A roundup of some of the North American equities making moves in both directions today
On the rise
Dollarama Inc. (DOL-T) was up 3.7 per cent on Tuesday after announcing the acquisition of a 50.1-per-cent stake in Latin American value retailer Dollarcity.
“With this transaction, which is expected to be immediately accretive to our earnings, Dollarama is establishing a compelling second growth platform, in complement to our Canadian growth strategy,” said president and CEO Neil Rossy. “After six years of due diligence review and on-the-ground experience in Latin America, we believe that now is the right time to exercise our option to acquire this interest, and that Dollarcity is the right vehicle to capture the growth potential we see in our chosen markets. We have full confidence in our local partners, who will continue to lead the Dollarcity business with our support.”
The deal, valued in the range of $85 million to $95 million, includes an upfront payment of $40-million at closing, which is expected in August.
It is projected to add to Dollarama’s earnings per share in the range of 2-3 cents for the rest of fiscal year, and 5-7 cents in fiscal 2021.
Hydro One Ltd. (H-T) sat 0.3 per cent higher after revealing Tim Hodgson has been appointed by its board of directors to serve as the utility’s chairman starting next month.
He will replace Tom Woods, who announced last week that he would step down from the role at the end of July.
Equinox Gold Corp. (EQX-X) was up 1.7 per cent after announcing it has achieved commercial production at its Aurizona Gold Mine in Brazil.
The Vancouver-based company said the Aurizona processing plant operated at an average throughput of approximately 90 per cent of its name-plate capacity of 8,200 tonnes per day, exceeded 90-per-cent average recovery and produced more than 7,000 ounces of gold during the month of June.
Gold production is expected to continue to increase through the third and fourth quarters of 2019, with average life-of-mine production estimated at 136,000 ounces per year.
“Achieving commercial production at Aurizona is a significant milestone, making Equinox Gold a multi-mine producer and bringing us one step closer to our near-term target of having three mines in production in 2020," said CEO Christian Milau. "We are pleased that Aurizona is ramping up quickly and thank our team, contractors and stakeholders in Brazil for their hard work and support.”
Genworth MI Canada Inc. (MIC-T) was up 3 per cent after Genworth Financial Inc. said it is considering spinning out its large Canadian subsidiary after Ottawa raised national-security concerns about a sale of the entire company to a Chinese conglomerate.
Early Monday, Richmond, Va.-based Genworth and its privately held suitor, China Oceanwide Holdings Group Co. Ltd., announced they have “decided to consider strategic alternatives” for Genworth MI Canada Inc. The Canadian division was partly spun out in an initial public offering in 2009, but remains controlled by the U.S. company.
TransCanna Holdings Inc. (TCAN-C) rose 1.2 per cent after it announced it is buying Lifestyle Delivery Systems Inc. (LDS-C) for approximately $51.7-million in common shares of TransCanna “and the amount resulting from a fixed exchange ratio of one TransCanna common shares for every 10 LDS common shares.”
“We believe that the amalgamation of our two companies will ultimately yield a value greater than the current individual values of LDS and TCAN,” stated LDS CEO Brad Eckenweiler in a release.
Shares of Lifestyle were down almost 15 per cent.
On the decline
Bombardier Inc. (BBD-B-T) fell 2.3 per cent after unveiling the Learjet 75 Liberty, a new six-seat offering with a list price of US$9.9-million.
“The Learjet 75 Liberty represents a step up for customers in the light jet segment, with unprecedented spaciousness and Bombardier’s renowned smooth ride,” said David Coleal, President, Bombardier Aviation. “The newest member of the Learjet family delivers a flight experience that eclipses the competition.”
B2Gold Corp. (BTO-T) finished flat after announcing early Tuesday that it has entered into a binding agreement with Calibre Mining Corp. (CXB-X) or Calibre to acquire its El Limon and La Libertad Gold Mines and the Pavon Gold Project in Nicaragua for US$100-million to be paid with a combination of cash, common shares and a convertible debenture.
Following the completion of the transaction, B2Gold will own an approximate 31-per-cent direct equity interest in Vancouver-based Calibre.
“B2Gold’s ongoing commitment to continuing involvement with the Nicaraguan operations will be secured by its significant equity interest in Calibre, its right to appoint one director to the Board of Calibre and its participation in an Advisory Board to the main Board of Calibre,” said the company in a statement.
Calibre announced it has entered into an agreement with Canaccord Genuity Corp. and Sprott Capital Partners LP for a private placement of up to 167 million subscription receipts for gross proceeds of up to $100-million.
Temple Hotels Inc. (TPH-T) was down 2.8 per cent after G2S2 Capital Inc., a privately held investment holding company, announced it has increased its stake in the Mississauga-based company to 15.73 per cent of Temple’s outstanding common shares.
On June 28, G2S2, which is controlled by controlled George and Simé Armoyan, acquired 728,985 common shares of Temple at a price of $1.75 per share.
It had previously owned 14.83 per cent.
Endeavour Silver Corp. (EDR-T) fell 0.7 per cent after it revealed a fatal accident at the Bolanitos mine in Guanajuato, Mexico on June 29.
The company said a worker was killed by falling rock.
“Endeavour personnel immediately followed mine rescue protocols to close the mine, rescue the injured, inform the family and authorities and conduct a detailed investigation,” the company stated in a release adding that it “emphasizes safety as the top priority in its mining operations. The investigation conclusions and recommendations will be reviewed with key mine-site management and workers at each of Endeavour Silver’s operations this week by Endeavour’s vice president of operations in order to better understand what more can be done to improve safety performance.”
With files from Brenda Bouw, Tim Kiladze, staff and wires
David Leeder