Sean Mason | February 1, 2016 | SmallCapPower
Some speculators were willing to take a gamble on a possible management buyout Monday, while two acquisitions created a new TSX-listed miner. Here’s some small stocks making big moves on Monday, February 1, 2016 (as of 4 pm EST):
Amaya Inc. (TSX: AYA) shares surged 20% to $18 on Monday after the provider of technology-based products and services in the global gaming and interactive entertainment industries announced that it has received a non-binding indication from its Chairman and Chief Executive Officer, David Baazov, that he intends to make an all-cash proposal to acquire Amaya at a price currently estimated by Mr. Baazov to be C$21.00 per common share.
As well, shares of VMS Ventures Inc. (TSXV: VMS) slipped as much as 8% before ending unchanged at $0.065 as the explorer said it has agreed to be acquired by Royal Nickel Corporation in a cash-and-stock transaction valued at approximately C$11.4 million. VMS’ main asset is a 30% stake in the Reed Mine, a Manitoba copper mine that is 70% owned and operated by HudBay Minerals.
Royal Nickel Corporation (TSX: RNX), meanwhile, reported that it has agreed to acquire both VMS Ventures Inc. as well as privately-held Salt Lake Mining Pty, which owns a low-cost nickel and gold mine in Western Australia. Royal Nickel stock moved up 19% to $0.19 following the announcement.
In addition, Gold Standard Ventures Corp. (TSXV: GSV) shares added 7% at $0.96 as the gold junior said Goldcorp Inc. has agreed to purchase, by way of private placement, 16.1 million common shares of GSV at a price of C$1.00 per common share. As a result of this transaction Goldcorp will own approximately 9.9% of Gold Standard Ventures’ issued and outstanding shares on an undiluted basis.
Finally, Empire Industries Ltd. (TSXV: EIL) shares rose 29% to $0.09 after the manufacturer of specialized engineered products announced a proposal to spin-out into a new corporation its wholly-owned hydrovac business, including all of the tangible and intangible assets, employees and operations of Tornado Trucks.
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