Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Roots Corp. (ROOT-T) says sales for the fourth quarter ended Feb. 3 increased 17 per cent to $130-million versus a year earlier and beat expectations of $126.9-million.
Net income was $20.3-million or 50 per cent share compared to $17.2-million or 41 cents a year earlier.
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Goodfood Market Corp. (FOOD-T) says it’s raising $10-million in a bought-deal financing. It has an agreement with underwriters to buy 4 million common shares at a price of $2.50 each.
“This financing will allow us to accelerate our growth in Western Canada following the greater than expected traction during our pre-launch. Additionally, we will launch new meal solutions for Canadians coast to coast, and unlock gross margin efficiencies from automation investments in our national fulfillment centers,” said Jonathan Ferrari, CEO, in a release.
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Pengrowth Energy Corp. (PGF-T; PGH-N) says that “after careful consideration and in contemplation of the previous delisting notices received by Pengrowth from the New York Stock Exchange” its board has decided not to take any further steps to implement a compliance plan, which would have included a reverse stock-split of its stock to preserve the NYSE listing.
Pengrowth said it will continue to be listed on the Toronto Stock Exchange and is expected to commence trading on the OTC Pink Market electronic quotation service in the United States, once delisting from the NYSE is complete.
It said the decision was made after the board decided the “disadvantages of maintaining its listing on the NYSE outweighed the benefits to the company and its shareholders.”
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BMTC Group Inc. (GBT-T) reported revenues of $245-million for the four-month period ended Jan. 31 compared to $197-million for the three-month period ended Dec. 31, 2016. The decrease in revenues for the comparable periods would have been 1 per cent, the company said.
Same-store revenues for the comparable periods would have decreased as well by 1 per cent, it said.
Net earnings for the four-month period ended Jan. 31 was $17.7-million compared to net earnings of $17.7-million for the three-month period ended Dec. 31 2016. “The contribution to net earnings for the month of January 2018 was $167,000, which had no impact on net earnings per share,” the company said.
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Endo International plc (ENDP-Q; ENDP-T) says its subsidiaries, Par Pharmaceutical, Inc. and Par Sterile Products, LLC, have received a notice letter advising that Eagle Pharmaceuticals, Inc. has submitted an abbreviated new drug application (ANDA) to the U.S. Food and Drug Administration (FDA) seeking approval to manufacture and market a generic version of its Vasostrict product in the U.S.
“The notice letter also contains “Paragraph IV” certifications alleging invalidity and non-infringement with respect to five patents which Endo has listed in the FDA’s Approved Drug Products with Therapeutic Equivalence Evaluations, commonly known as the Orange Book, for Vasostrict,” the company stated.
Endo said it intends to “vigorously protect its intellectual property,” which may include initiating a patent infringement lawsuit against Eagle.
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KP Tissue Inc. (KPT-T) says Kruger Products L.P. (KPLP) has agreed to issue and sell $125-million of senior unsecured notes.
KPLP intends to use the net proceeds of the financing to reduce the outstanding balance under its syndicated bank credit facility.
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Element Fleet Management Corp. (EFN-T) says it has completed the issuance of US$1-billion of rated term notes through Chesapeake Funding II LLC.
“The offering was Element’s first Chesapeake II issuance of the year and enjoyed strong demand that allowed the company to increase the offering size while achieving attractive pricing spreads that were consistent with the previous year’s offerings,” it stated. “As with prior transactions, participation in the issuance consisted of numerous repeat investors as well as investors new to the company.”
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Labrador Iron Ore Royalty Corp. (LIF-T) says United Steelworkers (USW) Local 5795/6731 in Labrador City rejected the latest offer proposed by Iron Ore Company of Canada (IOC) and USW negotiations teams.
The company reiterated that the strike at IOC is expected to “adversely affect the revenue of LIORC as its income is entirely dependent on the sale of iron ore products by IOC.”
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Altius Minerals Corp. (ALS-T) says it expects to report royalty revenue of about $15.7-million for the three month period ended March 31, a 17-per-cent increase compared to $13.4-million reported in the quarter ended April 30, 2017. It said previously updated royalty revenue guidance for the year remains at $64-to-$69 million. The company said its full results will be released on May 14.
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DHX Media (DHX.A-T; DHX.B-T; DHXM-Q) announced some management changes. It appointment Aaron Ames as chief operating officer, Josh Scherba has been promoted to President, and Anne Loi has been promoted to the newly created role of chief commercial officer. DHX Media co-founder Steven DeNure will be transitioning out of his role as president and COO within the next month, the company stated.