Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Great Canadian Gaming Corp. (GC-T) reported revenues of $273.8-million in the first quarter, a decrease of 10 per cent when compared to the same period in the prior year. Analysts were expecting revenue of $248.9-million.
The company said the drop was primarily due to the closure of all gaming facilities on March 16, "in response to the pandemic, partially offset by improved revenues during the quarter in the period prior to the gaming facility closures."
Net earnings from continuing operations of $19.2-million in the first quarter decreased by $11.8-million when compared to the same period in 2019, the company stated.
Sleep Country Canada Inc. (ZZZ-T) reported first-quarter revenue increased to $151.6-million from $149.3-million a year ago. Same-store sales decreased by 0.9 per cent compared to a year earlier. Net income was $5-million or 14 cents per share versus $7.8-million or 21 cents a year earlier. Adjusted EPS came in at 17 cents versus 23 cents a year ago.
Sleep Country also said it's suspending its dividend and normal course issuer bid program and will resume both initiatives "upon return to normal operating conditions."
Its also expanding its senior secured credit agreement with an incremental $50-million. The company also said it's deferring 100 per cent of the board's unpaid cash compensation and deferring 50 per cent of the salaries of the CEO, president and Dormez-vous and chief business development officer, and 25 per cent of the salaries of remaining named executive officers.
MEG Energy Corp. (MEG-T) reported revenue of $665-million in the first quarter, down from $919-million a year ago. Analysts were expecting revenue of $700.7-million. Its net loss was $284-million or 95 cents per share versus a loss of $48-million or 16 cents a year earlier.
MEG also said it has taken further steps to reduce its 2020 full year non-energy operating costs and general and administrative (G&A) expense. It said non-energy operating costs are now targeted at $140-million to $150-million, which is about 12-per-cent lower than original guidance. G&A is now targeted at $52.5-million to $55-million, or approximately 16-per-cent lower than original guidance. "The majority of these cost reductions were a result of a reduction in staffing levels and rationalization of ongoing administrative costs," the company stated.
Net earnings of $4.1-million or 20 cents per share compared to $7.9-million, or 39 cents per share in the same period of 2019. Adjusted net earnings of $5.8-million or 29 cents per share versus $8.7-million or 43 cents per share in the same period of 2019.
Clarke Inc. (CKI-T) announced that Michael Rapps has resigned as president, CEO and a director of Clarke. Mr. Rapps will remain with Clarke through June 2020, the company stated. George Armoyan, executive chairman of Clarke, will assume the responsibilities of president and CEO, the company stated.
AirBoss of America Corp. (BOS-T) announced that its chief financial officer Daniel Gagnon will be leaving the company as of June 12 to “pursue other projects while making more time for his family.” Mr. Gagnon has committed to staying with the organization in order to support an orderly transition to a new CFO, the company stated.
Americas Gold and Silver Corp. (USA-T) announced a $25-million bought-deal offering. It has an agreement with a syndicate of underwriters co-led by Cormark Securities Inc. and Desjardins Capital Markets, which has agreed to buy 8,930,000 common shares for $2.80 each. The stock closed at $2.90 on Monday.
"Strategic investors led by Pierre Lassonde and Eric Sprott have indicated that they intend to subscribe for such number of common shares from the offering totalling $8.75-million," the company stated.
The proceeds will be used for working capital and general corporate purposes, which the company said "may include the exploration, development and/or improvement of the company's existing mine properties, including those relating to bringing Relief Canyon into commercial production. "
"Prior to Quarterhill, Paul had a proven track-record of success leading global software businesses," the company stated. He is currently CEO of Carta Worldwide, a global modern card issuing platform, and was CEO of DisclosureNet, which was acquired by Certent in 2016.
Artis Real Estate Investment Trust (AX.UN-T) announced that its board has concluded the previously announced strategic review by a special committee of independent members and has determined that “in light of the current market conditions and global uncertainty, it is not in the best interests of the REIT to pursue a strategic transaction at this time.”
The company said the board will remain open to considering strategic opportunities for the REIT in the future.
The company said the initiatives will result in a 10-per-cent reduction of the company's workforce, or approximately 225 employees, of which 125 are located in Quebec. As a result, the company said it will be closing its plant that was formerly known as Alta Precision.
"While our defence activities have been generally insulated from the global pandemic, we are seeing lower demand for our commercial products. We must, therefore, take the difficult but necessary decision to rationalize our cost structure by adjusting our manufacturing capacity to the current unprecedented environment. We regret the impact these actions will have on affected employees and will put in place appropriate measures to support them," said Martin Brassard, CEO.
The initiatives will result in a non-recurring charge totalling approximately $12-million before taxes accounted for in the first quarter of fiscal 2021.
Well Health Technologies Corp. (WELL-T) announced a $12.5-million bought-deal financing. It has an agreement where Eight Capital and Stifel GMP, as co-lead agents and joint bookrunners, together with a syndicate of underwriters, will purchase 5,682,000 common shares of the company for $2.20 each. The stock closed at $2.41 on Monday.
The company said intends to use the net proceeds for mergers and acquisitions and general working capital.
“Well’s growth and exposure to the telehealth marketplace has been dramatic and very positive. We are now seeing elevated activity in solid incremental M&A opportunities in both Canada and the US and want to be in a position where can move quickly if required," stated CEO Hamed Shahbazi. "Given this, we felt that it was prudent to raise additional capital to support our growth objectives.”
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