Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Interfor Corp. (IFP-T) said the Toronto Stock Exchange has accepted the company’s notice of its intention to amend its normal course issuer bid. The amended bid will allow for the company to purchase 10 per cent or up to 6.9 million shares for the year up toMarch 6, 2019. “The amended NCIB increases the maximum number of common shares that may be repurchased by an additional 3,434,356 common shares,” the company stated.
Martinrea International Inc. (MRE-T) said it intends to subscribe for 11.5 million common shares in NanoXplore Inc. (GRA-X) through a private placement announced by NanoXplore. Martinrea said the investment would bring its ownership interest in NanoXplore to approximately 16 per cent.
“We believe our strategic investment in NanoXplore is a good one, and our involvement will help NanoXplore in its operations and development," stated Pat D’Eramo, Martinrea’s CEO. "We are very excited with the opportunities we see in the development and use of graphene-enhanced products."
North American Construction Group Ltd. (NOA-T; NOA-N) announced the acquisition of 31 used ultra-class haul trucks under a long-term purchase arrangement with an existing oil sands client. " This is the initial offering made under a recent contract amendment that provides NACG with the right of first refusal to purchase assets the client retires," the company stated.
It said the transaction includes the purchase of 16, 380-ton capacity haul trucks," a first for NACG ... ."
"Our inclusion into the TSX Composite Index is a reflection of our outstanding track record of delivering consistent, strong revenue and earnings growth as well as returning shareholder value," stated Brian Hill, Aritzia founder and CEO. "The addition to the index provides an opportunity to broaden our investor base, increase our liquidity and further drive shareholder value."
The agreement calls for Emblem shareholders to receive 0.8377 of an Aleafia common share in exchange for each Emblem common share, representing the equivalent of $1.21 per Emblem share and a premium of 27 per cent based on the closing prices of Aleafia and Emblem shares Monday. When the transaction is completed, it is expected that existing Aleafia and Emblem shareholders will own approximately 59 per cent and 41 per cent of Aleafia, respectively, on a fully diluted in-the-money basis.
The companies said the transaction has been unanimously approved by Emblem’s special committee and board of directors.
“The Emblem acquisition rapidly accelerates the execution of Aleafia’s strategy to become a vertically integrated, diversified cannabis company. It is difficult to overstate the significance of securing the highest quality medicine for our patients and Aleafia” said Aleafia Health CEO Geoffrey Benic.
Wayland Group (WAYL-CN) announced its board has initiated a process to explore a broad range of strategic alternatives, “including, but not limited to assessing the potential spin-out and/or European listing of its international assets in an effort to unlock the value of the company’s vast international asset portfolio, as well as its underlying domestic Canadian assets.”
The company said any spinout transaction of the international assets could include the company’s European, Latin American, and Asia-Pacific operations.
“The company strongly believes in its current strategy; however, it does not believe its current share price accurately reflects the global portfolio Wayland has, and continues to create,” it stated.
Green Thumb Industries Inc. (GTII-CN) said it has been awarded four additional retail licenses by the Pennsylvania Department of Health. Each license allows for the opening of up to three stores. "The state awarded only 23 new licenses after receiving 180 applications. The company said the new stores will be opened in Philadelphia and Pittsburgh.
“We look forward to expanding our presence and providing more access to alternative ways of well-being to Pennsylvanians,” said GTI Founder and CEO Ben Kovler.
ATS Automation Tooling Systems Inc. (ATA-T) announced has entered into a definitive agreement to acquire Comecer S.p.A., which it describes as a “leader in the design, engineering, manufacture and servicing of advanced aseptic containment and processing systems for the nuclear medicine and pharmaceutical industries.”
The total cash purchase price for the acquisition will be 113 million Euro, the company stated. The company said it will fund the acquisition primarily from cash on hand and its credit facilities.
Osisko Gold Royalties Ltd (OR-T; OR-N) said its Osisko Bermuda Limited (OBL) subsidiary has received proceeds of US$118.5-million from Pretium Exploration Inc., a subsidiary of Pretium Resources Inc. (PVG-T) in regards to the closing of Pretium’s exercise of its option to fully repurchase OBL’s interest in the Brucejack gold and silver stream.
Osisko said it expects to use the proceeds to repay outstanding amounts of approximately $58-million under the revolving credit facility and to fund share repurchases as part of its previously announced normal course issuer bid.
“Given the current market conditions and based on the confidence we have in the strength of our business and the quality of our assets, we believe the company’s shares are an attractive investment opportunity and are prepared to deploy up to C$100 million towards our share buyback program," stated CEO Sean Roosen.
Home Capital Group Inc. (HCG-T) announced preliminary results of its substantial issuer bid to repurchase for cancellation up to $300 million of its common shares.
Home Capital said it expects to take up and purchase for cancellation about 18.2 million shares at a purchase price of $16.50 per share. "The shares expected to be purchased under the offer represent approximately 22.7 per cent of the shares issued and outstanding.
“We are pleased that the strength of our balance sheet and our business put us in a position to create value by returning this capital to our shareholders,” stated CEO Yousry Bissada. “This transaction offered liquidity to the shareholders who participated while being significantly accretive to the rest of our shareholders.”
The company said Columbia Insurance Company, a wholly-owned subsidiary of Berkshire Hathaway Inc., made a purchase price tender of all of its shares, representing approximately 19.99 per cent of the outstanding shares. “As a result, immediately following take-up of the shares, Berkshire is expected to hold less than 10 per cent of the outstanding shares,” the company stated.
“We are delighted to see Home Capital back on its feet with healthy liquidity and a solid capital position,” Warren Buffett, Berkshire chairman and CEO stated in a separate release.