Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Just Energy Group Inc. (JE-T; JE-N) announced plans to sell its UK operations, Hudson Energy Supply UK Limited to Shell Energy Retail Ltd. for about$17-million. The company also said it has identified an incremental $20-million in annualized cost savings through its ongoing optimization efforts.
“The sale of our UK operations is part of our broader strategy to concentrate on our higher-margin North American operations, while also improving our liquidity,” said Scott Gahn, CEO of Just Energy, in a reelase. “As well as refocusing our geographic footprint, we have undertaken an in-depth review of our operations and identified ways to improve our business by boosting efficiency and lowering costs.”
The company also said the strategic review process initiated in early June "is ongoing and the board is comfortable with the progress to date."
Atrium Mortgage Investment Corp. (AI-T) announced a $15-million public offering and $10-million non-brokered private placement of common shares. It has an agreement with a syndicate of underwriters that will purchase 1,120,000 common shares at a price of $13.40 each for $15-million and has also agreed to sell 746,300 shares to an entity controlled by an existing shareholder of Atrium on a non-brokered private placement basis, at the Issue Price, for about $10-million. The stock closed at $13.84 on Tuesday.
Atrium said it will use the net proceeds of both financings to repay debt under its revolving operating credit facility, "which will then be available to be drawn, as required, for general corporate purposes, particularly funding future mortgage loan opportunities."
WPT Industrial Real Estate Investment Trust (WIR.U-T) announced it has acquired five distribution properties for a total of US$142.3-million. it said the newly-acquired properties include a previously announced portfolio of four investment properties totaling 1,492,688 square feet for a purchase price of US$109.3-million and an investment property in Nashville 505,000 square feet for a purchase price of US$33-million.
The REIT also announced an $85-million bought-deal financing. It has an agreement to sell to a syndicate of underwriters 6,160,000 trust units at a price of US$13.80 each. The stock closed at $14.20 on Tuesday. The REIT said it intends to use the net proceeds to repay debt, including amounts drawn from its credit facility which were used to fund the closing of the acquisitions, among other uses.
“Our latest acquisitions demonstrate both the continued benefits of the REIT’s private capital pipeline and our ability to source accretive third-party acquisitions in new markets on an off-market basis,” commented Scott Frederiksen, the REIT's CEO.
Exchange Income Corp. (EIF-T) announced a $70-million bought-deal financing. It has an agreement to sell 1,860,000 common shares from its treasury to a syndicate of underwriters. The shares will be offered at a price of $37.65 each. The stock closed at $39.11 on Tuesday.
The net proceeds will be used to fund two acquisitions and for general corporate purposes. The acquisitions include L.V. Control Mfg. Ltd. and Advance Window, Inc. The aggregate purchase price for the two companies is up to $78-million, “if certain post-closing targets are achieved,” the company said. At closing, EIC said it will pay $72-million funded with $62.6-million in cash and $9.4-million in shares.
Boralex Inc. (BLX-T) announced that two of its projects totalling 32.6 MW have been selected in the fourth round of the national call for tenders conducted by the Ministry for the Ecological and Inclusive Transition of France. The two wind power projects are Seuil de Cambrésis Phase 2 (19.8 MW) and Extension de la Plaine d’Escrebieux (12.8 MW).
Boralex said it has a portfolio of more than 1,000 MW of wind and solar projects in France at various stages of development. Boralex currently has 951 MW of wind, solar and thermal sites in operation in France and 2,003 MW worldwide.
Sirona Biochem Corp. (SBM-X) announced it has completed a binding term sheet with Tinyi Trading Company for the distribution of its skin lightener TFC-1067 “following strong commercial interest after clinical trial results.” The company said Tinyi will have distribution rights within Asia as well as exclusive rights for China.
Sundial Growers Inc. (SNDL-Q) issued a statement to address what it called “erroneous media coverage regarding the class action lawsuits filed against our company alleging violations of the U.S. securities laws.”
It said the lawsuits stem from a single online article, "which erroneously described a since-resolved commercial dispute. All of our customer agreements include provisions to replace or return product under certain conditions. The amount of product returned was a fraction of the 554 kilograms erroneously quoted in the article. The return represented a minimal percentage of our total production to date, had no impact on our second-quarter financial results and is expected to have a negligible impact on our third-quarter earnings," the company stated.
Sundial also said it "has always been compliant" with Health Canada regulations in facilities.
“We strongly believe that Sundial did not mislead investors and disclosed all material information to investors in our IPO,” stated Sundial CEO Torsten Kuenzlen in the release. “We are therefore confident that the class action lawsuits filed against Sundial are completely without merit and intend to vigorously defend our company in these matters.”
The Green Organic Dutchman Holdings Ltd. (TGOD-T) announced it’s reviewing financing alternatives in to complete construction for its facilities in Ancaster, Ont, and Phase 1a at Valleyfield, Que., citing “changing market conditions” that have challenged discussions.
The company said it has been in talks for "ordinary course commercial bank facilities and equipment leasing. However, due to changing market conditions, those sources of financing have been unavailable on acceptable terms within the timeframes required, leading the company to commence a review of additional alternatives."
The company said it has no debt and $56.7-million in cash available in Canada, including $40.2-million in restricted cash allocated to capital expenditures.
It said it might revise the construction schedule for its Ancaster and Valleyfield projects if it is unable to obtain “sufficient financing on reasonable terms, within the required timeframe.”