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Inside the Market's roundup of some of the Canadian small caps making news and on the move today. This will be updated through the morning.
Sonde Resources Corp. announced that its capital resources have been significantly depleted since June 30, 2014 and, to date, its strategic alternatives process has not resulted in a transaction "that would satisfy Sonde's significant financial commitments under the Exploration and Production Sharing Agreement covering the Joint Oil Block."
Sonde said its interim financial statements for the three and nine months ended September 30, 2014 and related disclosures were due Nov. 14, 2014 and the company is presently unable to complete this. This will likely result in the issuance of a cease trade order by the Canadian securities regulatory authorities and could lead to a delisting of the company's common shares from all stock exchanges, the company said.
Sonde Resources is engaged in the exploration for, and acquisition, development and production of, petroleum and natural gas, with operations in Western Canada and North Africa.
Shares fell 92 per cent Tuesday.
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Crombie REIT announced that it is instituting a Distribution Reinvestment Plan (DRIP) to enable Canadian resident REIT unitholders to automatically reinvest cash distributions paid on their Crombie REIT units in additional REIT units.
Crombie REIT has initially reserved for issuance with the Toronto Stock Exchange four million additional REIT units to accommodate the purchase of units under the DRIP. REIT unitholders will be eligible to participate in the DRIP beginning with the distribution record date November 30, 2014 provided that their broker, dealer, bank or other market participant has enrolled them on or before that date.
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Silver Bear Resources Inc. said CEO Mark Trevisiol is stepping down. He will be succeeded by Graham Hill, who was most recently chief operating officer for Axmin Inc., responsible for overseeing the feasibility study and early development of the Passendro gold project in the Central African Republic.
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Sears Canada Inc. had a $118.7-million net loss in its fiscal third quarter, more than double the retailer's comparable loss last year, as same-store sales and total revenue dropped and the bottom line felt a bigger impact from income taxes and asset writedowns.
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Investors should not rely on Chalice Gold Mines' preliminary economic assessment of its Cameron gold project, acquired from Coventry Resources Inc. in February, Chalice said in a statement. The miner issued the statement after a review by the Ontario Securities Commission.
"To the best of the company's knowledge and belief, there is no new material scientific or technical information that would make the disclosure of the results of the Coventry PEA relating to the Cameron Gold Project inaccurate or misleading. However, as Chalice has not updated or prepared a revised PEA for inclusion in its technical report filed in July 2014, reliance should not be placed on the PEA disclosures made in the corporate presentation" in February, Chalice said.
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Miner Elissa Resources Ltd. has bought options to acquire Spectrum Optix Inc., a private technology development company, by advancing up to $3-million over a three-year period towards the development of Spectrum's lens technologies.
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Caledonia Mining Corp. said CFO Steve Curtis is being appointed as its new CEO as current CEO Stefan Hayden is stepping down.
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Gemini Corporation announced third-quarter revenue of $33.74-million, beating Street estimates of $33.70-million. Adjusted earnings per share came in at $0.02, slightly higher than Street estimates of $0.01.
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SilverCrest Mines Inc. announced it has signed a five year option agreement with Evrim Resources Corp. that will give SilverCrest a 100 per cent interest in Evrim's Cumobabi Property in the State of Sonora, Mexico.
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DNI Metals Inc. has announced that it is proceeding with the consolidation of its common shares at a ratio of 10 pre-consolidation common shares for one post-consolidation common share. The purpose of the consolidation is to increase the share price and better position the corporation for the future financing transactions and corporate development opportunities.
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Industrial Alliance Securities analyst Dylan Steuart initiated coverage on Currency Exchange International Corp. with a "strong buy" recommendation and a target price of $28 (Canadian).
An established retail network, combined with potential of aggressive wholesale growth through regional banks, make Currency Exchange International Corp. a "compelling growth play," Mr. Steuart said.
The foreign currency exchange company currently has 30 U.S. retail branches and more than 450 wholesale clients. While wholesale margins are smaller, "increased wholesale relationships are the key growth driver as the client pipeline looks to be healthy in the near term," Mr. Steuart said.
Meanwhile, Currency Exchange has applied for a license to become a Schedule 1 Canadian bank. "While timing of approval is tricky, if Currency Exchange was to obtain approval it would drive new wholesale client sign up and increase margins in the near term," he said.
In other analyst actions today involving Canadian small caps:
Jennings Capital analyst David Ricciardi re-initiated coverage of Contact Exploration Inc. with a "buy" rating and is lowering his price target to 75 cents from 85 cents.
Raymond James downgraded Ensign Energy Services to "underperform" from "outperform" with a price target of $13.50 (Canadian).
Cormark Securities downgraded Northern Frontier to "speculative buy" from "Buy" with a price target of $2.25 (Canadian).
Industrial Alliance Securities initiated coverage on Intertape Polymer Group with a "buy" rating and $22 (Canadian) price target.