Take a closer look at small cap companies to boost your portfolio.Photos.com/The Globe and Mail
Our roundup of Canadian small-caps making news and on the move today.
Strategic Oil & Gas Ltd. said it anticipates being in violation of a working capital covenant on its $60-million credit facility. "Strategic is working proactively with its lenders regarding the facility and the covenants. In order to address the working capital violation and obtain the financial flexibility required to continue the development program at Marlowe when commodity prices improve, the company is evaluating measures such as asset sales, other third party funding alternatives and elimination of all non-critical capital spending programs," Strategic said in a statement.
The company also reported its fourth-quarter results, with its net loss widening to 22 cents a share from a loss of 4 cents a year earlier. In its outlook, the company said it has revised its capex budget for the first half of this year to $11-million and has shut-in about 700 barrels of oil equivalent per day production at its operations. The company has also reduced its office and field staff by about 35 per cent "to remain competitive."
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Reitmans (Canada) Ltd. reported sales for the three months ended Jan. 31 of $236.3-million, down from $240.7-million a year earlier. The results reflected a net reduction of 55 stores, as the company closes underperforming locations and converts or closes stores under the Smart Set banner.
Net earnings for the three-month period were 7 cents per share, up from 4 cents a year ago.
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Le Chateau Inc. has entered into an agreement with a corporation controlled by Herschel Segal, the founder of Le Chateau and a director and majority shareholder of the company, for long-term financing of $5.0-million.
The financing is in the form of a secured loan which bears interest at an annual rate of 7.5 per cent, is repayable at maturity on Jan. 31, 2020, and may be prepaid, in whole or in part, at any time. "This loan, in line with our current business plan and strategy, will provide the company with additional capital and financing flexibility, with proceeds being used primarily towards the company's new concept store renovation program," the retailer said in a statement.
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New Flyer Industries Inc., a manufacturer of heavy-duty transit buses in Canada and the United States, announced that the company and the UNIFOR main collective bargaining unit at New Flyer's Winnipeg facility have reached a tentative new three-year collective bargaining agreement. The members of the main bargaining unit will hold a ratification vote on the new agreement on April 11, 2015. The current collective bargaining agreement expired on March 31, 2015; however, the terms and conditions of that agreement remain in effect until the parties enter into a new agreement.
The Winnipeg plant's unionized workforce represents approximately 22 percent of New Flyer's total workforce in Canada and the United States.
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Pretium Resources Inc. and the Nisga'a Nation announced that they have entered into a comprehensive Cooperation and Benefits Agreement for Pretivm's Brucejack project in northwest British Columbia. "The agreement establishes a long-term, mutually-beneficial relationship between Pretivm and the Nisga'a Nation, who have rights and interests as defined by the Nisga'a Final Agreement in the Nass Area where portions of the project are located," according to the company.
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COM DEV International Ltd. announced that it has secured four orders totalling nearly $10-million (Canadian) to supply microwave equipment for communication satellites for new customers from its recently expanded operations in the UK. Deliveries under these contracts will begin in fiscal 2016 and continue to 2018.
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Darcy Keith