Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Aecon Group Inc. (ARE-T) reported second-quarter revenue of $779-million, down 10 per cent compared to the second quarter of 2019. Its net loss of $6.2-million or 10 cents per share compared to net income of $20.4-million or 31 cents in the second quarter last year.
Analysts were expecting revenue of $693.5-million and a loss of 11 cents per share for the quarter.
The company also reported a record backlog of about $7.3-billion as of June 30, compared to a backlog of $6.8-billion a year earlier.
"Despite the impact of COVID-19 on Aecon's second-quarter results, our ability to respond with agility during these challenging times to deliver our services effectively, while ensuring the health and safety of our dedicated employees, combined with achieving the highest backlog in Aecon's history, demonstrates the resilience of our diversified portfolio," said CEO Jean-Louis Servranckx in a release.
Sierra Wireless (SWIR-Q; SW-T) announced an agreement to divest its Shenzhen, China-based automotive embedded module product line for US$165-million in cash.
The purchaser, Rolling Wireless (H.K.) Limited, is a consortium led by Fibocom Wireless Inc. of Shenzhen, the company stated.
“This divestiture enables Sierra Wireless to strengthen our focus and investment in our fully integrated IoT solutions that deliver high-value recurring revenue,” said CEO Kent Thexton “This transaction will improve our balance sheet and allow us to expand our R&D [research and development] centre in Richmond, British Columbia to accelerate our innovation in integrated IoT solutions and 5G modules, gateways and routers.”
Ceres Global Ag Corp. (CRP-T) announced it will acquire Cargill Limited's grain elevator and associated assets referred to as "Nicklen Siding" and located in Ridgedale, Sask.
Under the terms of the agreement, Ceres Global will assume Cargill's open grain purchase contracts, the company stated.
"With the acquisition of the Nicklen Siding elevator we take another meaningful step in our broader strategy to increase core product origination directly from growers in important regions" said Robert Day, CEO at Ceres Global. "The northern Saskatchewan region is critical for Ceres due to the highly efficient grower community, its product mix and competitive access to our terminal assets and customers."
Converge Technology Solutions Corp. (CTS-X) announced on Friday an increase to its previously announced bought-deal financing to $17.5-million from $15-million announced on Thursday.
The company said that it now has an agreement with a syndicate of underwriters that will purchase 10.8 million common shares at a price of $1.62 each.
Converge said it intends to use the net proceeds to repay debt, for acquisitions, working capital and other general corporate purposes.
Canfor Corp. (CFP-T) reported second-quarter sales of $1.12-billion, down from $1.17-billion a year earlier. Analysts were expecting sales of $998.3-million.
Net income was $60.7-million or 48 cents per share versus a loss of $70-million or 56 cents a year ago.
Adjusted earnings came in at 67 cents versus a loss of 21 cents a year earlier.
Canfor Pulp Products Inc. (CFX-T) reported second-quarter sales of $250.7-million down from $275.6-million a year earlier. Analysts were expecting sales of $253-million.
Its net loss was $1.1-million or 2 cents per share versus net income of $7-million or 11 cents a year earlier.
Discovery Metals Corp. (DSV-X) announced that it has arranged a non-brokered institutional private placement to raise $35-million by issuing just under 26 million units at $1.35 each.
Each unit includes one common share of Discovery and one half of one common share purchase warrant, with each full warrant exercisable at $1.75 for two years.
The company said Eric Sprott has agreed to invest $15-million in the private placement, which will result in him holding about 27 per cent of the company.
“Discovery provides unmatched leverage to a rising silver price and I am very encouraged to see the Discovery team continue to execute on their plans at the Cordero project,” Mr. Sprott stated in the release. “I have continually grown my position in the company and it is now one of my largest investments in the silver space.”
Westport Fuel Systems Inc. (WPRT-T; WPRT-Q) announced an agreement for the refinancing of its convertible notes held by funds associated with Pangaea Two Management, LP and Cartesian Capital Group.
Under the terms of the agreement, the company said it has agreed to pay down the principal amount of the existing convertible notes from US$17.5-million to US$10-million.
Concurrently, the maturity of the remaining amended notes will be extended to three years from the date of the amendments, the coupon rate will be reduced from 9 per cent annually to 6.5 per cent annually, and the conversion price will be revised from US$2.17 per share to US$1.42 per share. Peter Yu, managing partner of Cartesian, will resign his seat on the Westport board.
“The refinancing of our convertible notes with Cartesian reduces our cost of capital and extends the maturity to 2023 to better align with the growth of our HPDI business,” said Westport CEO David Johnson.
Mr. Yu called it a “mutually beneficial agreement.”
Editor’s note: Aecon Group also reported a record backlog of about $7.3-billion as of June 30, compared to a backlog of $6.8-billion a year earlier. An earlier version of the story said the company reported a backlog of about $7.3-million as of June 30, compared to a backlog of $6.8-million a year earlier.
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