Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Canaccord Genuity Group Inc. (CF-T) announced it has a share purchase agreement to acquire Thomas Miller Wealth Management Ltd. and an asset purchase agreement to acquire the private client investment management business of Thomas Miller Investment (Isle of Man) Limited. The deal is through Canaccord’s UK & Europe based wealth management business.
"TMWML is an integrated wealth manager headquartered in London and provides financial planning and investment management services to private clients, trusts, charities and corporates in the UK. Services are centred on a model of professionalism and trust, which has resulted in strong client loyalty and steady growth of inflows and assets over a five-year period," the company stated. It said client assets of TMWML and the private client investment management business in the Isle of Man total approximately £1.0 billion ($1.8-billion Canadian) and together generated revenue of approximately £8.4 million ($14.8 million Canadian) for the year ended December 31, 2018.
Canaccord said the acquisition is "welcomed by Thomas Miller Investment given the similarities in specialist investment and independent financial planning offerings and the dedication to best-in-class client services shared by the two businesses."
The deal includes £18.5 million ($31.8-million Canadian) payable on closing, with additional contingent consideration of up to £9.5 million ($16.8 million Canadian) payable over three years "following completion subject to achievement of performance targets related to revenue and client assets." In connection with the acquisition, an additional £17.0 million ($30-million) has been added to the company's existing bank loan facility, Cannacord stated.
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Knight Therapeutics Inc. (GUD-T) announced that it has initiated a lawsuit in District Court Center-Lod in Israel against Medison Biotech Ltd., its CEO Meir Jakobsohn, and Tzalir Holdings Ltd, Mr. Jakobsohn’s personal holding company. “Knight, on behalf of Knight shareholders, is seeking to prevent Mr. Jakobsohn from using Medison’s cash reserves to fund his personal activist campaign against Knight,” the company stated.
Knight alleges that a resolution introduced by Mr. Jakobsohn to fund up to US$1-million of expenses related to Mr. Jakobsohn’s activist campaign against Knight "is oppressive and unfairly prejudicial to Knight shareholders."
“Mounting an unnecessary and self-serving proxy fight against Knight is disappointing enough to our shareholders but filtering Medison’s already limited cash to Mr. Jakobsohn’s personal campaign is inexcusable. On behalf of all Knight shareholders, we will not allow Mr. Jakobsohn to use Medison’s limited cash to fund his campaign against Knight,” said Knight CEO Jonathan Ross Goodman.
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Information Services Corp. (ISV-T) reported revenue of $31-million in the fourth quarter, an increase of $7.4-million or 31.5 per cent compared to the same period a year earlier.
Net income of $3.2-million or 18 cents per share was down from net income of $18.8-million or $1.07 per share a year earlier.
"This decrease was mainly due to our gain on the sale of our ownership interest in Dye and Durham Corporation in the fourth quarter of 2017," the company stated.
Without the impact of the gain, net income, in the fourth quarter of 2017, would have been $5.4-million or 31 cents per share. "Higher depreciation and income taxes in the fourth quarter of 2018 as compared to 2017 account for the balance of the difference," the company stated.
Analysts were expecting revenue of $32-million and earnings of 20 cents in the latest quarter.
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DIRTT Environmental Solutions Ltd. (DRT-T) reported fourth-quarter revenue of $98.7-million up from $74.3-million a year ago. Net income was $3.5-million or 4 cents versus a loss of $7.3-million or 9 cents a year earlier.
Analysts were expecting revenue of $86.4-million and earnings of 4 cents.
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Atrium Mortgage Investment Corp. (AI-T) announced a $25-million financing. It has an agreement with a syndicate of underwriters which will purchase $25-million in convertible unsecured subordinated debentures of Atrium due March 31, 2025 at a price of $1,000 per debenture.
Atrium stated that it will use the net proceeds to repay convertible unsecured subordinated debentures due March 31, "and/or repay existing indebtedness under its revolving operating credit facility, which will then be available to be drawn, as required, for general corporate purposes, particularly funding future mortgage loan opportunities."
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Self-described “concerned shareholders” that own about 5 per cent of Guyana Goldfields Inc. (GUY-T) issued a statement Wednesday saying they have “engaged an independent, international consulting practice specializing in the resource sector to provide a third-party review and analysis of the resource model at Guyana Goldfields’ Aurora Gold Mine.”
The company has contracted RPA Ltd. to review the resource model and the board is set to announce a revised mining plan later this month, the release states. “However, given continuing concerns over the company’s seemingly misleading disclosures and general market skepticism, the concerned shareholders want to ensure that an independent review is conducted.”
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AgraFlora Organics International Inc. (AGRA-C) and Dixie Brands Inc. (DIXI.U-C) announced a partnership exploring legalized cannabis markets in the European Union. “AgraFlora and Dixie have identified various synergies that exist across product portfolios and distribution networks and are assessing opportunities to capture market share in the EU to the mutual benefit of both companies,” the companies stated.
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Mountain Province Diamonds Inc. (MPVD-T) said it sold 823,000 carats sold in the fourth quarter compared to 1,006,000 a year earlier, with total proceeds of $70.5-million compared to $77.2-million.
Its fourth-quarter net loss was $30.2-million or 15 cents per share versus a loss of $15.9-million or 10 cents a year earlier.
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Boyd Group Income Fund (BYD.UN-T) reported fourth-quarter sales of $495.1-milllion up from $414.6-million a year earlier. Same-store sales increased by 6.8 per cent year-over-year. Net earnings were $29.9-million or $1.19 per share versus $23.2-million or $1.19 per share a year earlier. Analysts were expecting earnings of 93 cents and revenue of $477.1-million.
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Photon Control Inc. (PHO-T) reported fourth-quarter revenue of $8.2-million, a decrease from $11-million reported in the prior year fourth quarter. “The results for the quarter reflect the continued sell-through of inventories held by customers following softer demand for semiconductor capital equipment,” the company stated.
Total comprehensive income for the quarter was $2.6-million or 3 cents per share compared to $2.6-million or 2 cents per share for the comparable period of 2017. Analysts were expecting earnings to come in at a penny per share and revenue of $8.6-million.