses with Dexterra's asset-light facilities management platform and central Canadian focused workforce accommodations businesses," the company said.
Optiva Inc. (OPT-T) reported revenue of US$20.5-million versus US$27.6-million a year earlier. Its net loss was US$16.9-million or $3.17 US per share versus a profit of US$538,000 or 10 US cent per share a year earlier. “The lower earnings were mainly attributable to a decrease in revenues and higher finance costs and income tax expense during the reported period,” the company stated.
Slate Office REIT (SOT.UN-T) announced it has agreed to acquire Cypress Financial Center in Fort Lauderdale, Fla., for US$45.5-million, or US$226 per square foot and an estimated going-in cap rate of 7.4 per cent.
Copper Mountain Mining Corp. (CMMC-T) announced it has revised the mine plan and project schedule at its Copper Mountain Mine in B.C. “with the objective of maintaining solid positive margins and cash flow in response to current market conditions and near-term copper price uncertainty as a result of the coronavirus impact to metal prices.”
The company said it has modified the mine plan "for the current low copper price environment," including cutting the mining rate by approximately 25 per cent to 120,000 to 160,000 tonnes per day for the remainder of 2020 from approximately 200,000 tonnes per day. "The company is focusing on mining the lower-cost areas in the central and north phases of the main pit in order to maintain positive margins," it stated.
The company also revised 2020 production and cost guidance. For instance, copper production guidance was revised to 70 to 75 million pounds from previous guidance of 86 to 96 million pounds.
Well Health Technologies Corp. (WELL-T) announced an agreement with a “long-term focused major Canadian institutional investor” which has agreed to subscribe for, on a non-brokered private placement basis, $10-million in senior unsecured convertible debentures. The net proceeds are expected to be used for future acquisitions, organic growth investments, working capital and general corporate purposes, the company stated.