Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move.
Lucara Diamond Corp. (LUC-T) reported that its final diamond tender of 2019 generated sales proceeds of US$52.9-million, 16-per-cent higher than expected, and achieved an average price of US$548 per carat.
“Market pricing improvements were noted in all size classes,” the company stated. Lucara said the December tender puts its 2019 revenue at US$192.5-million, exceeding the 2019 revenue guidance of US$170-to-US$180 million.
"Though it is too early to call a trend, prices achieved in our final sale of the year reflect a stronger, more stabilized market environment and continued strong demand for Karowe diamonds," stated CEO Eira Thomas. "As a result, we have exceeded our revenue guidance for 2019."
Uni-Select Inc. (UNS-T) announced the completion of a private placement offering of $125-million principal amount of convertible senior subordinated unsecured debentures. Birch Hill Equity Partners Management Inc., as shareholder and lead investor in the offering, subscribed for $75-million principal amount of debentures, the company stated. The remaining $50-million was purchased by institutional investors.
Uni-Select said it intends to use the net proceeds to "reduce borrowings under its senior debt credit facility and to pursue strategic growth opportunities and cost reduction initiatives."
The company also said its special committee doing a review of strategic alternatives has concluded its work and the board "has determined that modifying the capital structure with this financing and positioning the corporation to pursue identified growth opportunities and cost reduction initiatives is the best alternative for maximizing value for shareholders." The company it and the board are still open to evaluating future opportunities "that align with its business strategies and enhance shareholder value."
Uni-Select also said it will take a non-recurring, non-cash goodwill impairment charge in the fourth quarter of between US$45-million and US$50-million, “related to a portion of the goodwill of its operations in the U.K.”
Theratechnologies Inc. (TH-T; THTX-Q) said it expects to report consolidated revenues of approximately US$63.3-million for fiscal 2019 compared to US$45.2-million for the previous year.
The company said consolidated revenues of approximately US$16.5-million for the fourth quarter of 2019 represent an increase of 17.7 per cent compared a year earlier.
For fiscal 2020, Theratechnologies expects revenues to reach between US$83-million to US$87-million, an increase of 31-to-37-per cent from fiscal 2019.
Aecon Group Inc. (ARE-T) announced that Fraser Crossing Partners, a 50-50 joint venture between Aecon and Acciona, has been selected by the province of B.C. as the preferred proponent for the Pattullo Bridge Replacement Project.
"Aecon looks forward to playing an important role in connecting the communities of New Westminster, Surrey and the surrounding area," said Jean-Louis Servranckx, CEO of Aecon. "This selection illustrates Aecon's recognized reputation as a partner-of-choice for large-scale, critical infrastructure projects and further expands our solid, diverse presence in Western Canada."
Martinrea International Inc. (MRE-T) announced an agreement to acquire the structural components for passenger cars operations of Metalsa S.A. de C.V. for about US$19.5-million in cash, inclusive of working capital and on a debt-free basis.
The operations specialize in a wide variety of metal forming technologies, including chassis components such as cradles, control arms, and trailing arms; body components such as side rails, A and B pillars, door beams, wheel housings and bumpers; and several other components such as fuel tanks, the company stated.
It said the operations to be acquired cover six plants in Germany, the U.S., Mexico, South Africa and two in China. The assets to be acquired are expected to generate sales in 2020 of approximately C$400-million, the company said.