Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Cott Corp. (COT-N; BCB-T) announced that it’s evaluating strategic alternatives for its coffee, tea and extract solutions segment— include a sale — “to enhance shareholder value.”
The company said it's evaluating the alternatives "to transition Cott into a pure-play water solutions provider." Cott said it has hired a financial advisor as part of its strategic planning process "to assist it in evaluating whether there are alternatives available to Cott's coffee, tea and extract solutions operating segment that would either complement its strategy of organic growth or otherwise enhance shareholder value."
It said there can be no assurance that any particular alternative will be pursued.
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Exfo Inc. (EXFO-N; EXF-T) reported sales of US$73.6-million in its first quarter of fiscal 2020 ended Nov. 30 compared to US$69.2-million in the first quarter of 2019. Analysts were expecting revenue of US$72.8-million.
Its net loss totaled US$63,000 or nil per share compared to a loss of US$7.5-million or 14 US cents per share a year ago. Adjusted EBITDA amounted to US$7.5-million compared to US$2.7-million a year ago.
Canaccord Genuity analyst Robert Young increased his price target on the stock to US$4.75 from US$4 and maintained his "hold" recommendation after the earnings release. In a Jan. 8 note, Mr. Young said Exfo reported "soft bookings figures alongside a lacklustre guide for FQ2, which suggests the strength will be backend weighted."
Mr. Young added: “We prefer to remain on the sidelines for now until we see better visibility on the backend-loaded guidance. With no change to our ‘hold’ recommendation or target multiple of 7.0x NTM EV/EBITDA, we are increasing our price target to US$4.75 (from US$4.00), benefitting from period roll-forward.”
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Goodfood Market Corp. (FOOD-T) reported that its revenue for the first quarter ended Nov. 30 increased by 90 per cent to $56.3-million, compared to $29.6-million in the same period a year earlier — ahead of analysts’ expectations of $52.9-million.
Its net loss was $5.2 million, or 9 cents per share compared to a net loss of $4.9-million, or 9 cents per share a year ago.
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Knight Therapeutics Inc. (GUD-T) and Debiopharm , a swiss-based, global biopharmaceutical company, announced that they have an exclusive agreement that grants Knight the rights to commercialize Trelstar (triptorelin) in Canada. Knight said in a release that it expects to take over commercial activities from Debiopharm’s current partner Allergan and begin recording revenues in early 2020.
Previously, Trelstar was successfully launched and commercialized in Canada by Paladin Labs Inc. between 2006 to 2014, the company said.