Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
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Small-cap stocks to watch is taking a break after today and will return on Monday, July 16.
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Dorel Industries Inc. (DII.B-T; DII.A-T) says its Dorel Sports segment has sold the SUGOI and Sombrio brands to Louis Garneau Sports Inc., “divesting its performance apparel line of business to focus on its core strategic businesses of bikes, parts and accessories and electric ride-ons.”
“Despite the strong brands and products in SUGOI and Sombrio, apparel is not a strategic priority and has been a drain on Dorel’s financials,” stated CEO Martin Schwartz in a release. “It is in the best interests of our shareholders for us to focus on our core businesses.”
Dorel said it expects to record an estimated US$11-million of restructuring and other costs during the second quarter ending June 30, “mainly related to non-cash charges associated with the write-down of trademarks and non-cash inventory markdowns.”
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Ballard Power Systems (BLDP-Q; BLDP-T) says it signed a memorandum of understanding with ABB to collaborate on the development of megawatt-scale proton exchange membrane (PEM) fuel cell power systems for the marine market, with an initial focus on the cruise ship segment.
“This MOU is a significant next step in our ongoing relationship with ABB, the innovative market leader in marine solutions,” stated Ballard chief commercial officer Rob Campbell in a release.
The company said the agreement will include “joint market development activities, systems design and development work, as well as systems testing and validation activities.”
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Clairvest Group Inc. (CVG-T), a private equity management firm, reported net income of $18.6-million or $1.23 per share in the fourth quarter compared to net income of $17.3-million or $1.14 per share a year earlier.
Clairvest says its book value was $667.3-million or $44.01 per share as at March 31, compared with $550.2-million or $36.21 per share as at March 31, 2017.
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NovaGold Resources Inc. (NG-N; NG-T) says its loss from operations increased to US$8.2-million in the second quarter from US$7.6-million a year earlier, “due to higher project expenses at Donlin Gold and Galore Creek and higher general and administrative expense.”
Its net loss increased to US$9.6-million or 3 cents per share compared to US$8.5-million or 3 cents per share a year earlier.
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Mountain Province Diamonds Inc. (MPVD-T; MPVD-Q) reported proceeds of US$30.3 million for its fifth diamond tender sale of 2018, which it said set another new high for its tender results to date. “This tender also delivered the sale of Mountain Province’s highest value individual diamond, as well as the highest attributable value per tonne to date,” the company stated.
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Energy Fuels Inc. (UUUU-N; EFR-T), a producer of uranium and vanadium in the U.S., said it recently strengthened its cash position and currently has sufficient existing cash on hand to give it the ability to retire all or a portion of its existing long-term debt. The company said it’s also able to “further advance its long-term and sustainable vanadium production profile.”
The company said its has experienced “relative strength in its stock price and increased trading volume,” since being added to the Russell 3000 Index on May 11 and raised $16-million through the at-the-market program. “The company is evaluating the potential of using this cash to finance vanadium-related activities, particularly with the spot price of vanadium currently above US$17 per pound, repay existing long-term debt, and/or maintain a strengthened working capital position,” it stated in a release.
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Baylin Technologies Inc. (BYL-T) says it’s buying Alga Microwave Inc. for $27-million, including $21-million in cash, $4-million in Baylin shares and $2-million in “deferred consideration.” It also has a related agreement to purchase Alga’s operational facilities in Kirkland, Que.
In connection with the acquisition, Baylin says it’s raising $35-million in a bought-deal financing. The offering includes 6.5 million subscription receipts at a price of $3.10 each for gross proceeds of $20-million and $15-million in extendible convertible unsecured debentures at a price of $1,000 each.
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The Hydropothecary Corp. (HEXO-T) says its third-quarter revenue of $1.2-million, which was relatively flat compared to the same quarter a year earlier. Its net loss was $2-million or a penny per share versus a loss of $11.8-million or 17 cents a year ago.
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Namaste Technologies Inc. (N-X) says it plans to buy back up to 10 per cent of the company’s shares. “Namaste’s board of directors believes that, from time to time, the market price of the common shares does not adequately reflect the company’s underlying value and future prospects and that, at such times, the purchase of the common shares represents an appropriate use of the company’s financial resources and will enhance shareholder value,” the company said.
It also appointed Kenneth Ngo as its chief financial officer.
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Blackline Safety Corp. (BLN-X) reported second-quarter revenue of $3.8-million, a 49-per-cent increase over the same quarter last year.
Its net loss was $2.9-million or 7 cents per share versus a loss of $1.7-million or 6 cents a year ago. The company said its net loss excluding stock-based compensation was $1.7-million versus a loss of $1.6-million a year earlier.
Analysts were expecting a loss of 5 cents and revenue of $3.6-million in the latest quarter.
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Nevada Copper Corp. (NCU-T) plans to raise about $80-million in a public offering of its common shares. It has an agreement with a syndicate of underwriters to sell its shares for 60 cents each.
Nevada Copper said it intends to use the proceeds “to continue advancing towards construction of its underground project at its 100%-owned, fully-permitted Pumpkin Hollow Project in Nevada.”
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IPL Plastics Inc. (IPLP-T) begins trading on the Toronto Stock exchange today. The company said it raised $178.2-million in an IPO priced at $13.50 per common share.
“Providing our existing shareholder base with access to a major regulated market has long been an important ambition for IPLP and it is especially gratifying to have finally realized that aim,” said Alan Walsh, CEO of IPLP in a release.