Small
stocks making big moves on Monday, April 13, 2015 (as of 4 pm EST), as
reported by Sean Mason, SmallCapPower.com
Cipher Pharmaceuticals Inc. (TSX:
CPH) shares shot up 23% to $14.98 on Monday after the specialty
pharmaceutical dermatology company said it has acquired INNOCUTIS Holdings LLC,
a privately-held specialty dermatology company, for US$45.5 million in cash. INNOCUTIS
recorded approximately US$10.1 million in net product revenue in 2014 and Cipher
said the acquisition marks its commercial entry to the U.S. market.
As well,
shares of NioCorp Developments Ltd. (TSX:
NB) slipped 23% to $1.17 as the resource project developer announced results
of its Preliminary Economic Assessment (PEA) study for the Elk Creek Niobium
project in Nebraska. Highlights included a Pre-tax NPV of US$821 million with
an IRR of 15.7%, as well as total upfront capital costs of US$919 million,
which includes contingency and owner’s costs.
Alamos Gold Inc. (TSX:
AGI) and AuRico Gold Inc. (TSX:
AUQ), meanwhile, reported that the two companies will merge in a
transaction valued at approximately US$1.5 billion. Alamos shareholders will
receive 1 share of the newly merged company for each Alamos share held, while AuRico
shareholders will receive 0.5046 of a share for each AuRico share held. In
addition a new company, to be named AuRico Metals Inc., will be created to hold
AuRico’s Kemess project, a 1.5% net smelter return royalty on the
Young-Davidson mine, AuRico’s Fosterville and Stawell royalties, and will be
capitalized with US$20 million of cash. About 94.9% of the new spinoff company will
be distributed equally to former shareholders of both Alamos Gold and AuRico
Gold. Alamos Gold shares moved up 7% to $7.90 following the announcement, while
AuRico Gold shares also gained 8% to $4.09.
