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Our roundup of Canadian small-caps of between $100-million and $3-billion in market capitalization making news

MTY Food Group Inc. (MTY-T) announced it will acquire BBQ Holdings Inc. (BBQ-N), the company behind restaurant brands such as Famous Dave’s and Barrio Queen, for US$200-milion.

The transaction is for US$17.25 per BBQ Holdings share and includes BBQ Holdings’ net debt. BBQ shares closed at US$11.73 on the Nasdaq on Monday. The shares are up 45 per cent in premarket trading on Tuesday.

BBQ Holdings is a franchisor and operator of casual and fast casual dining restaurants across 37 states in the U.S., Canada, and United Arab Emirates.


Recipe Unlimited Corp. (RECP-T), the company behind brands such as Swiss Chalet and Harvey’s, says it has received a takeover offer from investment group Fairfax Financial Holdings Ltd. (FFH-T) to be taken over for $20.73 per share, an offer valuing the restaurant chain at about $1.2-billion.

The offer price represents a 53.4 per cent premium to the company’s closing price on Monday.

Fairfax already owns about 23 per cent of the subordinate voting shares of Recipe, according to Bloomberg.

Recipe Group said there can be no assurance the letter of intent will turn into a definitive agreement or that the deal will get done.


Denison Mines Corp. (DML-T) announced a further proposal to buy UEX Corp. (UEX-T), topping a revised bid made last week by Uranium Energy Corp. (UEC-T).

Denison said it’s offering UEX shareholders 0.32 shares of Denison in exchange for each share of UEX held, which represents an implied purchase price of 51 cents per UEX share based on Monday’s close.

The price is a 7-per-cent premium to the price in the amended agreement between UEX and Uranium Energy Corp. announced Friday.

“We believe that the UEX assets are so complementary to our own portfolio and Athabasca Basin specialization that it would be short-sighted not to afford another opportunity for both Denison and UEX shareholders to prosper from this combination,” stated Denison CEO David Cates in a release.

In a release, Uranium Energy CEO Amir Adnani responded to the new Denison offer, stating that it’s “5 per cent more dilutive to its shareholders compared to UEC’s superior bid.”

He also stated that the Denison offer is “inferior as it introduces deal uncertainties for UEX shareholders, that is why we are extremely disappointed in the actions of the UEX board in delaying the shareholder vote.”

He said more than 38 per cent of eligible securities have already voted on the UEC proposal “with 93.4 per cent voting in favour.”


Bausch Health Companies Inc. (BHC-T) reported second-quarter revenues came in at US$1.97-billion as compared to US$2.1-billion in the second quarter of 2021. The expectation was for revenue to come in at US$2.04-billion

Its net loss was US$145-million or 40 US cents per share as compared to a loss of US$595-million or US$1.66 per share for the second quarter of 2021. The expectation was for EPS to come in at a loss of 10 US cents per share.

Adjusted net income was US$201-million, as compared to US$352-million for the second quarter of 2021.

The Laval, Que.-based company also issued full-year revenue guidance in the range of US$8.05-billion to US$8.22-billion compared to prior guidance of US$8.25-million to US$8.4-billion. The expectation is for revenue of US$8.3-billion.

Full-year adjusted EBITDA is expected to be in the range of US$3.02-billion to US$3.12-billion compared to prior guidance of US$3.225-billion to US$3.375-billion.

The company also said it remains committed to spinning off its eye health business Bausch + Lomb, which reported revenues of US$941-million for the second quarter, compared to US$934-million in the year-ago quarter.


Pet Valu Holdings Ltd. (PET-T) reported second-quarter system-wide sales of $312.5-million, an increase of 35 per cent versus the prior year. Revenue was $227.7-million, an increase from $182.2-million the prior year and ahead of expectations of $212.9-million.

Net income was $25.3-million or 35 cents per share, down from $44.3-million or 60 cents in the prior year. Adjusted net income came in at $28.1-million or 39 cents per share, ahead of expectations of 32 cents per share. The result compared to an adjusted net income of $8.7-million or 12 cent in the year-ago quarter.

In its outlook, the company said it now expects 2022 revenue between $912-million and $928-million, driven by same-store sales growth between 13 and 15 per cent and 35 to 45 new store openings. The expectation is for full-year revenue of $889.5-million.


Martinrea International Inc. (MRE-T) reported sales of $1,113.9- million in the second quarter ended June 30, up 25.9 per cent from $884.9-million a year ago. The result was ahead of expectations of $1,068.3-million, according to S&P Capital IQ

Net income came in at $25.5-million or 32 cents per share compared to net income of $24-million or 30 cents a year ago. The expectation was for earnings to come in at 28 cents per share.


Westport Fuel Systems Inc. (WPRT-T) reported second-quarter revenue of US$80-million, up 1 per cent compared to the same period in 2021. The expectation was for revenue of US$76.6-million in the latest quarter.

Its net loss of US$11.6-million or 7 US cents per share, which was in line with expectations and compared to net income of US$17.2-million for 11 US cents for the same quarter last year.


K-Bro Linen Inc. (KBL-T) reported second-quarter revenue of $70.9-million up from $52.7-million a year ago. The expectation was for revenue of $68-million, according to S&P Capital IQ.

Net earnings came in at $1.6-million or 15 cents per share versus net earnings of $3.4-million or 32 cents a year ago.


Dorel Industries Inc. (DII-B-T; DII-A-T) reported second-quarter revenue was US$427.8-million, compared to US$447.6-million for the same period a year ago. The expectation was for revenue to come in at $468.3-million.

Its net loss from continuing operations was US$13.6 -million or 42 US cents per share, compared to a loss of US$1.4-million or 4 US cents per share last year.

The company said its adjusted net loss from continuing operations was US$11.6-million or 36 US cents per share, compared to US$590,000 or 2 US cents per share a year ago.


EcoSynthetix Inc. (ECO-T) reported sales of US$4.2-million for the second quarter compared to US$4.9-million a year ago.

Its net loss was US$676,828 or 1 US cent per share, which was in line with expectations and compared to a loss of US$729,097 or 1 US cent per share a year ago.


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