An aerial photo of downtown Calgary in 2012.The Globe and Mail
Our roundup of Canadian small-caps making news and on the move today. This post will be updated through the morning.
Entrec Corp. said that it is closing its branch in Calgary and will immediately reduce its work force by approximately 15 per cent in an effort to trim costs due to the softness in commodity prices. The transportation services provided by the Calgary branch will now be offered by its Acheson branch. The crane solutions provider expects that these efforts will result in savings of $4 to $5-million per year.
"In the current industry downturn, we are focused on controlling our costs and maintaining maximum efficiency," said president and chief executive officer John M. Stevens. "Among other things, this means right-sizing our company for the current business environment. Given the negative outlook in the short-term, we will remain as lean as possible."
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Candax Energy Inc. said it is reviewing its strategic and financial alternatives in light of the significant decline in oil prices that has adversely affected its financial flexibility. Management is considering a sale of the firm in parts or as a whole, a joint venture, or a recapitalization, among other options. The company owes one of its debtholders $4-million due on January 31.
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Norbord Inc. said it recorded revenues of $282-million (U.S.) in the fourth quarter, which were above analysts' expectations, and also posted better than anticipated profits. However, president and chief executive officer Peter Wijnberger said that the firm's "2014 financial performance did not live up to our expectations." The company also announced that its shareholders as well as those of Ainsworth Lumber Co. Limited voted in favour of Norbord's acquisition of the firm.
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Tamarack Valley Energy Ltd. said it has set its capital budget at $47-million for 2015, and plans to spend just $10.5-million in the first half of the year while it pays down debt. In 2014, its capital budget was set at $68-million.
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Ikkuma Resources Corp. said it was cutting its 2015 capital budget to $23-million from $46-million in light of the continued weakness in commodity prices. Capital expenditures will be targeted towards recompletion and optimization projects.
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Arriane Phospate Inc. said it will have an audience with an environmental advisory agency in Quebec to discuss the potential environmental impact and economic benefits of its proposed Lac-à-Paul phosphate project on February 18. "Securing permitting for our Lac-à-Paul phosphate project represents another major milestone for our Company," said chief executive officer Jean-Sebastien David. "We very much look forward to the start of the public consultation process and showing the reasons why Lac-à-Paul is a world-class project that will provide significant economic benefits to the Saguenay region with little environmental impact."
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Hemisphere Energy Corp. said that its production remains cash flow positive even at these low oil prices, but that it does not plan to drill any new wells until the second half of 2015. Management intends to reduce debt levels to shore up the company's balance sheet.
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MATRRIX Energy Technologies Inc. said it has suspended roughly $500,000 in previously announced capital expenditures, and indicated that it expects "materially lower activity levels" in the first quarter of 2015 relative to the same period in 2014.
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More to come.