Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Canada’s second-largest airline said net profit fell to $29.2-million or 26 cents per share in the fourth quarter ended Dec. 31, from $47.8-million, or 41 cents per share, a year earlier.
Revenue rose to $1.19-billion from $1.12-billion, which was in line with expectations. Earnings were expected to come in at 14 cents per share in the latest quarter.
Ballard Power Systems (BLDP-Q; BLDP-T) said its European subsidiary has signed framework agreements for the provision of FCgen®-H2PM direct hydrogen backup power systems with Eniig and Fibia A/S, operators of fiber optic broadband networks in Denmark. Ballard also said it received initial orders for a total of 30 FCgen®-H2PM 5-kilowatt (kW) systems, including installation, hydrogen storage and power management equipment. It said the agreements have a total value of approximately $1.2-million.
In the financing, CIBC Capital Markets and Eight Capital are the joint bookrunners that have agreed to purchase, together with a syndicate of underwriters, 11.5 million subordinated voting shares at a price of $4.80 each for gross proceeds of $55-million. Canopy Growth will purchase a minimum of 6.25 million subordinated voting shares on a private placement basis for the same price, or $30-million total. Canopy Growth's stake in Canopy Rivers will increase to 27.3 per cent from about 26.5 per cent.
Canopy Rivers said it intends to use the net proceeds "for follow-on investments in existing portfolio companies, new domestic and international investments, working capital and general corporate purposes."
WPT Industrial Real Estate Investment Trust (WIR.U-T) said it’s raising US$135-milllion in a bought-deal financing. It has an agreement to sell to a syndicate of underwriters, co-led by Desjardins Capital Markets, RBC Capital Markets and BMO Capital Markets, 10 million trust units at a price of US$13.50 per unit.
The REIT stated that it intends to use the net proceeds as an available source of funding for acquisitions, as well as other initiatives.
“The offering enhances our liquidity and balance sheet flexibility, allowing the REIT to continue actively expanding the footprint of its high-quality distribution and logistics portfolio,” stated CEO Scott Frederiksen.
Its net income was US$1.8-million or 4 cents per share versus a loss of US$300,000 or a penny per share a year earlier. Analysts were expecting earnings of 4 cents per share in the latest quarter.
Sean Dollinger, the former CEO of Namaste Technologies Inc. (N-X) who was recently fired, issued a statement on Tuesday saying he is “deeply sorry and disappointed that this day has arrived after having devoted years and countless hours to build Namaste Technologies Inc. into a successful company alongside co-founder Kory Zelickson.”
The statement goes on to say: "What saddens me most is that for the time being, I will not be able to continue steering the incredible journey of growth for the company's wonderful shareholders and investors, who believed in me and what we were creating."
Mr. Dollinger said he intends "to begin setting the record straight and clearing any misconceptions caused by the inaccurate allegations levelled against me. In the meantime, I continue to be committed to the company as a director on the board and as its largest shareholder. I also support the newly appointed chief executive and chief strategy officers."
Altius Minerals Corp. (ALS-T) issued a release outlining “shareholder concerns” to Labrador Iron Ore Royalty Corp. (LIF-T). Altius said the concerns were outlined in a letter address to the board of LIORC during a meeting on Jan. 25.
"The primary purpose of the meeting was to request that the board of LIORC pay out excess cash on its balance sheet and resume a commitment to its passive, flow-through business mandate," the release states. "Altius’ investment in LIORC is predicated upon LIORC adhering to a commitment to serve as a passive flow-through vehicle for royalties and equity dividends related to the operations of the Iron Ore Company of Canada. We explained during the meeting that several recent decisions and actions undertaken by LIORC contradict this commitment in our opinion and have created considerable uncertainty for Altius and other shareholders."
Altius said it also repeated a suggestion that "the segregation of LIORC’s royalty and operating level equity interests could provide significant value creation and risk-reward management benefits to all of its shareholders."
Altius said it received a response letter on Feb. 1 from the CEO of LIORC "that unfortunately failed to provide any degree of commitment or intent to satisfy either specific request, including the payout of recently withheld excess cash amounts." Altius said it will now consider "further options that may be available to it as a concerned shareholder."
Summit Industrial Income REIT (SMU.UN-T) announced it will acquire a logistics facility in Montreal for $23-million as part of a sale-leaseback transaction from the owner, a private Montreal company specializing in furniture design, manufacturing and distribution. It will finance the deal using cash from its operating facility.
“We are pleased to expand our presence in Montreal, one of Canada’s strongest industrial markets,” stated CEO Paul Dykeman. “The re-development opportunity on this property will also generate very accretive returns for our Unitholders over the longer term.”