Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Western Forest Products Inc. (WEF-T) announced a temporary curtailment at its Ladysmith sawmill, which it stated in a release was “in part due to action taken by the United Steelworkers Local 1-1937 which has impeded log supply to the mill.” The company said operations “will be curtailed once log supply is depleted, which is expected to occur on or before August 1.”
“We’ve had to make the decision to temporarily curtail operations at Ladysmith due to a lack of log supply in part due to the United Steelworkers’ decision to take strike action and prevent the movement of logs, amidst challenging market conditions,” said Don Demens, CEO of Western.
Alaris Royalty Corp. (AD-T) reported second-quarter revenue of $27.4-million down from $28.4-million a year ago. The company said the difference of 75 cents versus 78 cents a year ago was due to the comparable period including $4.3-million of one-time distributions received on the redemption of Labstat. Analysts were expecting revenue of $26.6-million.
Normalizing for the three-month period ended June 30, revenue increased 13.6 per cent, the company stated.
Basic earnings came in at $22-million or 60 cents per share down from $28.8-million or 73 cents a year ago.
theScore, Inc. (SCR-X) reported third-quarter revenue of $8.5-million compared to $7.2-million for the same period last year. Its EBITDA loss for the three months ended May 31, was $1.1-million versus a loss of $45,000 for the same period last year.
The company said the increase in EBITDA loss was due mostly to additional expenses related to the ongoing development of its sports betting business. Its net loss was $1.7-million or a penny per share versus a loss of $894,000 or nil per share a year ago.
Frankly Inc. (TLK-T) announced an agreement to acquire Vemba, a video asset management, syndication and monetization platform in a move the company says strengthens its position as “the most advanced over-the-top (OTT) video management and cloud playout system for broadcasters.”
"Vemba has developed unique capabilities that simplify the management, syndication, tracking, and monetization of video assets delivered anywhere," said Frankly's CEO Lou Schwartz. "Their strengths in assembly and scheduling of discrete linear video streams support Frankly's focus on live, linear video to any connected device. Together with Vemba, we plan to create an unmatched offering of live and video-on-demand asset management, syndication and monetization for OTT delivery."
Western Energy Services Corp. (WRG-T) reported second-quarter revenue of $37.7-million up from $33.1-million a year earlier. The company said it incurred a net loss of $10.1-million in the second quarter or 11 cents per share as compared to a net loss of $15.5-million or 17 cents per share a year earlier. Analysts were expecting revenue to come in at $33.1-million and a loss of 15 cents.
British tobacco giant Imperial Brands PLC is investing $123-million in Auxly Cannabis Group Inc. (XLY-X) by way of convertible debentures that could give Imperial a 19.9-per-cent stake in Auxly if the debentures are converted.
As part of the deal, Auxly will gain rights to licence Imperial’s vaping technology and access to technology developed by Nerudia, a subsidiary of Imperial focused on e-cigarettes.
The deal is the first significant investment in a Canadian licensed producer by an international consumer products company since America tobacco firm Altria Group, Inc. invested $2.4-billion into Cronos Group Inc. last December. It comes amid a push by tobacco firms to diversify away from cigarettes and into vaping products.
The convertible debentures – a type of debt that can be converted into common shares at a pre-set price – will bear 4 per cent interest for three years, and be convertible into Auxly shares at $0.81 per share. The conversion price represents an 11 per cent premium to Auxly’s closing share price on July 24.
Imperial will have the right to nominate one board member to Auxly’s five-member board. The head of Imperial’s Product Stewardship and Health Group will also sit on Auxly’s newly created safety board, which will oversee product safety, efficacy and quality.
Crescent Point Energy Corp. (CPG-T; CPG-N) reported adjusted funds flow totaled $503.8-million or 92 cents per share during the second quarter, up from $500.3-million or 91 cents a year earlier. Net income was $198.6-million or 36 cents per share versus a loss of $166.2-million or 30 cents a year earlier.
Well Health Technologies Corp. (WELL-X) announced a $12-million bought-deal private placement of special warrants. The company said it has an agreement with a syndicate of underwriters led by GMP Securities L.P. for an offering of about 8.3 million special warrants at a price of $1.45. It said the net proceeds of the offering are expected to be used “for future acquisitions, organic growth investments, working capital and general corporate purposes.”