Derek Warren, Portfolio Manager at Morguard Financial Corp. answers your questions about BTB REIT, Chartwell REIT, FAM REIT, and Summit Industrial Income REIT.
Inside the Market's roundup of some of the Canadian small caps making news and on the move today. This post will be updated throughout the morning
Long Run Exploration Ltd. said it would slash its monthly dividend of $0.035 per share ($0.42 per share annualized) to $0.0175 per share ($0.21 per share annualized) and that it currently has "non-core property disposition packages that are being actively marketed as part of our ongoing asset rationalization process. For 2015, we are targeting the sale of 1,000 to 4,000 boe/d of non-core assets."
BMO Nesbitt Burns analyst Jim Byrne commented, "We remain cautious on the shares given the company's all-in payout ratio, above-average debt levels and little to no growth outlook. We believe the dividend cut will fall short of investors' expectations and leaves very little flexibility if commodity prices stay in this range for 2015."
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Lightstream Resources Ltd. said it would cut its monthly dividend to $0.015 per share from $0.025 and aims to sell all or some of its Bakken assets and use the proceeds to pay down debt. It plans to cut capital spending in 2015 to $190- to $210-million.
"We believe the company's elevated debt levels and ongoing operational issues should continue to act as a headwind for the company in 2015," commented BMO Nesbitt Burns analyst Jim Byrne. "The company's dividend cut shouldn't come as a surprise to investors, but we believe the shares will continue to underperform those of its peers in today's commodity price environment."
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Summit Industrial Income REIT will acquire seven light industrial properties comprising approximately 546,400 square feet of GLA for a total purchase price of approximately $61.6-million.
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TORC Oil & Gas Ltd. said its 2015 capital budget would be $125-million and that its dividend was safe.
"TORC is well positioned to sustain its current dividend of $0.045 per share per month and continue to maintain financial flexibility," the company said in a statement. "To provide additional certainty around its 2015 guidance, TORC has undertaken an active commodity hedging program to further protect core capital spending requirements and dividend policy."
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Hedge fund investor Paul H. Stephens said he has acquired ownership and control over 997,500 common shares of Eurasian Minerals Inc., or 1.36 per cent of its outstanding common shares, at $0.86 per share.
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Boralex Inc. said it has made an offer to buy Enel Green Power's French business for $400-million (Canadian). The company said the deal, if completed, would make it the largest independent wind power producer in France and increase its total net installed capacity by 25 per cent. Boralex plans to finance this purchase with credit facilities and a $110-million public offering of subscription receipts.
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Trican Well Service Ltd. said its board has approved an initial 2015 capital budget of $39.2-million. "When combined with spending carryovers from previously approved capital budgets and expected capital maintenance spending throughout 2015, Trican expects capital spending to be between $90-million and $110-million during 2015."
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Lara Exploration Ltd. has signed a Letter of Intent with Goldplata Mining International Corporation to merge into a new company with a mandate to explore and develop world-class copper porphyry projects in Peru, Colombia and other South American countries.
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Raging River Exploration Inc. said it achieved its exit guidance of 12,750 boe/d during the first two weeks of December and expects fourth-quarter 2014 production of 12,000 boe/d, resulting in an increase to average 2014 production guidance to 10,600 boe/d from 10,500 boe/d.
"With the recent 50 per cent reduction in WTI that has occurred, the company is entering 2015 with a cautious outlook. During the first half of 2015, capital expenditures are anticipated to be approximately $70-million equating to a cashflow budget at $55/bbl WTI."
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Antrim Energy Inc. said its board of directors has determined that a takeover offer from Sound Oil plc is "not in the best interests of Antrim shareholders."
"After careful consideration, including a report and recommendation of a special committee of independent directors and in consultation with its financial and legal advisors, the board of directors has concluded that the intended offer does not meet the criteria established by the company as critical to significantly enhance shareholder value, nor does it recognize the value of Antrim's assets and prospects."
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Eagle Energy Trust said its unitholders approved a special resolution to amend the investment restrictions in Eagle's trust indenture that will let it invest in energy assets in Canada.
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Catalyst Paper said it would "indefinitely curtail the No. 9 paper machine, one of three machines at its Powell River operation. This decision is fully market-related as the company is facing a lack of orders and a declining market for the paper manufactured on paper machine No. 9, which was temporarily curtailed on October 27."
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VANC Pharmaceuticals Inc. said it received a Notice of Compliance from Heath Canada that allows it to market and sell seven generic molecules in Canada, which management estimates will bring in $90-million in revenues per year. This authorization boosts the company's generic portfolio to 30 molecules.
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Skylon All Asset Trust said it will redeem all of its outstanding units on December 31, 2014, and will request that these units be delisted from the Toronto Stock Exchange after the close of trading on Dec. 23.
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Orbite Aluminae Inc. has received confirmation from the Government of Quebec that its third installment of tax credits, which amount to $4-million, will be provided to the company on or close to Dec. 29. These credits are related to equipment purchased for manufacturing and processing during 2012 and 2014, and the funds will be used as security for convertible debentures issued in 2012.
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Knight Therapeutics Inc. said it will invest a total of $35-million (U.S.) in two funds that take positions in and provide early-stage financing to life science and biomedical firms. The company plans to invest an additional $20-million into life sciences funds on top of the $110-million it has already committed.
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High Yield & Mortgage Plus Trust said it will redeem all of its outstanding units on December 31, 2014, and will request that these units be delisted from the Toronto Stock Exchange after the close of trading on December 23.
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Toro Oil & Gas Ltd. said it will raise $15-million through a bought deal of 15-million common shares. The sale price of $1 per share comes at an 11 per cent discount to its closing price on Monday. The company also plans to sell 4.43-million flow-through shares to raise an additional $5-million. The proceeds will be used to fund ongoing activities and incur exploration expenses.
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TerraVest Capital Inc. said it has received approval to buy back approximately 905,000 common shares, roughly 5 per cent of shares outstanding, during the twelve months ending December 17, 2015.