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Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news

The Paper Excellence Group has signed a deal to buy Resolute Forest Products Inc. (RFP-T) in an agreement that values the company at US$2.7-billion.

Under the proposal, the parent company of Domtar Corp. will pay US$20.50 per Resolute share, a 64 per cent premium to the share’s closing price on Tuesday.

Resolute shareholders will also receive a contingent value right that entitles the holder to a share of future softwood lumber duty refunds on approximately US$500-million of deposits paid by Resolute through June 30.

Paper Excellence says Resolute will become a wholly owned subsidiary of Domtar and continue to operate on a business-as-usual basis under the Resolute name.

Resolute’s management team will remain in place at the company’s headquarters.

The deal is subject to shareholder and regulatory approvals as well as other customary closing conditions. It is expected to close in the first half of next year.

- The Canadian Press

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VitalHub Corp. (VHI-T) announced a new customer contract with NHS Grampian, marking the company’s entrance into the National Health Service Scotland market.

NHS Grampian is an NHS board which forms one of the 14 regional health boards of NHS Scotland. Grampian is responsible for providing health and social care services to a population of more than 500,000 people, the company stated.

Grampian has signed a licensing agreement to access VitalHub subsidiary Intouch with Health’s (Intouch) patient flow solutions.

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Enghouse Systems Ltd. (ENGH-T) announced its German-based subsidiary Enghouse AG has acquired NTW Software GmbH, based in Innsbruck, Austria and Munich, Germany.

NTW provides a suite of products, ranging from attendant console to contact centers for organizations of all sizes primarily within the Cisco market segment, the company stated.

“NTW’s team and products expand our existing console and contact center business in Central Europe, adding Unified Communication products to Enghouse’s channel product portfolio,” said Steve Sadler, CEO of Enghouse.

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Trilogy Metals Inc. (TMQ-T) reported a net loss of US$3.4-million or 2 US cents per share for its second quarter ended May 31. The expectation was for a loss of 2 US cents per share. The results compared to a loss of US$3.4-million or 2 US cents per share for the same quarter a year ago.

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Quarterhill Inc. (QTRH-T) subsidiary Wi‐LAN Inc. announced a wireless technology-related license agreement with a company in the automotive industry.

“We are very pleased to have now signed a second major automotive maker to our wireless technology patents,” said Andrew Parolin, CEO of WiLAN. “We believe this license demonstrates the continued strength of WiLAN’s wireless portfolio and, in particular, its relevance to LTE and 5G technology used in many vehicles today.”

The license fees payable to WiLAN and all other terms and conditions of this agreement are confidential, the company stated.

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Voyager Digital (VOYG-T) said on Wednesday it has filed for bankruptcy, a week after the crypto lender suspended withdrawals, trading and deposits to its platform as it sought additional time to explore strategic alternatives.

In its Chapter 11 bankruptcy filing on Tuesday, New Jersey-based Voyager estimated that it had more than 100,000 creditors and somewhere between $1 billion and $10 billion in assets, and liabilities worth the same value.

Chapter 11 bankruptcy procedures put a hold on all civil litigation matters and allow companies to prepare turnaround plans while remaining operational.

“The prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital on a loan from the company’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now,” Voyager CEO Stephen Ehrlich said in a statement.

Last week, Voyager said it had issued a notice of default to Singapore-based crypto hedge fund Three Arrows Capital (3AC) for failing to make required payments on a loan of 15,250 bitcoin (approximately $324 million) and $350 million worth of USDC, a stablecoin.

Later that week, 3AC filed for chapter 15 bankruptcy, which allows foreign debtors to shield U.S. assets.

- Reuters

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Hive Blockchain Technologies Ltd. (HIVE-X) announced that it’s late filing its annual report on Form 40-F, which included annual audited financial statements, as well as its CEO and CFO certifications and its management discussion and analysis filing in Canada for the fiscal year ended March 31.

As a result of the delayed filing, the company said it received a letter from the Listing Qualifications Department of the Nasdaq Stock Market saying it was not in compliance with the listing requirements. The company said the letter has no immediate effect on its listing, but it’s required to submit a plan to regain compliance within 60 days.

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Sandfire Resources America Inc. (SFR-X) announced that a District Court has issued an order on remedies that will allow Phase I construction of the Black Butte Copper Project to be completed under the existing permit.

The order is related to an April 8th ruling in a lawsuit against the Montana Department of Environmental Quality (DEQ) and Sandfire subsidiary Tintina Montana Inc. filed by what the company called “mining adversaries” in June 2020, challenging the Black Butte Copper Project.

The ruling found that the Montana DEQ had violated aspects of the Montana Environmental Policy Act and the Montana Metal Mine Reclamation Act in its grant of a Mine Operating Permit for the Black Butte Copper Project. “On July 1, 2022, plaintiffs and defendants filed a joint motion recommending a stipulated order for remedies,” the company stated. It said the judge’s order will allow Tintina Montana to complete Phase I construction under the existing permit while it pursues an appeal.

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