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Our roundup of Canadian small-caps of between $100-million and $3-billion in market capitalization making news

Goodfood Market Corp. (FOOD-T) announced it will transition out of its on-demand service and focus on its weekly meal plans and add-ons to try to maximize earnings and cash flow.

The company said the decision came after a review of its operations, which found that continuing its model of micro-fulfillment centers that supply 30-minute delivery service would require “significant additional capital and operating expense investments” to be profitable.

The company said that it expects a non-cash impairment charge in the range of $45-million and $50-million in the fourth quarter ended Sept. 3, with additional charges possible.

For the fourth quarter, the company said it expects sales to be between $50-million and $51-million, which is below expectations of $53.3-million according to S&P Capital IQ.

Its adjusted loss before interest, tax, depreciation and amortization is expected to be between $2-million and $4-million.

**

Dye & Durham (DND-T) announced plans to sell 2021 acquisition TM Group after the United Kingdom’s competition regulator ordered the sale due to competition concerns.

The UK’s Competition and Markets Authority (CMA) said the software company’s July 2021 acquisition would “substantially” lessen competition in property search reports in England and Wales. The CMA launched its investigation last October.

Dye & Durham has previously said it strongly disagrees with the CMA’s decision to order the sale of TM Group. Dye & Durham says it will initiate the process to sell TM Group soon.

- The Canadian Press

**

Hudbay Minerals Inc. (HBM-T) announced the appointment of Eugene Lei as senior vice-president and chief financial officer. The company said Steve Douglas “is departing the company.”

Mark Gupta was promoted to vice-president of corporate development.

**

Birchcliff Energy Ltd. (BIR-T) announced a special dividend on its common shares, as well as preliminary 2023 guidance and updated 2022 guidance.

The company said the special cash dividend of 20 cents per common share is payable on Oct. 28 to shareholders of record at the close of business on Oct. 21.

It also said the board approved an $80-million increase to its F&D [finding and development] capital budget for 2022.

“This further capital investment in our business will help to ensure the most efficient execution of our 2023 capital program and will not increase our 2022 annual average production,” the company said.

It’s currently targeting F&D capital expenditures of $240-million to $270-million in 2023, which is expected to deliver annual average production of 81,000 to 83,000 boe/d, a 5-per-cent increase over 2022. It’s also forecasting that it will generate adjusted funds flow of approximately $855-million and free funds flow of approximately $585-million to $615-million in 2023, based on current strip pricing.

“This anticipated significant free funds flow provides the corporation with the ability to sustainably increase shareholder returns,” it stated.

**

Sherritt International Corp. (S-T) announced it has signed agreements with its Cuban partners to settle its total outstanding Cuban receivables over five years, beginning Jan. 1, 2023.

“Under the agreements, the Moa Joint Venture (Moa JV) will prioritize payment of dividends in the form of finished cobalt to each partner, up to an annual maximum volume of cobalt, with any additional dividends in a given year to be distributed in cash,” the company stated.

“All of the Cuban partner’s share of these cobalt dividends, and potentially additional cash dividends, will be redirected to Sherritt as payment to settle the receivables until an annual dollar limit, including the collection of any prior year shortfalls, has been reached.”

Sherritt said the “irrevocable cobalt swap” supports an objective to strengthen its balance sheet by reducing reliance on its Cuban partners’ ability to access foreign currency to repay amounts owed to the company.

**

Verano Holdings Corp. (VRNO-CN) announced it has terminated the agreement from January to acquire Goodness Growth Holdings Inc. (GGH).

“We believe the decision to terminate this arrangement agreement was in the best interest of Verano and our shareholders,” said CEO George Archos. “As we work through the termination process, we expect to provide additional commentary.”

The said company GGH owes it a termination fee of about $14.9-million plus the reimbursement of transaction expenses of up to $3-million.

**

Goodfellow Inc. (GDL-T) reported net earnings of $10.6-million or $1.24 per share for its third quarter ended Aug. 31 compared to net earnings of $10-million or $1.17 per share a year ago. Sales were $167.6-million compared to $168-million last year.

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 24/04/24 9:30am EDT.

SymbolName% changeLast
DND-T
Dye & Durham Ltd
-2.66%14.64
HBM-T
Hudbay Minerals Inc
+3.77%11
BIR-T
Birchcliff Energy Ltd
-1.41%5.61
S-T
Sherritt Intl Rv
-3.03%0.32
FOOD-T
Goodfood Market Corp
-3.08%0.315
GDL-T
Goodfellow Inc
+0.94%15

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