Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
CannTrust Holdings Inc. (TRST-T; CTST-N) announced on Friday its auditor KPMG LLP has withdrawn its report on the company’s financial statements for full-year 2018 and its interim report for the three month period ended March 31. KPMG’s decision was prompted after CannTrust cautioned against relying on its financial statements and as new information from an investigation by a special committee was shared with the auditor. The company also said KPMG remains its independent auditor.
-Reuters
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SOL Global Investments Corp. (SOL-C) announced a proposed change of business of SOL Global from an international cannabis investment company to a U.S. multi-state cannabis operator under the Life Sciences category of the Canadian Securities Exchange. “The MSO’s initial operations will include assets in three of the top 10 cannabis markets by revenue in the U.S.,” the company stated.
It also plans to change its name from SOL Global Investments Corp. to Bluma Wellness Inc., named after an ancient Hebrew word which means to flower, bloom or blossom.
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TransAlta Corp. (TA-T; TAC-N) reported second-quarter net earnings attributable to common shareholders was nil compared to a net loss of $105-million last year, “mainly due to the impact of the Alberta tax rate reduction, improved margins at Canadian coal and strong performance in the energy marketing segment.”
Revenue was $497-million up from $446-million a year ago and ahead of expectations of $481.4-million. EBITDA $215-million a decline of $33-million compared to 2018 and in line with guidance expectations. Analysts were expecting EBITDA of $210.1-million.
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GMP Capital Inc. (GMP-T) reported revenue of $26.5-million in the second quarter a decrease from $37.5-million a year earlier. Its net loss of $3.8-million or 7 cents per share is a decrease from net income of $1.5-million or a penny per share a year ago. On an adjusted basis, the net loss from continuing operations was $600,000 compared with net income of $5.0 million in the second quarter 2018.
“The results for this quarter were impacted by the 35 per cent industry-wide decline in common equity underwriting transactions compared to the prior period, largely in the cannabis, blockchain and mining sectors, an uncertain market environment as well as costs incurred in connection with the sale of the Capital Markets business to Stifel,” said Harris Fricker, CEO of the Capital Markets business.
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New Gold Inc. (NGD-T; NGD-N) announced a $150-million bought-deal financing. It has an agreement with a syndicate of underwriters led by BMO Capital Markets, under which the underwriters have agreed to buy on a bought deal basis 93,750,000 common shares at $1.60 each. The shares closed at $1.72 on Thursday. The net proceeds will be used “to enhance financial flexibility, strengthen the balance sheet, including debt repayment, and general corporate purposes,” the company stated.
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Morguard North American Residential Real Estate Investment Trust (MRG.UN-T) announced a $100-million offering of trust units. The REIT said it has an agreement with a syndicate of underwriters, co-led by RBC Capital Markets and TD Securities Inc., to purchase 5,076,200 trust units at a price of $19.75 each.
As part of the Transaction, Morguard Corp. (MRC-T) has agreed to purchase approximately $25-million of the units in the offering. Morguard Corp. currently holds an approximate 46.9-per-cent interest in the REIT through ownership of Units and Class B LP Units. The REIT said it intends to use the net proceeds to fund future acquisitions, for debt repayment and for general business purposes.
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Héroux-Devtek Inc. (HRX-T) reported sales grew 67.2 per cent to $143.4-million in the first quarter ended June 30, up from $85.8-million in the same period last year and ahead of expectations of $129.7-million. Net income was $6.4-million or 18 cents per share, up from $3.6-million or 10 cents last year. Excluding non-recurring items net of taxes, adjusted net income reached $7-million or 19 cents per share, up from $3.8-million or 10 cents per share last year. Analysts were expecting earnings of 18 cents per share.
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AutoCanada Inc. (ACQ-T) reported second-revenue was $945.8-million, an increase of 7.4 per cent versus a year ago. Its net loss was $4.5-million or 16 cents per share versus a loss of $39.4-million or $1.44 per share a year earlier. Analysts were expecting revenue of $910.8-million.
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Jamieson Wellness Inc. (JWEL-T) reported second-quarter revenue increased 8.6 per cent to $80.6-million versus a year ago which was above expectations of $78.7-million. Net Income was $8.2-million or 21 cents per share compared to $4.8-million or 12 cents a year ago. Analysts were expecting earnings of 18 cents.
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NorthWest Healthcare Properties Real Estate Investment Trust (NWH.UN-T) said its revenue increased 7 per cent in the second quarter to $91.4 million from $85.2 million a year ago, “primarily driven by net acquisition activity.”
Net income increased to $83.7-million from $39.1-million a year ago, "due to current quarter fair value gains on investment properties," the REIT stated. Adjusted funds from operations came in at 22 cents per unit versus expectations of 20 cents.
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Clarke Inc. (CKI-T) is proposing to buy Holloway Lodging Corp. (HLC-T) shares that it does not currently own. The proposal sees Holloway shareholders receive 0.65 of a common share of Clarke for each Holloway share. Based on the closing share prices of each of Clarke and Holloway on Aug. 8, the day prior to the announcement, this share exchange ratio implies an acquisition price per Holloway Share of $8.46 and a premium of 14 per cent, the company stated.
The acquisition is valued at approximately $132-million on an equity value basis and $265-million on an enterprise value basis. Clarke currently owns 51 per cent of the Holloway shares. Clarke said it has received expressions of support for the acquisition from holders of an additional 32 per cent of the Holloway shares.
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Sleep Country Canada Inc. (ZZZ-T) reported second-quarter results that beat expectations. The company said its revenue increased by 15.9 per cent to $166.6-million from $143.7-million a year earlier. Same-store sales increased by 1.9 per cent, the company stated.
Net income was $12.2-million or 33 cents per share, which was consistent with the year-ago period. Analysts were expecting revenue of $161-million and earnings of 31 cents.
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Morneau Shepell Inc. (MSI-T) reported second-quarter revenue of $212.7-million, an increase of 24.2 per cent from the same period last year. The company said the increase was “primarily due to revenue increases from the LifeWorks acquisition and significant growth in our pension and benefits administrative solutions business.” Analysts were expecting revenue of $210.8-million.
Profit came in at $6.3-million or 10 cents per share, compared to a profit of $13.7-million or 25 cents per share a year ago. "The decline in profit for the period is directly attributable to LifeWorks integration costs and amortization charges," the company stated.
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Northern Dynasty Minerals Ltd. (NDM-T) announced after markets closed on Thursday a US$8-million bought-deal financing. It has an agreement with Cantor Fitzgerald Canada Corp, as lead underwriter and sole book-runner on behalf of itself and a syndicate of underwriters, to purchase 10.7 million common shares at 75 cents US each. The stock closed at 85.75 cents on Thursday.
The company said the financing will enable it to move forward with its Pebble Project in Alaska. Meanwhile, Northern Dynasty stated that it "remains in discussion with potential partners to secure long-term funding to finalize permitting and initiate project development."
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Hudbay Minerals Inc. (HBM-T; HBM-N) reported second-quarter revenue of US$329.4-million, down from US$371.3-million a year earlier and ahead of expectations of US$310.6-million. Its loss came in at US$54.1-million or 21 cents US per share versus a profit of US$24.7-million or 9 cents US a year earlier. Analysts were expecting a profit of a penny per share.
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Interfor Corp. (IFP-T) recorded a net loss of $11.2-million or 17 cents per share in the second quarter compared to net earnings of $63.7-million or 91 cents per share a year earlier. Its adjusted net loss was $16.2-million or 24 cents per share compared to adjusted net earnings of $68.9-million or 98 cents per share a year ago.
Sales came in at $481.3-million down from $619.9-million a year earlier. Analysts were expecting revenue of $481.1-million and an adjusted loss of 29 cents per share.
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GDI Integrated Facility Services Inc. (GDI-T) reported second-quarter revenue of $312.8-million, which was in line with expectations and an increase of 17.2 per cent over the second quarter of 2018.
Net income was $2.1-million or 10 cents per share compared to net income of $3.4-million or 16 cents per share a year earlier. “Net income was negatively impacted by $1.9-million, net of tax, or $0.09 per share, by the remeasurement of cash-settled share-based compensation due to the increase of GDI’s stock price in the second quarter of 2019,” the company stated.