Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
A late bidding war for Torstar Corp. (TS.B-T) is over, after NordStar Capital LP raised its offer by 17.5 per cent to $60-million Saturday and locked up key shareholder support.
“Although our initial offer was fully valued, this was not an opportunity we were going to let pass,” NordStar chief executive officer Jordan Bitove said in a statement. “We are humbled to have received the unique support of the Torstar board and their recognition that we are the right custodians for these unique assets.”
But the impending end of a process to sell the parent of the Liberal-leaning Toronto Star newspaper has triggered harsh words from one of Ontario’s most senior Liberal political voices, former finance minister Greg Sorbara, who was part of the losing bid.
“I believe the shareholders of Torstar have made a terrible mistake,” said Mr. Sorbara, who partnered with a late rival bid from Canadian Modern Media Holdings Inc. That company is led by technology entrepreneur Tyler Proud and backed by veteran Bay Street investment banker Neil Selfe and Mr. Proud’s brother Matthew Proud, CEO of legal technology provider Dye & Durham Corp. “I regret it and I think the people of Toronto and Canada will regret it eventually,” Mr. Sorbara said.
NordStar said Saturday it had increased its offer to 74 cents a share from its previous bid of 63 cents in May. Crucially, Torstar’s major shareholders committed to support the higher offer under hard lockup agreements. The five families behind Torstar’s voting trust that controls the voting shares and Fairfax Financial Corp., which owns 40 per cent of non-voting stock, had backed the earlier bid, but left open the option to support a higher bid.
The offer was sweetened days after The Globe and Mail revealed CMMH was preparing an unsolicited bid of 72 cents a share for the struggling but debt-free publishing company, which its principals believed was deeply undervalued given that it was sitting on $70-million in cash and valuable non-core assets.
- Jeffrey Jones and Sean Silcoff
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The Very Good Food Company Inc. (VERY-C) announced a $5.2-million bought-deal offering. The company said it has an agreement with Canaccord Genuity Corp., acting as lead underwriter and sole bookrunner, to purchase 4 million units at $1.30 each.
Each unit will include one common share and one-half of one common share purchase warrant exercisable to acquire one common share for 18 months at an exercise price of $2 per share.
The company said it intends to use the proceeds "to pursue an expansion to the United States, for continued investment in its product portfolio through research and development and potential accretive acquisitions within the plant-based sector, and for general corporate purposes."
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Intertape Polymer Group Inc. (ITP-T) estimates that its revenue is approximately $267-million for the three months ended June 30, compared to the outlook range of $235-million to $250-million provided in May. Analysts are expecting revenue of $242.2-million, according to S&P Capital IQ.
"With the out-performance of revenue, management also expects adjusted EBITDA to be greater than the top end of the outlook range of $34-million," it stated, adding that it's providing the preliminary estimate now "in an effort to provide greater clarity and transparency to investors and shareholders" instead of waiting until its expected Aug. 13 earnings release date.
“The COVID-19 outbreak has created a great deal of fluidity in the markets. End market demand was stronger than we anticipated in the back half of the second quarter as re-openings continued and de-stocking at distributors appeared to have dissipated,” said Greg Yull, CEO.
“Sales were negatively impacted by approximately 10 percent due to the impact of the virus during the second quarter compared to the same period in 2019. As we exited the second quarter and enter the third quarter, we are seeing positive signals and improved confidence in end-market demand.”
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Westhaven Gold Corp. (WHN-X) issued a release on Monday saying the halt in the trading of its common shares on July 9 was requested “due to delays in the receipt of eligibility for the new CUSIP [Committee on Uniform Securities Identification Procedures] related to the name change.”
It said the CUSIP has since been made eligible and the shares will resume trading today. Its symbol remains unchanged.
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Neptune Wellness Solutions Inc. (NEPT-T; NEPT-Q) announced agreements with "certain healthcare-focused institutional investors" for the sale of about 4.8 million shares at an offering price of US$2.65 per share for gross proceeds of approximately US$12.65-million. The stock closed at US$3.11 on Friday.
The company said it expects to use the net proceeds for working capital and other general corporate purposes.
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