Corus Entertainment's headquarters is shown in Toronto on Wednesday, January 13, 2016.The Canadian Press
Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Whitecap Resources Inc. (WCP-T) is cutting its dividend and slashing capital spending "in response to the severe decline in crude oil prices."
The company said its monthly dividend will be cut by 40 per cent to 3.75 cents per share (45 cents per share annually) from the current dividend level of 6.25 cents per share (75 cents per share annually) starting with the February payment on March 15.
"This will reduce Whitecap's cash requirements by approximately $91 million annually and at the same time continue to provide our shareholders with a meaningful dividend that is sustainable longer term," the company stated.
Whitecap is also reducing its 2016 capital budget by 53 per cent reduction to $70 million.
"The deterioration in crude oil prices has dramatically affected our project economics and we therefore believe that reducing our capital spending in this environment will maximize long-term value for our shareholders as we continue to focus on return on capital employed."
The stock closed at $6.39 on Tuesday. It's down 42 per cent over the past 12 months and has traded between $6.33 and $15.62 in the past 52 weeks.
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Savaria Corp. (SIS-T) reported preliminary fourth-quarter results late Tuesday, including record sales.
The Laval, Que.-based company, which designs and manufactures mobility equipment such as at-home elevators and stair lifts, said sales increased 24 per cent to $26.6 million in the quarter ended Dec. 31, compared to the same time last year.
It estimates earnings before interest, taxes, depreciation and amortization of 16 per cent of sales, which it says is an increase of about 40 per cent over the same period in 2014.
"We are very pleased with the strong finish to our fiscal year. In spite of various market conditions, people age every day and we make products that help them maintain freedom and independence," stated chief executive Marcel Bourassa.
The company said its full quarterly results will be released after markets close on March 10.
The stock closed at $4.94 on Tuesday, and has traded between $4.10 and $6.30 in the past 52 weeks. The stock is up 16 per cent over the past year.
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Nobilis Health Corp. (NHC-T, HLTH-N) says it has adjusted full year 2015 guidance and is projecting revenue to fall to between $220 million and $230 million and adjusted earnings before interest, taxes, depreciation and amortization to be between $37 million and $42 million.
The company said it's not changing its prior guidance for full year 2016, announced on Aug. 14, 2015. That's also when the company increased its 2015 guidance.
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Ur-Energy Inc. (URG-N, URE-T) says an updated Preliminary Economic Assessment (PEA) for its Lost Creek Property in Sweetwater County, Wyoming, confirms the increase in mineral resources previously announced last month.
"The primary purpose of this PEA is to confirm the updated mineral resource estimate prompted by 2015 drilling within Lost Creek's Mine Unit 2 and exploratory drilling at the Lost Creek and LC East Projects," the company said in a release. "The economic analyses within this PEA continue to demonstrate the potential economic viability of the project."
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Paramount Resources Ltd. (POU-T) says it looking to potentially sell some of its midstream assets in the Kaybob operating unit, including the Musreau Deep Cut Facility.
"There is no assurance that this process will result in a definitive sale agreement being entered into or a sale being consummated," the company stated.
It also provided an update on cost reduction measures, saying it has reduced its permanent workforce by approximately 15 per cent and eliminated most of the corporate consultant positions.
It said employee salaries have been reduced by five percent in 2016 and rates for contract work have been reduced by 10 to 15 per cent. It expects to cut general and administrative expenses by more than 15 percent in 2016, and labour and travel costs in its field operations by 12 to 15 per cent.
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Capstone Infrastructure Corp. (CSE-T) says it has a friendly agreement to be taken over by a U.K.-based investment fund for $480-million.
The Toronto-based company said iCON is offering $4.90 cash for each Capstone share, which is 44 per cent above the stock's closing price on Tuesday.
The offer price is also 61 per cent above Capstone's stock price prior to Nov. 23, when the company announcement a strategic review of its options.
Capstone's board is supporting the offer, which requires approval from two-thirds of shareholders who vote at a meeting to be held mid-March.
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Corus Entertainment Inc. (CJR.B-T) is seeking to raise about $260-million in a public offering and private placement, a week after buying Shaw Media Inc.
"Corus will use the net proceeds from the offering to partially fund the acquisition," the company stated, then pointed investors to the preliminary short form prospectus for more details.
Corus also said the Shaw family, the company's controlling shareholder, will buy about $32-million of subscription receipts on private placement basis at the same price as the public offering.
"Corus anticipates that the total size of the public offering (before the exercise of any over-allotment option) combined with the concurrent private placement will be approximately $260-million."
It said the public offering will be conducted through a syndicate of underwriters to be led by RBC Capital Markets and TD Securities. The current private placement will be conducted on a non-brokered basis.
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Kinaxis (KXS-T) said Ixia, a provider of network testing and security solutions, has selected its cloud-based RapidResponse technology to act as Ixia's supply chain planning system of record.
"Ixia will utilize the RapidResponse Demand Planning, Supply Action Management, and Inventory Management applications as key technology components to make tradeoff decisions rapidly and effectively, while staying in line with their key performance metrics," Ottawa-based Kinaxis stated.