Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Magellan Aerospace (MAL-T) says it has signed an agreement with Hamilton Sundstrand Corp., a UTC Aerospace Systems Company, to manufacture “complex magnesium and aluminum castings for various military and commercial aerospace platforms.” The company said the castings will be produced by Magellan’s facilities in Haley, Ont. and Glendale, Arizona.
“This new long-term agreement with Hamilton Sundstrand provides the framework for a new level of strategic alignment with Magellan,” the company stated.
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Cannabis Wheaton Income Corp. (CBW-X) says it’s raising $100-million a bought-deal financing. It has an agreement with a syndicate of underwriters, led by BMO Capital Markets, to buy 71.5 million units at $1.40 each. Each unit entitles the holder to acquire one common share of Cannabis Wheaton and one-half of one common share purchase warrant, the company said.
Each full warrant will entitle the holder to buy one share of the company at a price of $1.85 each for up to 24 months.
The company says it plans to use the net proceeds for capital expenditures “relating to domestic and international operations and capacity expansion, for potential new investment opportunities and for general working capital purposes,” it said.
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Probe Metals Inc. (PRB-X) says it’s raising $14-million in a bought-deal financing. It has entered an agreement with Sprott Capital Partners, a division of Sprott Private Wealth LP, on behalf of a syndicate of underwriters to buy a combination of flow-through units of the company at a price of $1.90 per unit and non flow-through units at $1.15 each. The gross proceeds will be used to fund exploration on Probe’s projects in Québec and for working capital purposes.
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Nutritional High International Inc. (EAT-CN) says it’s purchasing a property in Long Beach, Cali. for US$1.9-million that will be used as a distribution hub in southern California for its subsidiary Calyx. “We are very pleased to announce our expanded infrastructure in southern California to support the growth of Calyx’s distribution capabilities in this high-value market,” stated Jim Frazier, CEO of Nutritional High.
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Pinnacle Renewable Holdings Inc. (PL-T) says it has entered into a new long-term, “take-or-pay” off-take contract with Japan’s Hanwa Co., Ltd. Under the terms of the contract, Pinnacle says it will supply 75,000 metric tons annually of industrial wood pellets to Hanwa starting in early 2022. The industrial wood pellets will be used by a biomass power generation plant in Japan. “We are pleased to enter into this long-term relationship with Hanwa, as it continues to contribute to Japan’s strong commitment to decarbonization,” stated Pinnacle CEO Robert McCurdy in a release.
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Frontera Energy Corp. (FEC-T) says it closed a US$100-million revolving credit facility arranged by Itaú Corpbanca Colombia S.A., Citibank N.A., JPMorgan Chase Bank, N.A., HSBC Mexico, S.A., Institución de Banca Multiple, Grupo Financiero HSBC and Bank of America Merrill Lynch. It said the funds will be used to provide letters of credit to fund exploration and transportation commitments in Colombia and Peru. The facility will replace the company’s current secured letter of credit facility, which has US$81.9 million of used capacity as of March 31, and matures on June 22, the company said.
“The entering into of this facility, following rigorous due diligence performed by our lenders, validates the long-term viability of Frontera’s strategy, operations and finances,” stated CEO Richard Herbert. “It’s also a model for our agile approach to managing our capital structure, as well as operations.”
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Cobalt 27 Capital Corp. (KBLT-X) says its subsidiary. Electric Metals Streaming Corp., has entered into a metal purchase and sale agreement with Ramu Nickel Limited for a cobalt-nickel stream on its interest in the producing Ramu mine in Papua New Guinea.
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Atlantic Gold Corp. (AGB-X) reported earnings of $3.3-million in the first quarter, an increase of $4.8-miion compared to a loss of $1.5-million in the same 2017 period. Commercial production of the company’s Moose River Consolidated Gold Mine on March 1.
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Newstrike Resources Ltd. (HIP-X) says it has an investment agreement with Inner Spirit Holdings Ltd. that sees the two companies acquire equity interests in each other.
The agreement also sees them enter into a strategic alliance agreement for the retail distribution of Up Cannabis products and the creation and operation of Up Cannabis-branded customer lounges or “Experiential Hubs” in each of Inner Spirit’s stores. Inner Spirit intends to establish a chain of branded adult-use cannabis dispensaries across Canada under the “Spiritleaf” banner.
“Under the proposed strategic alliance, Newstrike and Spirit Leaf will create and operate Up Cannabis Experiential Hubs within Spiritleaf’s stores where consumers can enjoy the Company’s quality lifestyle brands,” the companies said.
Newstrike says it will make a total investment in Inner Spirit valued at $2.25-million in half cash and half shares. The shares to be issued on closing will be issued at a price of 90 cents each. Inner Spirit, Inner Spirit will issue to Newstrike 15-million units — to offered under Inner Spirit’s proposed initial public offering at a price of 15 cents per unit.
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PetroShale Inc. (PSH-X) says first-quarter revenue increased 28-per-cent year-over-year to $19.3-million. EBITDA [earnings before interest, taxes, depreciation and amortization] increased to $10.9-million, 36-per-cent higher than the first quarter of 2017, the company said. Production averaged 3,315 barrels of oil equivalent per share in the first quarter, a 56-per-cent increase from the fourth quarter of 2017.
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Investor and entrepreneur Brett Wilson has increased his stake in Maxim Power Corp. (MXG-T) to 25.6 per cent from 21.4 per cent. He bought the shares, together with a trust, at a price of $2.40 per share or about $5.5-million. The shares were bought from two third parties on Tuesday. Maxim’s chairman and interim CEO Bruce Chernoff also increased his stake to 25.8 per cent from 21.6 per cent after buying shares at $2.40 each.
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Interfor Corp. (IFP-T) says it has resumed operations at its sawmill in Grand Forks, B.C. following recent severe flooding in the area. The sawmill was temporarily curtailed on May 10 as a precautionary measure, the company said.
“Even though the sawmill was not operating during this time, a series of measures were taken by mill personnel to protect the operation against potential damage,” it said in a release. “Fortunately, such actions limited the risk to the mill’s infrastructure and equipment and has allowed the mill to resume operations now that the water level has receded. There are ongoing issues in the region related to rail line damage and the company will be working with its carriers and customers to manage through the related logistics issues.”