Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Stingray Digital Group Inc. (RAY.A-T; RAY.B-T) reported fourth-quarter revenues increased 24.7 per cent to $33-million, which was in line with expectations of $32.9-million. Net income of was $4.7-million or 8 cents per share compared to $4.6-million or 9 cents per share a year ago.
TWC Enterprises Limited (TWC-T) is selling the White Pass & Yukon Route rail and port operations based out of Skagway, Alaska, to Carnival Corporation & plc (for US$290-million, including about US$70-million to US$80-million in debt, income taxes and other liabilities. TWC has the option of taking up to US$84-million of the proceeds in Carnival plc shares.
White Pass includes tourist railway stretching approximately 110 km from Skagway, Alaska through B.C. to Carcross, Yukon, the company said.
Canaccord Genuity Group Inc. (CF-T) says it plans to buy an additional 30 per cent of the shares in its Australian capital markets and wealth management business, Canaccord Genuity (Australia) Limited. “This transaction has been sought by both parties and will increase the company’s ownership in Canaccord Genuity (Australia) to 80 per cent from 50 per cent,” the company stated.
“This investment provides a stronger foothold to explore opportunities to expand our wealth management businesses and increase contributions from our capital markets business in the region,” said CEO Dan Daviau. “Our Australian team is well integrated into our global platform and has delivered very promising growth in recent years. We look forward to continuing to support their development initiatives in the region.”
The consideration for the purchase will be $36-million (Austrailian, or about $35.7-million Canadian), mostly in cash and shares.
The company also reported revenue of $322.1-million in the fourth quarter, an increase of 18.6 per cent from $271.7-million a year earlier. Its net loss was $9.7-million or 15 cents per share compared to net income of $31-million or 26 cents a year ago. Excluding “significant items,” the company reported net income of $37.3-million or 28 cents per share compared to net income of $32.7-million or 27 cents a year earlier.
Analysts were expecting revenue of $283.5-million and adjusted earnings of 22 cents per share.
Exchange Income Corp. (EIF-T) announced a $70-million bought-deal financing of convertible unsecured subordinated debentures. It has an agreement with a syndicate of underwriters to issue the convertible unsecured subordinated debentures at a price of $1,000 each.
The company said it intends to use the net proceeds to fund the redemption of the 2013 debentures and to repay debt under its credit facility. “The redemption of the 2013 debentures is not conditional upon the completion of the offering,” it stated.
Northview Apartment Real Estate Investment Trust (NVU.UN-T) says it has agreed to acquire a 623-unit portfolio of six apartment properties from affiliates of Starlight Group Property Holdings Inc. for $151.8-million
“The acquisition furthers Northview’s strategy of growing its portfolio of high-quality multi-family assets in strong and growing markets,” stated CEO Todd Cook.
It also said it was raising $110-million in a bought deal financing. It has an agreement with underwriters to sell 4.2 million trust units at a price of $26.20 each.
Northview said it intends to use the net proceeds to fund a portion of the acquisition and to repay a portion of its credit facilities.
Pinnacle Renewable Holdings Inc. (PL-T) announced a $5-million secondary offering of common shares. It has an agreement with underwriters to purchase 3.6 million common shares held by a group of selling shareholders at an offering price of $13.75 per share.
Questerre Energy Corp. (QEC-T) CEO Michael Binnion issued a statement saying his company “condemns the decision today by the Government of Quebec” to put forward new regulations that, if implemented, would ban hydraulic fracturing “and any meaningful exploitation of natural gas in Quebec.”
Mr. Binnon says the government has decided to “capitulate to a vocal minority that are seeking to both block the progress on our global environment and the growth of Quebec’s economy. This decision is motivated solely by short-term politics around the upcoming election.”
Summit Industrial Income REIT (SMU.UN-T) says it has entered into agreements to acquire five warehouse and logistics properties located in Markham, Burlington and Calgary for a total purchase price of approximately $127-million. It said the acquisitions will be funded by cash from its credit lines, an assumed $8.5-million mortgage, and the net proceeds of a $100-million bought-deal equity offering.
Killam said it intends to use the net proceeds to fully repay its credit facility with a current outstanding balance of approximately $30-million, as well as to fund future acquisitions and developments and for general trust purposes.
Andrew Peller Limited (ADW.A-T; ADW.B-T) reported fourth-quarter sales of $78.8-million up from $72.3-million a year earlier. Analysts were expecting revenue of $79.9-million.Its net loss was $1.7-million or 2 cents per share versus a profit of $2-million or 4 cents a year ago.
The board also approved a 13.9-per-cent increase in common share dividends for shareholders of record on June 29, payable on July 6. It said the annual dividend on Class A shares was increased to 20.5 cents per share from 18 cents. The dividend on Class B shares was increased to 17.8 cents per share from 15.65 cents per share. “The company has consistently paid common share dividends since 1979 and has increased dividends every year for the past five years,” it stated.