Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
DHX Media Ltd. (DHX-T; DHXM-Q), which is changing its name to WildBrain, announced a $60-million rights offering after markets closed Wednesday. The company said it intends to use $50-million of the proceeds to reduce its term loan, and the remaining $10-million, after offering expenses, for general working capital purposes.
Exfo Inc. (EXFO-Q; EXF-T) reported fourth-quarter sales increased 1.4 per cent to US$70.2-million versus the same quarter last year, which was ahead of expectations of US$68.7-million. Its net loss was US$0.2 million, or zero cents per share, compared to aloss of US$4-million, or 7 US cents per share, in the fourth quarter of 2018. Analysts were expecting a loss of a penny per share in the quarter.
Village Farms International, Inc. (VFF-T; VFF-Q) announced a $25-million bought-deal financing. It has an agreement with a syndicate of underwriters that has agreed to purchase 2,660,000 common shares for $9.40 each. The company intends to use the net proceeds for working capital and general corporate purposes.
“Theratechnologies’ NASDAQ listing is yet another step forward for our company with growing sales from two commercialized products and a strong pipeline,” said Luc Tanguay, CEO of Theratechnologies, in a release.
Hexo Corp (HEXO-T; HEXO-N) shares fell 18 per cent in pre-market trading after the company said fourth-quarter revenue "is below our expectation and guidance, primarily due to lower than expected product sell through,” CEO and co-founder Sebastien St-Louis said in a release.
Hexo said it expects net revenue for the fourth quarter to be approximately $14.5-million to $16.5-million, which is below the FactSet consensus of $24.8-million. Net revenue for the year is expected to be approximately $46.5-million to $48.5-million.
“While we are disappointed with these results, we are making significant changes to our sales and operations strategy to drive future results," Mr. St-Louis stated.
The company also said it was also withdrawing its fiscal 2020 financial outlook, which Mr. St-Louis called "a difficult decision," citing "uncertainties in the marketplace."
"Slower than expected store rollouts, a delay in government approval for cannabis derivative products and early signs of pricing pressure are being felt nationally," the company said in a statement. "The delay in retail store openings in our major markets has meant that the access to a majority of the target customers has been limited."
The company plans to release its complete financial results for the year ended July 31 on Oct. 24.