Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Interfor Corp. (IFP-T) announced plans to temporarily reduce production across its operating platform in the B.C. interior in the fourth quarter “due to a combination of declining lumber prices and escalating log costs.”
The company said the curtailment is expected to reduce production in the region by approximately 20 per cent during the quarter and will be taken by way of reduced operating days and extended weekends/holiday breaks.
Interfor has three sawmills in the BC Interior, with total annual capacity of approximately 750 million board feet.
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EXFO Inc. (EXFO-Q; EXF-T) reported fourth-quarter sales of US$69.2-million compared to US$63-million in the fourth quarter of 2017. Its net loss amounted to US$4-million or 7 cents per share, compared to net earnings of US$800,000 or 2 cents last year. The company said the net loss in the fourth quarter of 2018 included net expenses totaling US$6.6-million.
Analysts were expecting a loss of 2 cents per share and for revenue to be US$71.7-million in the latest quarter.
EXFO announced in August a reorganization plan to "fast-track the integration of newly acquired monitoring and analytics solutions, while reducing the company's overall cost structure." The company said it should deliver annualized cost savings of US$10.5-million, once completed.
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Velan Inc. (VLN-T) reported second-quarter sales of US$91.4 million, an increase of US$14.9-million or 19.5 per cent from the prior year. “Sales were positively impacted by an increase in improved MRO business and in shipments of large project orders that were ordered in the prior fiscal year for the company’s North American operations,” the company stated. “This increase was partially offset by decreased shipments from the company’s Italian operations which [were] caused by the lower order bookings by the subsidiary in the prior year.”
Its net loss amounted to US$2.4-million or 11 cents per share compared to a loss of US$5.6-million 26 cents per share last year. “The improvement is primarily due to the higher volume of shipments that occurred in the quarter compared to last year,” the company stated.
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Emblem Corp. (EMC-X) says its Emblem Cannabis Corp. subsidiary has received approval to supply British Columbia and Saskatchewan with premium cannabis products under Emblem’s adult-use brand, Symbl.
“B.C. and Saskatchewan are important markets for Emblem’s continued domestic growth plans and we look forward to working with each province as a trusted partner to supply consumers with high-quality cannabis products that will meet their needs now and into the future,” said Nick Dean, CEO, Emblem Corp.
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Canadian media company Stingray Digital Group Inc. (RAY.A-T; RAY.B-T) is buying Benelux-based music provider DJ-Matic NV/BV, establishing a beachhead for an aggressive push into Europe to sell its commercial music services.
The roughly $20-million deal provides a jumping off point for Stingray’s commercial business in Europe, where executives say it plans to expand further in the years ahead. The business sells curated background music, video and signage to customers such as Telus Corp. and Sports Experts.
Adding DJ-Matic gives Stingray contracts covering some 10,000 bars, retail stores, hotels and other locations where DJ-Matic supplies music and multimedia. Its clients, such as Midi Station restaurant in Brussels, are located in Belgium, the Netherlands, Germany and Denmark.
These are not easy times for the retail industry in many corners of the world but companies that are maintaining their bricks-and-mortar stores are doubling down on their investments, said Stingray founder and chief executive Eric Boyko. That includes the audio and visual experience for customers.
“Everybody wants to be the next Apple store,” Mr. Boyko said. “They want to have the best stores, the best experience.”
- Nicolas Van Praet