In recent days, the investment-banking arms of both Bank of Montreal and Royal Bank of Canada, hired by Home Capital to explore its options, have been contacting some mid-sized financial institutions to gauge their interest in a possible sale, according to sources.Sean Kilpatrick/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.
Home Capital Group Inc. (HCG-T) says its Home Trust subsidiary has entered into an arrangement with an independent, unnamed third party that "wishes to purchase funded mortgages or accept mortgage commitments and renewals up to a total of $1.5-billion."
Home Capital said the third party plans to buy up to $1-billion in qualifying uninsured mortgages, "with an immediate interest in purchasing or accepting commitments and/or renewals for up to half of that amount, or $500-million."
It also plans to buy or accept commitments for up to $500-million in insured mortgages, subject to appropriate documentation.
Home Capital said the third party has also expressed an interest in expanding the arrangement at a later date.
"This is another step forward in the company's efforts to restore confidence in our operations," said Home Capital board chair Brenda Eprile in a release on Tuesday morning.
"This purchase arrangement is designed to give us the ability to continue to serve as many customers as possible in the mortgage broker channel, and we are optimistic that there can be opportunities for future growth," said interim CEO Bonita Then.
The company said it's tightening its lending criteria and reducing some of its broker incentive programs "and expect that will result in a decline in our originations and renewals," said Ms. Then. "We will continue to evaluate opportunities that could enable us to return to more normal levels of activity in our traditional on-balance sheet business."
The company will continue to offer mortgages in most of its existing product categories "at reduced volumes."
Home Capital said its liquid assets stood at approximately $1.1-billion at the end of Monday. Combined with the undrawn amount of $600-million under the facility led by HOOPP, its aggregate available liquidity and credit capacity totalled approximately $1.7-billion.
Its High Interest Savings Account deposit balances are expected to be about $146-million today. Guaranteed Investment Certificate deposits stood at approximately $12.64-billion as at May 7.
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MTY Food Group Inc. (MTY-T) says one of its subsidiaries has acquired the assets of Steak Frites St-Paul and Giorgio Ristorante for about $300,000.
There are currently six Giorgio Ristorante and nine Steak Frites St-Paul in operation.
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Crew Energy Inc. (CR-T) reported first-quarter sales of $57.3-million, up from $36.3-million a year earlier.
Net income was $8.1-million or 5 cents per share versus a loss of $6.8-million or five cents a year earlier.
Funds from operations came in at $27.7-million up from $11.7-million a year ago. FFO per share increased 125 per cent to 18 cents from 8 cents a year ago.
Analysts were expecting revenue of $57.4-million and earnings of 3 cents per share.
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Trilogy Energy Corp. (TET-T) reported first-quarter sales of $76.1-million up from $61.8-million a year earlier.
Funds flow from operations was $36.4-million or 29 cents per share versus $21.8-million or 17 cents a year earlier. Earnings were $10.9-million or 9 cents versus a loss of $24.6-million or 19 cents a year earlier.
Analysts were expecting a loss of 4 cents and sales of $71-million.
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Artis Real Estate Investment Trust (AX.UN-T) reported first-quarter revenue of $139.5-million versus $139.1-million a year earlier.
Funds from operations were $54.9-million or 36 cents per unit compared to $53.7-million or 38 cents a year earlier.
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Redknee Solutions Inc. (RKN-T) announced "key services agreements" that it says will speed up its growth plans.
The company said it has entered into services agreements with Crossover Markets Inc. and DevFactory FZ-LLC to provide technical services for six weeks.
"We are intensely focused on creating market leading products and ensuring we deliver customer success," said Redkness CEO Danielle Royston. "These agreements will enable us to expedite the implementation of our strategic plan while ensuring minimal disruption to customer projects during our transformational period."
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Temple Hotels Inc. (TPH-T) reported first-quarter revenue of $36.2-million up from $35.8-million a year ago.
Its net loss was $5.6-million or 4 cents per share compared to a loss of $68.4-million or 88 cents a year ago.
It said the decrease in net loss was mainly due to a decrease in provision for impairment of $43.9-million and a decrease in deferred income tax expense of $16.8-million, among other items.
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HNZ Group Inc. (HNZ-T) says it has been awarded contracts by Inpex Operations Australia Pty Ltd and Shell Australia Pty Ltd to provide offshore search and rescue services.
HNZ said it will supply one leased Sikorsky S-92 heavy helicopter to provide 365-day search and rescue and medical evacuation services "in order to support both offshore facilities in Australia."
It said contract terms are five years, plus two, two-year optional renewal periods.
"We are very excited to expand our S-92 operations in Broome to include full all-weather search and rescue services. This new contract extends our relationships with both INPEX and Shell and we are pleased with the continued confidence they have placed in us," said CEO Don Wall.
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NGEx Resources Inc. (NGQ-T) reported a first-quarter net loss of $3.3-million or 2 cents per share, compared to a loss of $3.4-million or 2 cents per share for the three months ended March 31, 2016.
Analysts were expecting a loss of 2 cents.
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Mainstreet Equity Corp. (MEQ-T) reported second-quarter rental revenues of $26-million, compared with $25.3-million a year earlier.
Net operating income fell 7 per cent to $14.8-million.
Funds from operations increased 5 per cent to $7.2-million, compared with $6.9-million a year earlier.
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Brookfield Real Estate Services Inc. (BRE-T) reported first-quarter cash flow from operations of $7.4-million or 58 cents per share compared to $6.8-million or 53 cents a year ago. Royalties for the three months ended March 31, were $10.4-million, compared to $9.4-million for the same period in 2016.
Net earnings were $1.3-million or 13 cents per share, compared to $900,000 or 10 cents a year earlier.
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Rocky Mountain Dealerships Inc. (RME-T) reported first-quarter sales of $209.9-million, up 11 per cent.
Net earnings were $811,000 or 4 cents per share compared to $264,000 or a penny a year earlier.
Analysts were expecting revenue of $202-million and earnings of 2 cents.
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Northern Blizzard Resources Inc. (NBZ-T) reported funds from operations of $20.9-million or 18 cents per share for the first quarter of 2017. That compared to $26.8-million or 23 cents a year earlier.
Its net income was $20.9-million or 18 cents compared to $10.1 million or 9 cents a year earlier.
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Uranium Energy Corp (UEC-T) says it's buying Reno Creek Holdings Inc. and its project in the Powder River Basin of Wyoming from Pacific Road Resources Funds in a share purchase agreement.
"The Reno Creek Project presents a rare opportunity to acquire a large, fully permitted, construction ready, and strategic low-cost ISR [in-situ recovery] asset located in the United States – a complete set of attributes for any potential UEC acquisition," said CEO Amir Adnani.
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Silvercorp Metals Inc. (SVM-T) says it received $470,000 in satisfaction of two litigation cost awards granted in its favour in a class-action lawsuit.
The company said the awards are from the Ontario Superior Court of Justice and the Court of Appeal of Ontario.
"The cost awards were ordered in its successful defense of an action commenced on May 21, 2013," the company said. "The Ontario Superior Court of Justice decision noted that the plaintiff's case was so weak or had been so successfully rebutted by Silvercorp that the plaintiff had no reasonable possibility of success at trial, a finding that was upheld by the Court of Appeal. That action was discontinued by Order of the Ontario Court on April 19, 2017."
The company said three other class-action lawsuits have also been discontinued.
"We are very pleased that the actions have been discontinued and that we have received payment of the cost awards owing to us," said CEO Rui Feng.
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Torc Oil & Gas Ltd. (TOG-T) reported first-quarter net income of $2.7-million or a penny per share compared to a loss of $25.3-million or 16 cents a year earlier.
Adjusted funds flow from operations came in at $51.5-million or 28 cents compared to $14.1-million or 9 cents a year earlier.
The company also increased its 2017 production guidance after the completion of acquisitions.
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Pacific Exploration & Production Corp. (PEN-T) reported first-quarter net income of $8.5-million (U.S.) compared to a loss of $901-million a year earlier.
Revenue of $317-million compared to $457-million a year earlier.
Analysts were expecting revenue of $305.7-million.
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Great Canadian Gaming Corp. (GC-T) reported revenues of $142.7-million in the first quarter, up 9 per cent versus a year earlier.
Net earnings increased 71 per cent to $17.8-million. Earnings per share were 29 cents, up 81 per cent year-over-year.
Analysts were expecting revenue of $140-million and earnings of 30 cents.
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Stingray Digital Group Inc. (RAY.A-T; RAY.B-T) has acquired Israel-based Yokee Music LTD, provider of three social music apps Yokee, Yokee Guitar, and Yokee Piano.
The price wasn't disclosed.
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Intertape PolymerGroup Inc. (ITP-T) said first-quarter revenue increased 8.5 per cent year-over-year to $207.1-million (U.S.), "primarily due to additional revenue from the Powerband Acquisition and an increase in average selling price, including the impact of product mix."
Net earnings attributable to the company's shareholders increased $3.9-million to $13.5-million. Earnings per share were 22 cents compared to 16 cents a year ago.
Analysts were expecting revenue of $207-million and earnings of 24 cents.
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Ag Growth International Inc. (AFN-T) reported sales of $154.7-million in the first quarter compared to $113.7-million a year earlier.
Profit was $5.1-million or 33 cents per share compared to $5.7-million or 38 cents a year earlier.
Analysts were expecting earnings of 40 cents per share and revenue of $143.4-million.
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Slate Office REIT (SOT.UN-T) reported first-quarter net income and comprehensive income of $8.4-million, compared to $3.6-million in the same period in 2016.
Rental revenue was $32.3-million up from $27.6-million a year earlier.
Net operating income was $14.2-million, an increase of $2.4-million compared to the same period in 2016.
Funds from operations per unit was 21 cents compared to 23 cents in the same period in the prior year.
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Liquor Stores N.A. Ltd. (LIQ-T) reported consolidated sales of $162.4-million in the first quarter, down 5.6 per cent from $172-million a year ago.
It blamed calendar shifts in Easter and leap year in part for the drop.
Canadian same-store sales were $93.8-million, down 4.6 per cent year over year. U.S. same-store sales were $34.2-million, down 5.7 per cent.
Its net loss was $4.8-million or 18 cents per share compared to a loss of $1.5-million or 6 cents a year earlier.
Analysts were expecting a loss of 13 cents and revenue of $162.4-million.
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Information Services Corp. (ISV-T) reported first-quarter revenue of $21.5-million up from $19.6-million a year earlier.
Net income was $2.4-million or 14 cents per share compared to $2.2-million or 12 cents a year earlier.
Analysts were expecting earnings of 16 cents and revenue of $21.5-million.
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