Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Jamieson Wellness Inc. (JWEL-T) announced that it expects first-quarter revenue to come in at between $83-million to $84.5-million, compared to $72.6-million in the prior-year period. Analysts were expecting revenue of $78.4-million.
The company said it expects the higher revenues to be partially offset by investments to maximize employee safety "while maintaining production volumes and supporting the business, its employees and communities throughout the COVID-19 pandemic."
The company said it's maintaining its full-year 2020 guidance "acknowledging that the timing of revenue may be accelerated as a result of our consumers’ need to ensure personal supply." It said the seasonality of its volumes in fiscal 2020 "may be inconsistent with the pattern experienced in the prior year."
The company also said there will be incremental costs to maintain adequate supply and that it will temporarily reduce total output to ensure the health and safety of its employees. “This will create gross margin pressure as a function of the depth and duration of recommended social distancing policies in the weeks and months to come.”
Wayland Group Corp. (WAYL-C) announced it will seek an order before the Ontario Superior Court of Justice (Commercial List) to be acquired by Ring International Holding AG for a purchase price of up to $12.4-million. The move is part of the Companies’ Creditors Arrangement Act proceedings of the Wayland Group. The company said there’s no definitive agreement.
Just Energy Group Inc. (JE-T) provided an update on its previously announced strategic review process taking into account the impacts from COVID-19, saying it’s “no longer in active discussions regarding a specific transaction at this time, but is continuing to explore and evaluate alternatives under the strategic review process, including additional cost reduction and optimization strategies, improving efficiencies and eliminating redundancies, sales of certain assets, improvements to liquidity and leverage, refinancings and the sale of the entire business.”
Sierra Metals Inc. (SMT-T) announced that the Peruvian government has extended the state of emergency by an additional 14 days to contain the advancement of COVID-19 virus. “Non-essential businesses are required to close, and travel remains restricted within the country,” the company stated. “As a result of this extension of the declaration, the company will continue to only maintain an essential services crew at the mine site until April 26, 2020, at which time the company hopes to resume normal production levels at the mine.”
The company said it continues to implement "proactive and reactive mitigation measures to minimize potential impacts on our workforce, communities, operations and supply chain," including "preserving capital and deferring capital expenditures where appropriate, to improve liquidity."
It also said its guidance remains suspended “as we evaluate our mines.”
Its net loss was $936,000 or 3 cents per share versus a profit of $685,000 or 2 cents a year earlier, according to documents filed on Sedar.
EBITDA for the quarter was $3.4 million, a gain of 19 per cent compared to $2.8 million in the prior year.
StorageVault said it has completed a $3.7-million acquisition of a store in Brandon, Man. and has entered into an asset purchase agreement with Access Self Storage Inc. to purchase two stores in Winnipeg for a total purchase price of $7.84-million.
“We are pleased to add these 3 strategic stores to StorageVault’s portfolio in Manitoba bringing our count to 12 in the province and 202 owned and operated across Canada," stated Iqbal Khan, chief financial officer.
American Hotel Income Properties REIT LP (HOT.UN-T) announced it would temporarily suspend guest operations at four hotels, and consolidate operations at 15 properties with other adjacent AHIP hotels. It has also “significantly reduced” staffing levels to preserve cash flow. The company said more than 1,600 hotel staff have been laid off or furloughed, to date, which represents 65 per cent of its total hotel workforce.
"These decisions are always difficult, but we have ensured key roles remain in order to maintain the properties and be well positioned for a rapid recovery when regular travel patterns resume," John O'Neill, CEO, said in a release.
AHIP has also reduced its corporate staffing levels by approximately 27 per cent and all senior management has taken an immediate 15 per cent salary reduction for the remainder of 2020. Mr. O'Neill has agreed to an immediate 50-per-cent salary reduction for the remainder of 2020 and will continue to receive all of his compensation in units. AHIP's board of directors has agreed to receive 100 per cent of their 2020 retainer fees in units, rather than cash. The collective actions will reduce 2020 corporate cash expenses by approximately $1.5-million.
AHIP also said it's taking "all prudent measures necessary to reduce its expenses and conserve cash during this period of economic uncertainty." It said more than $100-million of annualized cash flow savings have already been identified through the following initiatives.
The company is also deferring the payment of its March 2020 distribution previously declared to be payable on April 15. "The payment will occur when business levels improve and AHIP's board of directors, in consultation with management, determines it is appropriate to pay," it stated.
The company also said its executives and board members have collectively purchased over 500,000 units over the past three weeks through open market transactions, "representing their belief in the long-term value of the company."
"Lightspeed saw positive momentum through most of the quarter prior to feeling the impact of the global economic disruption caused by the COVID-19 pandemic," it stated.
It said the COVID-19 pandemic "continues to impact Lightspeed's retail and hospitality customers, including their GTV2, overall demand for Lightspeed services, and anticipated churn rates due to business closures."
The company said it's working to mitigate the negative impacts by offering customer-focused initiatives, such as subscription discounts and deferred payment arrangements, and cost-containment measures.
"Despite the present risks and uncertainties, Lightspeed believes it is well positioned to help SMB retailers and restaurants move away from legacy on-premise systems to cloud-based, omni-channel solutions," it stated.
Lightspeed said it will report fourth fiscal quarter and full-year 2020 financial results before the market opens on May 21.
Premier Gold Mines Ltd. (PG-T) announces that Centerra Gold Inc. has not accepted its offer to acquire Centerra’s 50-per-cent interest in the Greenstone Gold Mines Partnership for about US$205-million.
"Centerra's decision not to accept our offer confirms that Centerra recognizes the substantial value of the Hardrock Project and is inconsistent with its refusal to make a positive feasibility decision in connection with the project," Ewan Downie, CEO of Premier said in a release.
The company said it will “continue to take all steps necessary to protect its interest in the project.”