Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Canadian department store operator Hudson’s Bay Co (HBC-T) reported a bigger third-quarter loss on Tuesday, hit by higher discounts at luxury chain Sakes Fifth Avenue and weak sales at its namesake stores.
The company has been trying to fend off fierce competition from e-commerce retailers including Amazon.com Inc as well as from other department stores Macy’s and Nordstrom Inc.
Hudson’s Bay has been shutting stores and divesting assets, including its Lord + Taylor department store business, to shore up finances and focus on its luxury department store chain Saks Fifth Avenue and Hudson’s Bay in Canada.
“Across the industry, there was a pullback among luxury consumers, allowing shoppers to more frequently take advantage of markdowns, which ultimately reduced full-price sales,” Helena Foulkes, Hudson’s Bay chief executive officer said in a statement.
Foulkes added that the company’s 15 per cent growth in digital sales, tight lid on cost and inventory were not enough to deliver the financial performance it wanted in the third quarter.
Comparable sales at Saks Fifth Avenue fell 2.3 per cent in the quarter, while that at its namesake stores decreased 3.9 per cent.
The company’s net loss widened to $226 million, or $1.23 per share, in the quarter ended Nov. 2, from $161 million, or 88 cents per share, a year earlier.
Total revenue fell to $1.84 billion from $1.89 billion.
The company in October agreed to a $1.9 billion go-private deal with a consortium led by its chairman Richard Baker, but is facing resistance from minority shareholders including Catalyst Capital Group, which has offered a higher counter bid.
Ballard Power Systems (BLDP-Q; BLDP-T) announced that it has signed a product development agreement with Hydrogene de France (HDF Energy), an independent power producer dedicated to renewable power generation. Ballard said the agreement is for the development and integration of a multi-megawatt (MW) scale fuel cell system into HDF Energy’s Renewstable® power plant designed for stationary power applications.
Ballard said the transaction is subject to completion of definitive agreements and is reliant in part on the Centrale Electricité de l'Ouest Guyanais (CEOG) project and is "subject to customary conditions for multi-year programs of this scope, including but not limited to permitting and regulatory approvals, financings and project execution activities."
Tricon Capital Group Inc. (TCN-T) announced that its single-family rental joint venture TAH-JV1 has acquired a portfolio of 708 homes located in Nashville for US$210-million. It said the price was funded by a combination of JV equity and debt under the JV’s existing credit facility.
Tricon said the acquisition increases its Nashville portfolio under management to approximately 850 homes and provides "economies of scale and diversification to Tricon's single-family rental business."
The company said Nashville now represents approximately 4 per cent of its overall managed portfolio of homes.
Recipe Unlimited Corp. (RECP-T) announced that its executive chairman Bill Gregson will be retiring at the end of the year. Paul Rivett, president of Fairfax Financial Holdings Ltd., will assume the role as chairman of the company on Jan. 1.
European Residential Real Estate Investment Trust (ERE.UN-X) announced plans to raise $105-million in a bought-deal financing. The REIT said it plans to sell 22,582,000 trust units at a price of $4.65 each to a syndicate of underwriters led by RBC Capital Markets.
ERES also said it has agreed to acquire a Netherlands property for approximately €105-million (about $154-million Canadian) and agreed on the disposition of one of its legacy commercial properties in Düsseldorf, Germany, for approximately €17-million (about $25-million Canadian).
Firm Capital Property Trust (FCD.UN-T) announced a $20-million bought-deal financing. It has an agreement with a syndicate of underwriters led by Canaccord Genuity, CIBC Capital Markets, and TD Securities, to issue to the public 3 million trust units at a price of $6.75 each. The net proceeds will be used to repay debt and for working capital and general trust purposes, the company stated.
NFI Group Inc. (NFI-T) says California’s AC Transit has approved the purchase of 36 of its U.S.-based Motor Coach Industries subsidiary’s new, more accessible D45 CRT LE commuter coaches. “The order is a result of a recent competitive procurement for up to 137 D45 CRT LE coaches, of which 50 can be procured for AC Transit’s use with the remaining 87 options being available for use by other transit authorities throughout the United States,” the company stated.
The Intertain Group Limited (ITX-T) announced that it has been advised by the Toronto Stock Exchange that trading of its Class C non-voting exchangeable shares will restart when the market opens today.
The TSX previously halted trading of the exchangeable shares on Dec. 3 as a result of the withdrawal of the shares from the Canadian Depositary for Securities Limited (CDS).
"The company understands that the withdrawal of the exchangeable shares from CDS was intended to provide adequate time for holders to deposit the documents necessary to receive ordinary shares of Gamesys Group plc in a timely manner following the previously scheduled redemption date for the Exchangeable Shares on January 13, 2020," the company stated.
Each unit will consist of one common share in the capital of the company and one common share purchase warrant. Each warrant will be exercisable to acquire one common share for 24 months at an exercise price of CAD$3.25 each.
The company said it intends to use the proceeds to speed up the completion of the New Jersey cultivation and processing facilities “and to make the previously announced January 2020 contingent purchase price payment related to the acquisition of Ilera Healthcare. Proceeds may also be used for working capital and general corporate purposes.”