Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Calian Group Ltd. (CGY-T) announced that it has acquired EMSEC Solutions Inc., which specializes in radio frequency emission security and technical surveillance countermeasures.
“[The company’s] wealth of cybersecurity expertise will position Calian into a dominant position within the emissions security field and provide our cyber solutions practice with a unique differentiator, setting us apart with a range of offerings and talented services team,” said Sandra Cote, Calian’s vice-president, information technology.
Calian CFO Patrick Houston said that, with annual revenues of approximately $5-million and “a positive margin profile,” the company expects EMSEC to be “EBITDA accretive starting immediately.”
Royal Road Minerals Limited (RYR-X) announced a $10-million bought-deal offering. It has an agreement with a syndicate of underwriters led by Stifel GMP that has agreed to buy about 27 million shares at 37 cents each. The stock closed at 41 cents before the announcement.
The company said it plans to use the net proceeds to fund exploration expenditures at its projects in Nicaragua and Colombia as well as for working capital and general corporate purposes.
Cardinal Resources Limited (CDV-T) is asking its shareholders to "take no action" on an unsolicited takeover offer for the company of 66 cents per share from shareholder Nordgold.
Cardinal said it has obligations under the "bid implementation agreement" entered into with Shandong Gold Mining (HongKong) Co., Limited and Shandong Gold Mining Co., Ltd., on June 18.
It also says the Nordgold takeover bid "will need to be considered in detail by the board, together with the special purpose committee and its financial and legal advisers."
Theratechnologies Inc. (TH-T; THTX-Q) reported revenue of US$17.2-million for the second quarter ended May 31 compared to US$15.6-million a year ago. Analysts were expecting revenue of US$23.5-million, according to S&P Capital IQ.
The company reported a net loss of US$5.8-million or 8 cents US per share in the second quarter, which was in line with expectations and compared to a net loss of US$3.2-million or 4 cents US for the same period last year.
Nomad Royalty Company Ltd. (NSR-T) announced an agreement with The Bank of Nova Scotia, Canadian Imperial Bank of Commerce and The Royal Bank of Canada for a $US50-million revolving credit facility with the option to increase to US$75-million, subject to satisfaction of certain conditions.
Chief financial officer Elif Lévesque said the completion of the facility will provide the company with additional financial flexibility "as we pursue the growth of our business and represents another important milestone in the evolution of our company. "
Nomad said it intends to use the facility for future royalty and stream acquisitions.
Cornerstone Capital Resources Inc. (CGP-X) announced on Wednesday it intends to urge SolGold Plc shareholders to replace the company’s entire board, a day after rejecting the London-listed miner’s takeover offer for the second time.
Cornerstone has an 8 per cent stake in SolGold, making it the BHP Group,-backed company’s fourth-biggest shareholder.
“The current SolGold Board is incapable of managing the affairs of SolGold for the benefit of all shareholders in a prudent and transparent manner,” said Greg Chamandy, chairman of Cornerstone, in a statement.
The proposed Franco-Nevada royalty financing will significantly destroy shareholder value for all SolGold shareholders, Chamandy added.
SolGold in May had announced a financing package of up to $150 million with streaming company Franco-Nevada Corp to develop its Alpala project, a copper-gold deposit in northern Ecuador.
The Canadian copper and gold miner said it expects the SolGold’s new board to carefully review the terms of the Franco-Nevada financing package and take appropriate action to terminate the deal if it is not in the best interests of SolGold and its shareholders.
SolGold made an all-stock transaction offer of 11 SolGold ordinary shares for each Cornerstone share late in June after its earlier proposal in 2019 was rejected on grounds that it undervalued the Canadian company.
Cornerstone said on Tuesday about 65 per cent of its shareholders would not support SolGold’s second offer.
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