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Tuesday's small-cap stocks to watch

An oil jack.

Larry MacDougal/The Canadian Press

Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.

Tricon Capital Group Inc. (TCN-T) is buying Silver Bay Realty Trust Corp. (SBY-N) in an all-cash transaction valued at $21.50 (U.S.) per share.

The transaction is valued at $1.4-billion, which includes the equity purchase price of about $820-million and about $600-million of Silver Bay debt that will be refinanced in conjunction with the acquisition.

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Silver Bay said the purchase price represents 24-per-cent premium to the 90-day trailing average price.

The Silver Bay board has unanimously approved the transaction.

"The proposed acquisition of Silver Bay is an incredibly exciting and transformational event for Tricon," stated CEO Gary Berman. "We believe that the transaction will result in significant operating and overhead synergies creating immediate value for our shareholders."

Separately, Tricon said it has an agreement with a syndicate of underwriters to issue $150-million (Canadian) of subscription receipts and an agreement with a syndicate of underwriters led by RBC Capital Markets to issue $150-million (U.S.) aggregate principal amount of extendible convertible unsecured subordinated debentures.

The net proceeds from the offerings will be used by Tricon to fund a portion of the purchase price of the Silver Bay acquisition.

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Chemtrade Logistics Income Fund (CHE.UN-T) reported fourth-quarter revenue from continuing operations of $251.7-million, a decrease of $25.7-million from 2015.

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The decrease was primarily due to lower selling prices and lower volumes of certain products, the company said.

Net earnings from continuing operations for the fourth quarter of 2016 were $6.4-million compared with a net loss of $82.6-million for the fourth quarter of 2015.

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Great Panther Silver Ltd. (GPL-N; GPR-T) reported a fourth-quarter net loss of $1.5 million (U.S.) or a penny per share.

That compared to a net loss of $3.7 million or 3 cents a year earlier.

Revenue decreased 5 per cent to $12.5-million.

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Painted Pony Petroleum Ltd. (PPY-T) reported fourth-quarter funds flow from operations of $26.5-million or 26 cents per share.

That compared to $2.6-million or 3 cents per share during the fourth quarter of 2015.

"The increase was primarily a result of increased production and decreased cash operating costs (royalties, operating expenses and transportation costs)," the company said.

Its net loss was $27.8-million or 28 cents per share compared to $2.6-million or 2 cents per share.

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Black Diamond Group Ltd. (BDI-T) reported preliminary fourth quarter results saying adjusted EBITDA will be "near the top end" of the original range of $8-million to $12-million.

"The preliminary estimate of adjusted EBITDA for [the fourth quarter] includes approximately $7-million from the non-recurring revenue stream and excludes a non-cash impairment charge of approximately $50-million on assets in the Energy Services and International business units," the company said. "This impairment does not affect the ongoing operations or cash flow generating capabilities of the business."

It said recurring rental revenue levels have increased "marginally" above the previous two quarters.

"Management believes this level of recurring revenue will continue into the first half of 2017."

The company said key macroeconomic events, "such as increases in oil price, increased drilling and completion activity, major pipeline approvals, significant capital spending announcements by major customers and the continued focus of both the U.S. and Canadian governments on key infrastructure projects are expected to support Black Diamond's growth in the second half of 2017 and in 2018."

It expects full-year 2017 EBITDA to be between $30-million to $40-million.

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Crombie Real Estate Investment Trust (CRR.UN-T) has an agreement with a syndicate of agents to sell, on a private placement basis, an additional $75-million in senior unsecured notes.

"The additional notes together with the outstanding Series B notes will bring the total principal amount of Series B notes outstanding to $175-million," the company said.

CEO Donald Clow said the offering will further strengthen the company's balance sheet.

"While the proceeds of this offering will be used primarily to repay bank indebtedness and maturing mortgages in the short term, this additional financial flexibility will allow us to fund future acquisitions, developments, and, if market conditions permit, the redemption of $60-million of 5 per cent Series D convertible debentures when they become eligible for early redemption in July, 2017."

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Opsens Inc. (OPS-X) has received final approval to list on the Toronto Stock Exchange, starting March 1.

"This is a significant achievement for Opsens," said CEO Louis Laflamme. "The TSX is Canada's most significant stock exchange and this move will provide us with greater visibility in the marketplace and access to a broader and more diverse range of international and institutional investors. This move will also help Opsens develop a stronger profile in the investment community, as our penetration grows, on a global scale, in the field of interventional cardiology."

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Sirius XM Canada Holdings Inc. (XSR-T) has extended date of its go-private transaction to April 30, "or such later date as may be agreed to by the parties in writing."

The company said it's waiting for approval from the Canadian Radio-television and Telecommunications Commission.

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Dream Hard Asset Alternatives Trust (DRA.UN-T) reported a net loss of $15.4-million in the quarter ended Dec. 31 compared to income of $4.3-million a year earlier.

Net operating income was $11.8-million compared to just under $14-million a year earlier.  Adjusted funds available for distribution were 10 cents per unit, up from 9 cents a year ago, the company said.

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Laurentian Bank of Canada (LB-T) reported first-quarter net income of $48.5-million or $1.30 per share compared with net income of $42.7-million or $1.36 per share for the same period last year.

​Adjusted net income was $52.7-million or $1.43 diluted per share for the first quarter of 2017, up ​from $43.7-million or $1.39 diluted per share for the same period in 2016.​

Total revenue increased by $18.4​-million or 8​ per cent​ to $241.6​-million for the first quarter of 2017 from $223.2​-million for the first quarter of 2016.

Analysts were expecting revenue of $237.5-million.

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About the Author
Contributor

Brenda Bouw is a freelance writer and editor based in Vancouver. She has more than 20 years of experience as a business reporter, including at The Globe and Mail, The Canadian Press, the Financial Post and was executive producer at BNN (formerly ROBTv). Brenda was also part of the Globe and Mail reporting team that won the 2010 National Newspaper Award for business journalism. More

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