A customer walks out of a Canadian Western Bank branch in Calgary, Alberta on June 9, 2009.Reuters
Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Canadian Western Bank Group (CWB-T) reported revenues of $260.1-million for the third quarter ended July 31, up from $157.9-million a year ago. The bank reported adjusted cash earnings per share of 65 cents, down 3 per cent from a year ago, and lower than analysts' expectations of 67 cents per share.
"Strong year-over-year loan growth and ongoing stable credit quality contributed to common shareholders' net income from continuing operations, inclusive of $5-million of net losses on securities, of $51.2-million, down 3 per cent compared to the same quarter last year," the bank said.
The bank declared a dividend of 22 cents per common share.
"Excellent third quarter financial performance from banking, trust and wealth management operations demonstrates the stability and significant earnings power of CWB's core businesses," said Chris Fowler, CWB's president and CEO.
"We remain optimistic about CWB's long-term growth opportunities throughout our footprint as we continue to work proactively with our clients to address challenges related to the economic impact of low oil prices,"he said. "With almost one quarter of CWB's annual loan growth sourced outside of the four western provinces, we are realizing on our strategy to achieve selective geographic diversification. Looking ahead, we continue to actively pursue opportunities to enhance CWB's earnings power through redeployment of the significant capital realized through the divestitures closed this quarter. We are comfortable maintaining capital above our historical operating levels until we identify the appropriate growth opportunities for CWB shareholders."
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Toronto-based Newstrike Resources Ltd. (NR-X) said company founder John Pollock, 83, has retired as president and CEO of Newstrike effective Sept. 1. Director Scott Kelly has been appointed as his successor, the company said. Mr. Pollock will remain a director of the company.
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IFC, a member of the World Bank Group that focuses on emerging markets, has made an $18.4-million investment in Roxgold Inc. (ROG-X). IFC is acquiring 25.8-million units of the company. After this transaction IFC will hold an 8-per-cent stake in the company. The shares are being bought for investment purposes.
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Ottawa-based Majescor Resources Inc. (MJX-X) said it has signed a definitive agreement with Societe Miniere du Nord-Est, a subsidiary of the corporation, for the redemption of 740,210 common shares of SOMINE. The SOMINE shares are held by Majescor's wholly owned subsidiary SIMACT Alliance Copper-Gold Inc. After the redemption of the SOMINE shares, SACG will maintain 40,000 of the 263,274 remaining common shares of SOMINE, which represents about 15 per cent of the outstanding SOMINE shares.
In compensation for the redemption of the SOMINE shares, the corporation will receive a 2-per-cent royalty on each of the two Mining Exploitation Permits held by SOMINE. SOMINE will retain the right to purchase at any time the royalties for $1-million for 1 per cent per royalty. "Management has assessed that the redemption of its shares in SOMINE along with a decreased representation on the SOMINE board of directors has resulted in a loss of control of SOMINE for financial reporting purposes. Upon redemption control of SOMINE will be transferred to SOMINE's current minority shareholders which are arms-length from Majescor."
"As at Aug. 31, the Mining Exploitation Permits and related exploration and evaluation assets were fully impaired and carried a nil value of the consolidated statement of financial position. As a result of the loss of control of its subsidiary and deconsolidation, the corporation, will be able to remove $2.281-million of debt from its balance sheet," the company said.
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Toronto-based Dalradian Resources Inc. (DNA-T), a gold exploration and development company that is focused on advancing its Curraghinalt gold project in Northern Ireland, said it is downsizing and restructuring the company's management team and moving its corporate head office. These changes are expected to result in annual savings of nearly 20 per cent to the company's general and administrative costs, it said.
Effective immediately, Tim Warman, president, and Ruth Ives, vice-president of project management, have left Dalradian. Their responsibilities have been assumed by Eric Tremblay, Dalradian's chief operating officer and Patrick Anderson, chief executive officer. In addition, Keith McKay, chief financial officer, will retire during 2016 once a replacement has been found.
In addition, "Dalradian's corporate office has been downsized and moved to a location further away from the financial centre in Toronto, cutting the annual lease approximately in half," the company said.
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Rambler Metals and Mining plc, a Canadian copper and gold producer, (RAB-X) and Thundermin Resources Inc. (THR-X) have signed a nonbinding Letter of Intent under which Thundermin will amalgamate with a wholly-owned subsidiary of Rambler.
The Merger will be effected on the basis that the holders of the 116.6-million shares of Thundermin, will receive 7.14-million Rambler shares valued at about 1.3 cents per Thundermin share. Upon completion of the merger, the current Rambler shareholders will hold about 95.3 per cent of the shares of Rambler and the current Thundermin shareholders will hold about 4.7 per cent of the outstanding shares of Rambler.
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Montreal-based Imvescor Restaurant Group Inc. (IRG-T), a franchisor with brand including Pizza Delight, Mikes, Scores and Baton Rouge, with 228 locations in Eastern Canada, reported that net earnings increased by 39 per cent to $2.5-million for the third quarter ended July 26 compared with $1.8-million a year ago. Same restaurant sales rose 1.2 per cent, an improvement of 4.3 percentage points compared to a year ago. System sales growth was positive at 1 per cent, up from a decline of 3.7 per cent a year ago.
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