Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Air Canada (AC-T) announced “an exclusive agreement” with Transat A.T. Inc. (TRZ-T) to buy Transat for $13 per share. The proposed transaction is valued at approximately $520-million and “will create a Montreal-based global travel services company in leisure, tourism and travel distribution operating across Canada and internationally,” the company stated. Air Canada said it has all the necessary funding required to complete the transaction. Transat shares closed at $10.58 on Wednesday.
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ATS Automation Tooling Systems Inc. (ATA-T) reported revenues increased 17 per cent to $348.6-million in the quarter ended March 31 versus $298.4-million a year ago. Net income was $18.2-million or 20 cents per share versus net income of $15-million or 16 cents per share a year earlier. Analysts were expecting earnings to come in at 18 cents per share and revenue of $308-million in the latest quarter.
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CRH Medical Corp. (CRH-T; CRHM-N) announced it has acquired a 55-per-cent interest in South Metro Anesthesia Associates, LLC, a gastroenterology anesthesia practice in Georgia. “South Metro is the company’s fourth acquisition in the state of Georgia and provides anesthesia services to two GI ambulatory surgery centers,” the company stated.
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The Supreme Cannabis Company, Inc. (FIRE-T) announced it’s buying Blissco Cannabis Corp. (BLIS-C) shares it doesn’t already own in an all-stock transaction valued at about $48-million.
Under the terms of the agreement, each Blissco share will be exchanged for 0.24 of a common share of Supreme Cannabis. “Shareholders of both companies will benefit from the combined companies’ expanded product offerings, infrastructure and consumer reach,” the companies stated. “Through the acquisition, Blissco will join Supreme Cannabis’ exclusive portfolio of premium brands and operate as Supreme Cannabis’ health and wellness business.”
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Savaria Corp. (SIS-T) reported first-quarter revenue of $87.5-million, up $30.9-million or 54.6 per cent compared to the same quarter last year. Net earnings of $4.1-million or 9 cents per share compared to $3.8-million or 9 cents a year earlier. Analysts were expecting earnings of 8 cents and revenue to come in at $85.3-million.
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A&W Revenue Royalties Income Fund (AW.UN-T) and A&W Food Services of Canada Inc. announced an agreement with a syndicate of underwriters led by CIBC Capital Markets to complete a secondary offering of 1,125,000 trust units at a price of $44.55 each to raise more than $50-million. The units closed at $46.51 on Wednesday.
The fund said it will not receive any proceeds from the offering and Food Services will distribute the net proceeds of the offering to its "long-standing shareholders."
On Thursday morning, the fund announced an increase to the offering to 1,460,000 trust units on a bought deal basis at a price of $44.55 each to raise $65-million, “due to strong demand.”
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Birchcliff Energy Ltd. (BIR-T) reported net income to common shareholders of $15.8-million or 6 cents per share in the first quarter, up from net income of $14.1-million or 5 cents a year earlier. Revenue came in at $178.4-million up from $159.5-million a year ago. Analysts were expecting revenue of $152.4-million. Adjusted funds flow was $116.6-million, or 44 cents per share compared to $83.7-million and 31 cents a year ago.
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Boardwalk Real Estate Investment Trust (BEI.UN-T) reported rental revenue of $111.9-million, which was in line with expectations and up from $107.1-million a year ago. The REIT reported a loss of $7.7-million versus a profit of $69.3-million a year ago. Adjusted funds from operations came in at $22.3-million or 44 cents versus $18.5-million or 36 cents a year ago.