Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
DavidsTea Inc. (DTEA-Q) will shrink its retail store network to 18 Canadian locations as the insolvent beverage chain shutters 82 more stores in the country while dealing with the impact of COVID-19.
The Montreal-based company says it is sending out lease termination notices for the stores and expects them to be wound down within the next 30 days.
The move comes after DavidsTea closed 82 other stores in Canada and all 42 of its stores in the United States in early July to focus on its e-commerce business and supplying grocery stores and pharmacies.
The company said at the time that it would seek more favourable lease terms for the remaining 100 stores in Canada and may permanently shut additional locations if landlords are unwilling to negotiate suitable leases.
DavidsTea now says it was able to secure new, more favourable lease terms and conditions for 18 of its locations, which will reopen.
The company has obtained creditor protection under the Companies Creditors Arrangement Act (CCAA) warned in mid-June that it could begin a formal restructuring depending on the outcome of its talks with landlords, who hadn’t received rent from DavidsTea for April, May and June.
-The Canadian Press
Its net loss attributable to common shareholders for the three months ended June 30 was $60-million compared to nil in the same period in the prior year. EBITDA of $217-million compared to $215-million in the same period of 2019.
Free cash flow, which the company said is one of its key financial metrics, totaled $91-million versus $49-million a year ago.
Net income was $5.7-million down from $9.5-million a year ago.
Funds from operations came in at $12.7-milion or 17 cents per share versus $13.1-million or 18 cents a year ago.
Analysts were expecting revenue of $41.5-million and FFO of 17 cents per share.
CanWel Building Materials Group Ltd. (CWX-T) reported second-quarter revenues of $412.9-million compared to $385.7-million in the same period in 2019. Analysts were expecting revenue of $375.1-million.
Net earnings were $12.7-million compared to net earnings of $7.8-million in the same quarter of 2019.
Its net loss was $61.2-million or 18 cents per share versus a loss of $2.6-million or a penny per share a year earlier.
Adjusted funds flow was $8.9-million or 3 cents per share versus $50.7-million or 16 cents a year earlier.
It said the transaction was financed through a combination of a draw on the REIT's credit facility of approximately US$40-million and the issuance of approximately US$10.4-million of trust units of the REIT at US$12.25 per unit, net of prorations.
Drone Delivery Canada Corp. (FLT-X) announced that, with the assistance of its sales agent Air Canada (AC-T) and also the Pontiac Group, it has entered into a commercial agreement with the Georgina Island First Nation to deploy its patented drone delivery solution to provide service to the GIFN community in Ontario.
The six-month agreement provides for the payment of an up-front, fixed-fee for managed services for the project, the company said.
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