Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Computer Modelling Group Ltd. (CMG-T) announced a decrease of its quarterly dividend to 5 cents per share, down from 10 cents.
“The cash retained from the dividend reduction will provide financial flexibility to the company in the current volatile market environment brought about by the COVID-19 pandemic and deteriorated commodity pricing,” the company stated. “We believe this is a prudent part of managing our liquidity, and supports our objectives of maintaining a strong balance sheet and delivering a sustainable dividend.”
Computer Modelling Group also announced cuts across the company to "preserve liquidity, manage costs and protect shareholder value." The company said it's reducing its CEO annual salary by 25 per cent, reducing directors’ cash compensation by 20 per cent; reducing executive officers’ annual salaries by 20 per cent and implementing graduated salary reductions to staff.
"These reductions are expected to continue throughout the fiscal year and will be reassessed following review of the fiscal 2021 results," the company stated. It said the staff, executive and CEO's base salary concessions were reallocated to variable cash compensation associated with fiscal 2021 corporate performance. "These compensation reductions were taken in part to retain employees because we are prioritizing product development and support, both of which are important to our customers and to the long-term success of our business," the company said.
It also reported fourth-quarter revenue of $18.5-million down from $21.1-million a year ago. Analysts were expecting revenue of $19-million in the quarter ended March 31. Net income was $7.8-million or 9 cents per share versus $6-million or 7 cents a year earlier.
**
Spectral Medical Inc. (EDT-T) announced it has filed a preliminary short form prospectus in connection with a proposed marketed public offering of units of the company at a price of 60 cents each for total gross proceeds of up to $5-million.
Each unit will consist of one common share and one-half of one common share purchase warrant exercisable at a price of 75 cents for two years. It said the offering will be conducted by Paradigm Capital Inc.on a “best efforts” agency basis.
Spectral said it intends to use the net proceeds for its Phase III registration trial for its treatment for endotoxemic septic shock, including data analysis and submission of documentation to the U.S. FDA, and for general corporate and working capital purposes.
**
Canopy Rivers Inc. (RIV-T) announced a series of operational changes which it said is "designed to optimize its organizational structure, streamline operations, and preserve and maximize cash-on-hand."
The changes include: a "material reduction" in its operating cash outflows, including a reduction in headcount, directors' compensation, marketing expenses, and general corporate expenses of a minimum of 35 per cent; a focus on generating positive cash flow from operations for fiscal 2021 (year ended March 31, 2021); and a focus on maximizing returns on existing assets.
"We believe that sharpening our focus on financial discipline, operational excellence, and opportunistic capital deployment on our investment pipeline will yield long-term results for shareholders," said CEO Narbe Alexandrian. "In addition, the strategic utilization of our NCIB could be an important tool to provide attractive returns to shareholders."
**
Abacus Health Products, Inc. (ABCS-C) reported first-quarter revenue of U.S.$4.1-million, up from U.S.$3.8-million a year earlier. Its net loss was US$2.3-million or 11 cents U.S. per share versus a loss of U.S.$12.5-million or 79 cents U.S. a year earlier.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.