Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Labrador Iron Ore Royalty Corp. (LIF-T) issued a release after markets closed Wednesday in response to “certain questions raised by shareholders.”
The company's directors "wish to indicate that they have no intention of calling a special meeting on or before the upcoming AGM nor is a further special meeting currently contemplated," the release states. "The directors also want to clarify that they have no intention of making an acquisition without shareholder approval."
The statement came after Altius Minerals Corp. (ALS-T) issued a release earlier this week outlining “shareholder concerns” about LIORC. It held a meeting to request that the board of LIORC “pay out excess cash on its balance sheet and resume a commitment to its passive, flow-through business mandate.”
In its release on Wednesday, LIROC said its directors "take into account the interests of all shareholders in acting in the long-term best interests of the corporation and maximizing shareholder value. The corporation has generally paid out cash dividends to the maximum extent possible. However, there have been times where the directors have determined that it has been appropriate to draw down on its cash reserves and other times where it has been prudent to build cash reserves back up."
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Stingray Group Inc. (RAY.A-T; RAY.B-T) said third-quarter revenues increased 101.6 per cent to $70.8-million following the Newfoundland Capital Corporation Inc. acquisition,
Its net loss of $18.1-million or 26 cents per share compared to net income of $0.7 million or a penny per share last year "mainly attributable to the non-recurring expenses totaling $35.3-million related to the CRTC tangible benefits expense and acquisition costs related to the NCC transaction."
Adjusted income was $12.4-million or 18 cents versus income of $6-million or 11 cents a year earlier. Analysts were expecting revenue of $61.4-million and adjusted earnings of 23 cents in the latest quarter.
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Andrew Peller Limited (ADW.A-T; ADW.B-T) reported revenue of $103.2-million in its third quarter ended Dec. 31, similar to last year and above expectations of $102.4-million.
Net earnings in the third quarter were $5.4-million versus $14.4-million a year earlier. Adjusted net earnings were $7.8-million versus $12.4-million a year earlier.
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Héroux-Devtek Inc. (HRX-T) reported consolidated sales of $144.5-million in its third quarter ended Dec. 31, ahead of expectations of $129.9-million and an increase from $97-million last year.
Net income was $7.4-million or 20 cents per share, compared with $0.6 million or 2 cents per share, a year ago. Analysts were expecting earnings of 17 cents in the latest quarter.
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Mullen Group Ltd. (MTL-T) reported revenue of $333.3-million in its fourth quarter up from $296.1-million a year earlier. The company also reported a net loss of $81.1-million or 77 cents per share versus net income of $5.4-million or 5 cents a year earlier. Adjusted net income was $16.9-million or 16 cents versus $7.7-million or 5 cents per share.
Analysts were expecting revenue to come in at $328.5-million and adjusted earnings of 18 cents.
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Gluskin Sheff + Associates Inc. (GS-T) reported net income was $7.6-million in its second quarter ended Dec. 31 or 24 cents per share compared with $19.1-million or 61 cents a year earlier. Revenue was $28.4-million down from $57.6-million a year earlier. Analysts were expecting earnings to come in at 21 cents per share and revenue of $27.4-million.
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Auxly Cannabis Group Inc. (XLY-X) announced the termination of the definitive agreement dated March 3, 2018 between the company and FV Pharma Inc., a wholly-owned subsidiary of FSD Pharma Inc. (HUGE-C) governing the joint venture between the parties.
The joint venture was formed with the intention of developing a portion of FSD Pharma's cannabis cultivation facility located in Cobourg, Ont., Auxly stated.
“In the course of the company’s efforts to advance the JV facility development, it identified contractual breaches relating to FSD Pharma’s management and staffing obligations of the JV Facility, as well as significant concerns regarding certain aspects of the buildings’ infrastructure,” the company stated. "On January 17, 2019, the company provided notice to FSD Pharma of such breaches in the hopes that FSD Pharma would work with the company toward a resolution. To the company’s disappointment, FSD Pharma failed to remedy its breaches and instead purported to terminate the agreement... . "
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Diversified Royalty Corp. (DIV-T) announced preliminary results for Mr. Lube, AIR MILES and Sutton for the fourth quarter ended Dec. 31.
It said Mr. Lube Canada Limited Partnership generated same-store-sales-growth (SSSG) of 3 per cent compared to SSSG of 5.7 per cent for the same quarter last year. DIV expects to report that aggregate royalty income and management fees of $4.1-million were generated from Mr. Lube in the fourth quarter, an increase of $0.4 million from a year earlier.
It also said Alliance Data Systems Inc. announced that AIR MILES reward miles issued decreased by 4.7 per cent in the fourth quarter versus a year earlier. DIV expects to report that royalty income of $2.1-million was generated from the AIR MILES licenses in the fourth quarter, a decrease of $0.1 million from a year earlier.
DIV said it expects to report that royalty income and management fees of $1-million were generated from Sutton in the fourth quarter, representing a 2-per-cent increase over a year earlier.
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Vistra Energy (VST-N) is buying Crius Energy Trust (KWH.UN-T) for a cash consideration of $7.57 per trust unit, which is a 38-per-cent premium to Crius Energy’s unit price of $5.48 as of market close on Feb. 6.
“We are excited to have reached an agreement with Vistra, a leading integrated power company serving approximately 2.9 million customers with more than 40 GW of generation,” said Michael Fallquist, CEO of Crius Energy. “Partnered with Vistra, Crius Energy will be well-positioned to continue providing our customers and strategic partners with differentiated products and services."
Approximately US$328-million purchase price (assuming an exchange rate of US$0.76 for each C$1), which Vistra intends to fund with cash on hand, plus the assumption of Crius Energy net debt of approximately US$108-million, the company said.