Skip to main content

Inside the Market's roundup of some of the Canadian small caps making news and on the move today. This post will be updated through the morning.

New Gold Inc.  said it has agreed to buy Bayfield Ventures Corp. for $16.6-million. Bayfield shareholders will receive 0.0477 of a New Gold common share for each Bayfield common share held. The offer values Bayfield at $0.21 per common share -- a 50 per cent premium to Bayfield's November 7, 2014 closing price and a 47 per cent premium based on each company's 20-day volume weighted average trading price.

-

Ainsworth Lumber Co. Ltd. reported third-quarter sales of $116.3-million, short of Street expectations of $128.66-million. "North American OSB market conditions were disappointing during the third quarter of 2014 as the pace of recovery in the U.S. housing market fell short of expectations," said Ainsworth president and chief executive officer Jim Lake. "However, we are optimistic that the recovery will regain traction in 2015."

Raymond James analyst Daryl Swetlishoff downgraded the stock from "outperform" to "market perform" and lowered his target price from $3.45 to $2.75. To read more about analyst actions, see Today's analyst upgrades and downgrades.

-

Northern Blizzard Resources Inc. said it would cut capital spending for 2015 to $215-million, $45-million less than previous guidance of $260-million, "in light of the recent decline in oil prices."

"As a result of the revised capital program, we expect production to be at the lower end of the guidance range previously provided of 24,500 boe/d to 25,500 boe/d. Funds from operations (including hedging) for 2015 are expected to be in the range of $300-million to $321-million."

-

Home Trust Company, a wholly owned subsidiary of Home Capital Group Inc., said it intends to apply for a Schedule I bank charter.

"Forming a bank subsidiary would give Home Trust greater strategic flexibility in the long run. The main purpose of applying for the bank charter right now is to help us grow and diversify our deposit base," said Gerald M. Soloway, CEO of Home Trust and Home Capital. "We have been very successful with our Oaken Financial branded deposit products and the bank would support and carry that initiative forward."

-

Parallel Energy Trust said its payout ratio may change.

"Based on actual financial results for the nine months ended September 30, 2014, expected production levels for the balance of the year and current forward strip commodity prices for the balance of the year, Parallel is reiterating its cash flow estimate of $46-million for the full year 2014. This level of cash flow would result in Parallel achieving its original full-year basic payout ratio estimate (defined as distributions divided by funds from operations) of approximately 70 per cent. Parallel's all-in payout ratio (defined as distributions and capital expenditures divided by funds from operations) is now expected to be between 105 to 110 per cent for the full year 2014 as compared to the original estimate of 100 per cent, as a result of higher drilling costs and unscheduled overhauls during the year."

-

GLV Inc. said it has obtained a higher purchase price from the Verreault family of $67-million, compared with the initial offer of $65-million, for its paper and pulp division.

-

DHX Media Ltd. said it has struck an agreement with China National Television to launch a streaming service across several platforms nationally in China. In the revenue-sharing deal, DHX will provide more than 700 half hours of children's content initially for the new service, which is expected to offer video on demand, advertising video on demand  and subscription video on demand services.

-

NAPEC Inc. said it recorded a net loss of $3-million, or $0.04 per share, in the third quarter of 2014, compared to a net loss of $504,000, or $0.01 per basic and diluted share, in the third quarter of 2013. Revenues were $70-million, up 22 per cent from the third quarter of 2013.

"In Ontario, the execution of an unprofitable contract in a new market segment has affected profitability. Moreover, in Quebec, NAPEC is a very active bidder and we are confident of winning large-scale contracts on the strength of the quality and the solid reputation of our team. Finally, we are continuing our efforts to reduce operating costs as part of our internal strategic review", said CEO Pierre Gauthier.

-

Holloway Lodging Corp. said that it has reduced to $7.1-million from $15-million debt that it assumed when it acquired Royal Host. "This reduction was funded almost entirely from cash flow from operations and is evidence of the cash flow generating power of Holloway today," the company said in a statement.

"Holloway's priorities for the remainder of 2014 and early 2015 will be to fully integrate Royal Host into Holloway; continue to deleverage either by reducing our debt or by selling assets at low cap rates (high valuations) and reinvesting the proceeds in high cap rate properties (low valuations);  refinance certain of our mortgages in order to take advantage of the low interest rate environment and extend our debt maturity profile; sell certain non-core assets (particularly excess land holdings that do not have material development potential); continue to grow the Travelodge franchise business; and strategically invest in certain of our hotel properties."

-

NorthWest Healthcare Properties Real Estate Investment Trust reported third-quarter funds from operations per unit of $0.25, in line with Street expectations. "While the quarter appeared somewhat uneventful, we did make progress on various value creation initiatives that should, in due course, result in improved portfolio quality and performance," said CEO Peter Riggin.

-

Turquoise Hill Resources Ltd. reported a lower third-quarter loss due to the start of sales from its Oyu Tolgoi copper-gold mine in Mongolia and lower operating expenses. Its net loss fell to $38.6-million, or 2 cents per share, in the quarter ended Sept. 30 from $94-million, or 9 cents per share, a year earlier.