Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Westjet Airlines Ltd. (WJA-T) issued a release saying it “respects the binding interim order” issue late Thursday related to its soon-to-launch airline Swoop. The order directs that existing Swoop pilots will remain in their current positions until directed otherwise by the arbitrator, the company said, “and that WestJet pilots can now fly Swoop aircraft at Swoop terms and conditions.”
The interim order also says the Air Line Pilot Association, International (ALPA) WestJet and Swoop will make a joint application to the Canada Industrial Relations Board requesting the board to amend ALPA’s bargaining certificate to recognize ALPA as the bargaining agent for pilots of Swoop in addition to the pilots of WestJet by September 1, 2018. “The arbitrator has further directed that additional hearing dates are required through the summer and into September to properly address all outstanding issues,” the company stated.
Separately, Westjet reported a load factor of 82.2 per cent in May, an increase of 1.6 percentage points year-over-year. Revenue passenger miles, or traffic, increased 7.5 per cent year over year. Capacity measured in available seat miles, grew 5.4 per cent over the same period.
**
Cervus Equipment Corp. (CERV-T) says its founder, largest shareholder and board chair, Peter Lacey, and his wife, Kathy Lacey, plan to reduce their stake in the company over the next three years. They will own less than 10 per cent of Cervus’ shares by December 31, 2021, the company stated, which compares to about 20.6 per cent today. “These sales are required in order for the Laceys to comply with recent amendments to the rules governing qualified investments for registered retirement savings plans,” the company stated.
**
Enghouse Systems Limited (ENGH-T) reported second-quarter revenue of $85.2-million, compared to revenue of $79.5-million in the second quarter last year. Net income for the quarter was $15.3-million or 56 cents per share, compared to $9-million or 33 cents per share a year earlier. Analysts were expecting revenue of $86.6-million and earnings of 47 cents in the latest quarter.
**
Fairfax Africa Holdings Corporation (FAH.U-T) says it’s raising about US$150-million in a bought-deal financing. It has an agreement with a syndicate of underwriters to buy 12.3 million subordinate voting shares at a price of US$12.25 each. Fairfax Africa said it intends to use the net proceeds to acquire “additional African Investments and for general corporate purposes, including the repayment of indebtedness.”
**
Major Drilling Group International Inc. (MDI-T) reported revenue of $95.4-million in the fourth quarter, up 17 per cent from the $81.5-million recorded for the same quarter last year. Its net loss was $4.3-million or 5 cents per share for the quarter, compared to a net loss of $8.2-million or 10 cents per share for the prior-year quarter. Analysts were expecting revenue of $90.7-million and a loss of 4 cents.
**
Mitel Networks Corp (MITL-Q; MNW-T) says the “go-shop” period has expired as part of the takeover proposal from Searchlight Capital Partners, L.P and that 86 potential buyers were contacted, seven of which entered into confidentiality agreements with Mitel “but no potential buyer submitted an acquisition proposal.”
It said the deal with Searchlight is expected to close during the second half of 2018.
**
Sunniva Inc. (SNN-CN) says its Logistics, LLC subsidiary has secured an extraction contract with Farmacy Phactory, a leading California cannabis brand. “Under the terms of the agreements, the Sun-Oil Facility will provide them with high quality, ultra-purified manufactured distilled oil products including specialized flavored distilled oil formulations to be utilized within vaporization cartridges,” the company stated.
The 12-month agreement may be renewed for an additional 12 months at the request of Farmacy Phactory at the expiry of the initial term.