Metals Update 05/07/2021

Casa closes $223,124 first tranche of placement

Casa Minerals Inc. has closed an initial tranche of $223,124 of its $500,000 non-brokered private placement announced by news release dated June 22, 2021.

The initial tranche is composed of 1,014,200 units of the company at a price of 22 cents per unit. Each unit shall consist of one common share and one share purchase warrants. Each warrant shall be exercisable for a period of 12 months at 30 cents per share. The warrants shall be subject to an acceleration clause. If the closing price of the shares on the TSX Venture Exchange is greater than 45 cents for 10 consecutive trading days, then the company may, at its sole option, elect to provide notice to the holders of the warrants, which acceleration notice may be provided by news release, that the warrants will expire at 4 p.m. Vancouver time on the date that is 30 days from the date of the acceleration notice. In such instance, all warrants that are not exercised prior to the accelerated expiry date will expire on the accelerated expiry date. All securities issued in conjunction with the initial tranche closing have a hold period of four months and one day.

The proceeds of the private placements will be used toward financing exploration programs on the Pitman and Arsenault projects in British Columbia, Canada, as well as exploration at the Congress mine, Arizona, United States, and a portion will be used for general and administrative expenses.

Closing of this private placement is subject to final approval by the TSX Venture Exchange.

The company would like to clarify that in connection with the previous financing, as announced on May 20, 2021, additional 96,000 non-transferable finders’ warrants were issued for a total of 868,200. The finders’ warrants have the same terms as the warrants.

Fairfax expects $1.4-million (U.S.) gain from Digit

Go Digit General Insurance Ltd., an Indian digital general insurance subsidiary of Fairfax Financial Holdings Ltd.’s 49-per-cent-owned Go Digit Infoworks Services Pvt. Ltd., has entered into agreements with Faering Capital, Sequoia Capital India, IIFL Alternate Asset Managers and certain other parties to raise approximately $200-million (14.9 billion Indian rupees) for new equity shares, valuing Digit Insurance at approximately $3.5-billion (259.5 billion Indian rupees). The transactions are subject to customary closing conditions, including regulatory approval, and are expected to close in the third quarter of 2021. (Note: All dollar amounts in this press release are expressed in U.S. dollars.)

When the new equity issuances by Digit Insurance close, the increased valuation of Digit Insurance will result in Fairfax recording a net unrealized gain on investments of approximately $1.4-billion on its investment in Digit compulsorily convertible preference shares (an increase of approximately $47 in book value per basic share). In addition, at that time, the pretax excess of fair value over carrying value of Fairfax’s equity-accounted interest in Digit will increase by approximately $400-million (an increase of a further approximately $14 in book value per basic share), which will not be reflected in Fairfax’s consolidated net earnings or in the calculation of book value per share until the Indian government gives final approval of its announced intention to increase foreign ownership limits in the insurance sector from 49.0 per cent to 74.0 per cent and Fairfax obtains regulatory approval specific to its holdings in Digit.

Fairfax’s 49.0-per-cent equity interest in Digit comprises a 45.3-per-cent interest in Digit common shares and a 3.7-per-cent interest through Digit compulsorily convertible preference shares that are considered in-substance equity. Foreign direct ownership in the insurance sector in India is currently limited to 49.0 per cent and, as a result, the remainder of Fairfax’s investment in Digit compulsorily convertible preference shares is recorded at fair value through profit.

Since Digit was founded in 2017, Fairfax has invested approximately $154-million in the company. That investment is currently carried on Fairfax’s balance sheet at $532-million and, when the new equity issuances by Digit Insurance close and the aforementioned Indian government and regulatory approvals are given, will have an aggregate market value of approximately $2.3-billion. This will result in a gain of approximately $1.8-billion, resulting in an increase in the book value of Fairfax of approximately $61 per basic share.

Fairfax is a holding company that, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and the associated investment management.

Vitalhub acquires Alamac for 1.85 million pounds

Vitalhub Corp. has acquired Alamac Ltd. This is Vitalhub’s 11th acquisition completed since 2017 and marks continued expansion into the growing patient flow and operational visibility market.

When asked to comment on the acquisition, Vitalhub chief executive officer Dan Matlow said: “We are delighted to have acquired Alamac, as we continue to progress and execute on our growth strategy, which includes both M&A and organic growth. Alamac has extensive experience building and implementing robust patient flow business intelligence systems across the NHS, with offerings that are highly synergistic with our transforming systems solutions. We believe our existing install base and prospective customers will see immense value through the addition of Alamac’s offering, and through the combination of the two solutions. We look forward to the development of a joint offering in short order, as we continue to enrich our technology platform toward offering best-in-class solutions to address health system needs.”

Founded in 2010, Alamac, a United Kingdom-based company, provides technological and advisory solutions that assist health care organizations across the NHS diagnose and monitor performance, on a daily basis, in order to improve outcomes and bring health and social care teams together. Through the development of proprietary enabling technology solutions, Alamac provides streamlined data analytics to health care providers, enabling health systems and hospital teams with actionable intelligence and insights.

Alamac’s platform comprises four key products: patient safety, using metrics to ensure the suitability and adequacy of patient care; patient plan, providing diagnostics to increase the sustainability and performance of services; patient outcomes, enabling the refinement of patient care programs through the measurement of treatment results; and patient flow, enabling transparency across emergency care services to maximize resource utilization and capacity balancing. These solutions serve health systems to improve operational performance and governance, elevate patient pathway and quality of care through a redesign of services, and enhance reporting and performance governance.

Vitalhub has acquired Alamac, via its wholly owned subsidiary The Oakgroup (UK) Ltd., for a total cash purchase price of 1.85 million pounds sterling, subject to any postclosing working capital adjustments.

  • Alamac has a recurring contracted revenue base of 757,520 pounds sterling ($1,298,238) which represents almost all of its revenue and adds to Vitalhub’s growing annualized recurring revenue (ARR) base.
  • Vitalhub estimates Alamac’s unaudited EBITDA (earnings before interest, taxes, depreciation and amortization) exceeds 20 per cent of gross recurring revenues.
  • Vitalhub’s pro forma ARR, including the recently announced acquisitions of selected assets of Jayex Healthcare Ltd. and S12 Solutions in Q2 2021, was $20,539,466 in Q1 2021.

Issuance of stock options

In addition to the acquisition, Vitalhub has granted incentive stock options as compensation to certain of its employees, including certain employees joining Vitalhub as part of the Alamac acquisition.

Options to purchase up to 245,000 common shares of the company have been granted at an exercise price of $3.15 per share, as per the terms of the company’s option plan.