Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Dorel Industries Inc. (DII.B-T; DII.A-T) announced it has an agreement to sell its remaining juvenile products manufacturing facility in Huangshi, China to Ningbo Xihe Children Products Co, Ltd. for gross proceeds of approximately US$4-million.
The sale follows the disposition by Dorel of its Zhongshan based manufacturing facility in March and is “part of the overall strategic direction of Dorel Juvenile that includes the co-development of innovative new products with a diverse supplier base,” the company stated.
“To reiterate what we stated earlier this year, our strategic direction for Juvenile is to bring a broader product line to market with greater speed and to decrease complexity and improve cash flow,” stated CEO Martin Schwartz. “Our strategic direction is also expected to reduce volatility in the direct costs of manufacturing due to variations in the Chinese currency and commodity prices. Now that we will no longer own facilities in China, we can better focus on co-development opportunities while simplifying the organization and freeing-up resources to concentrate on product innovation and branding across our various markets.”
As a result of the sale, Dorel expects to incur a non-cash loss of approximately US$13.5-million in the current fiscal year.
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Wyloo Metals Pty Ltd has raised its offer for nickel producer Noront Resources Ltd. (NOT-X) to $1.10 per share, which is 57 per cent higher than its prior bid and outmatching BHP Group’s 75 per-share offer.
The increase values Noront at $616.9 million.
Following months of competing bids, Wyloo had been discussing supporting the offer by BHP, the world’s largest listed miner.
“Following an extensive period of discussion, Wyloo Metals and BHP have been unable to agree terms upon which Wyloo Metals would support a BHP offer for Noront. As outlined above, the revised Wyloo offer will deliver a superior outcome for Noront shareholders in terms of optionality, price and deal certainty,” the company stated.
With a stake of 37.2 per cent in Noront, Wyloo said it doesn’t intend on supporting any other offer and that “a competing takeover bid will be unlikely to meet any minimum tender condition.”
For now, BHP’s offer has the support of the Noront board and requires minimum acceptances of 50%, it said.
- with files from Reuters
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Bellus Health Inc. (BLU-T) shares were up 35 per cent in pre-market trading on the Nasdaq after the biopharmaceutical company announced positive Phase 2 results for its chronic cough treatment.
The company said it intends to request an end of Phase 2 meeting with the U.S. Food and Drug Administration in the second quarter of next year and discuss the Phase 3 program which is expected to start later next year.
CEO Roberto Bellini said refractory chronic cough (RCC) is a “prevalent and growing condition that significantly impacts the quality of life of an estimated nine million patients in the United States and 9 million patients in Europe.”
There are no specific treatments approved for RCC patients “and physicians struggle to manage this condition that significantly impacts the quality of life of those afflicted,” Jaclyn Smith, professor of respiratory medicine at the University of Manchester in the United Kingdom and principal investigator of the Phase 2b Soothe trial stated in the release.
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The Net Zero Company Ltd., a specialized emissions reduction and offsetting company, announced it has received a strategic investment from streaming and royalty company Altius Minerals Corp. (ALS-T).
“As an early strategic investor and partner, Altius will provide strategic guidance as Net Zero expands its focus to include offset streaming in addition to its current emission reduction and offset credit acquisition services,” the company stated.
“Altius has been working for several years to develop a leading portfolio of natural resource royalties that are linked to and support several sustainability focus areas, which include the energy transition as it relates to power generation and transportation, cleaner steel-making and agricultural food sustainability,” stated Altius CEO Brian Dalton in the release.
He said the company has been a net-zero carbon emitter since 2019 through its purchases of voluntary offset credits relating to a variety of international carbon reduction and sequestration projects. “The team at Net Zero has impressed us with their insight into the rapid evolution of the voluntary carbon offset market and we look forward to sharing, learning and innovating together as this sector continues to find its place as a tool to help motivate a more sustainable world.”
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Secure Energy Services Inc. (SES-T) announced that it has been added to the S&P/TSX Composite Index, starting Monday, Dec. 20.
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Fire & Flower Holdings Corp. (FAF-T) announced a $30- million secured debt facility with Circle K Owner Alimentation Couche-Tard.
The company said the loan can be drawn down in three separate tranches of $10-million. The loan will accrue interest at a rate of 8 per cent payable quarterly, and matures on Oct. 1, 2022.
“Access to $30-million of non-dilutive debt financing is a strong show of support from our partner, Alimentation Couche-Tard. It also serves as a proof point on our alignment towards the future of cannabis retail,” stated CEO Trevor Fencott.
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Glass House Brands Inc. (GLAS.A.U-NEO), a cannabis company in the U.S., announced that it has entered into a senior secured term loan agreement with a U.S.-based private credit investment fund for up to US$100-million, with an initial draw of US$50-million.
The initial term loan has a variable interest rate currently set at 10 per cent annually, and will be no higher than 12 per cent annually, the company stated.
The company said the gross proceeds of the loan will be used to fund the phased retrofit of the company’s approximately 5.5 million square feet cultivation facility currently under renovation in Camarillo, Cali.
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