Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Roots Corp. (ROOT-T) reported sales of $76.3-million for its third quarter ended Oct. 30, up from $72.9-million a year ago. “This comes despite a significant reduction in promotional days, and inventory delays resulting in supply chain disruptions,” the company stated.
Analysts were expecting revenue of $78.3-million for the latest quarter.
Net income was $10.8-million or 25 cents per share, compared to net income of $10.3-million or 25 cents per share a year ago. Adjusted net income was $11.7-million or 28 cents per share, an improvement from $11.2-million or 27 per share a year earlier, the company stated. Analysts were expecting adjusted earnings of 21 cents per share.
Hexo Corp. (HEXO-T) reported a jump in first-quarter revenue year-over-year alongside a wider loss and announced a new strategic plan that includes management changes and “actively evaluating alternatives in a manner which maximizes shareholder value.”
The company said its strategic review will include reducing manufacturing and production costs, streamlining and simplifying the organizational structure, realizing “cost synergies” from acquisitions and recent plant closures and a focus on revenue management through “more disciplined pricing.”
It said the initiatives are expected to generate incremental cash flow of $37.5-million in fiscal 2022 and an additional $135-million in 2023 for a total of $175-million over the two years.
As part of the management changes, the company said its chief financial officer Trent MacDonald will step down in March. The company also appointed John Bell as the new board chair, effective immediately and said current chair Michael Munzar has stepped down.
Total net revenue increased $50.2-million for the quarter ended Oct. 31 up from $29.5-million from the same time a year ago. Analysts were expecting revenue of $54.1-million. Its net loss was $116.9-million versus a loss of $4.2-million a year ago.
The gold stream entitles Wheaton to 8 per cent of the gold produced from Blackwater, reducing to 4 per cent of gold production once approximately 280,000 ounces of gold have been delivered to Wheaton. Gold delivered under the stream is subject to an ongoing cash price equal to 35 per cent of the spot gold price, payable to Artemis Gold Inc, the company stated.
Artemis bought the mine from New Gold last year, but New Gold retained the gold stream as partial consideration for the divestiture. “This transaction highlights another milestone for New Gold as we continue to surface value from the divestment of the Blackwater Project,” stated CEO Renaud Adams.
The company, which made the announcement after markets closed on Monday, said it intends to use the net proceeds primarily to fund research and development activities, as well as for general and administrative expenses and working capital needs.
The news came after the company announced successful efficacy results for its treatment for chronic coughing before markets opened on Monday, which sent its shares soaring by as much as 75 per cent. Bellus stock finished the day at US$8.30, up 48 per cent on the Nasdaq.
Analysts were expecting revenue of $110-million, according to S&P Capital IQ. The company, which provides outpatient diagnostic imaging services in the United States, said its net loss was $1.3-million for the quarter versus a loss of $7.2-million a year ago.
Akumin also adjusted its 2021 guidance for revenue to range from $421-million to $428-million. The expectation is for revenue to come in at $416.9-million.
The shares will continue to trade the Nasdaq. The company said it believes the trading volume of its common shares on the TSX “no longer justifies the expense and administrative requirements associated with maintaining a TSX listing” and that the Nasdaq provides its shareholders with “sufficient liquidity, and the cost savings from the elimination of TSX listing fees and associated professional fees, as well as the savings in time and effort of management required to maintain a dual listing, can be redirected to initiatives intended to generate shareholder value.”
The Lion Electric Company (LEV-T), which makes all-electric medium and heavy-duty urban vehicles, announced that it has received a conditional purchase order for 200 all-electric LionC school buses from Langs Bus Lines, with deliveries to begin gradually in 2022, through to 2026.
The purchase order is conditional upon the satisfactory grant of non-repayable contributions to Langs Bus Lines under Infrastructure Canada’s Zero-Emission Transit Fund (ZETF), which sees Ottawa aim to invest $2.75 billion over five years to support public transit and school bus operators in the transition to electrification.
Argonaut Gold Inc. (AR-T) announced that its founder Pete Dougherty has ceased to be the president and CEO of the company, effective immediately. The board has started a search to replace these roles “and is working in real-time to put interim leadership in place.”
The company said the acquisition represents an opportunity for its wealth management business in the UK and Crown Dependencies (CGWM UK) “to build upon its exceptional growth to date and advance its priority of becoming an integrated wealth manager of scale.”
Mind Medicine (MindMed) Inc. (MMED-NEO) announced that Robert Barrow was appointed as CEO and as a member of the board, effective immediately. Mr. Barrow previously served as interim CEO and chief development officer of MindMed.
Perry Dellelce has stepped down from his role as director and chair of the board, effective immediately. Carol Vallone becomes chair and Andreas Krebs vice-chair, the company stated.
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