Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Wajax Corp. (WJX-T) reported fourth-quarter revenue increased to $403.9-million from $389.8-million in the fourth quarter of 2018. Net earnings of $12.2-million or 61 cents per share compared to $6.1-million or 31 cents per share in the same period of 2018. Adjusted net earnings of $10.1-million or 51 cents per share in the fourth quarter compared to $8.3-million or 42 cents per share in the same period of 2018.
Analysts were expecting adjusted earnings of 50 cents and revenue of $398.2-million.
Artis Real Estate Investment Trust (AX.UN-T) issued a statement to confirm that, as part of its previously announced strategic review process, the special committee formed by its board of trustees “is currently in discussions with potential suitors with respect to a potential transaction involving the REIT.”
The company said the special committee hasn't made any decisions related to any strategic alternatives "at this time," and said there can be no assurance that the special committee's discussions with potential suitors will result in a transaction.
Interfor Corp. (IFP-T) announced it has priced US$50-million in long-term debt financing with Prudential Capital Group, which is in addition to the US$50-million that was previously announced on Feb. 18, for a total of US$100-million.
"The additional senior secured notes will carry an annual interest rate of 3.25 per cent and have a final maturity in 2030," the company said. "The financing is expected to close during March and the proceeds will be used for general corporate purposes."
Pinnacle Renewable Energy (PL-T) reported revenue of $91.5-million in the fourth quarter, compared to $103.7-million in revenue in the same quarter of 2018. The company reported a net loss of $3.2-million or 12 cents per share compared to a net profit of $7.4-million or 22 cents a year earlier. Adjusted EBITDA totalled $11.3-million compared to $13.8-million a year earlier.
Analysts were expecting revenue of $100.9-million and a loss of 2 cents.
Village Farms International, Inc. (VFF-T; VFF-Q) announced a settlement agreement with Emerald Health Therapeutics (EMH-X) related to all outstanding disputes over their Pure Sunfarms Corp joint venture.
Under the terms of the settlement agreement, the 5,940,000 common shares of Pure Sunfarms that were placed in escrow pending Emerald’s $5.94 million equity contribution to Pure Sunfarms (originally due in November 2019) will be cancelled, effective Nov. 19, and Village Farms and Emerald will cease arbitration proceedings on the matter.
Other conditions see Emerald will forfeit and waive repayment by Pure Sunfarms of its outstanding $13.-million shareholder loan to Pure Sunfarms (plus accrued interest of $1.1-million) and Emerald will issue a promissory note to Pure Sunfarms in the amount of $952,237.
Pure Sunfarms will also release Emerald from all liability arising from their supply agreement, among other conditions. The result is that Village Farms will have owned 53.5 per cent of Pure Sunfarms and Emerald will have owned 46.5 per cent of Pure Sunfarms.
In addition, Village Farms has made an additional equity contribution to Pure Sunfarms of $8-million in 2020.
Tilray Inc. (TLRY-Q) reported a bigger quarterly loss on Monday, hurt by an impairment charge related to its assets and higher costs, as oversupply and other challenges weigh on the Canadian marijuana market. The company’s shares fell 9.8 per cent in after-market trading.
The country legalized recreational cannabis in October 2018, but profits remain elusive for most marijuana companies. Canadian weed producers have been hit by fewer-than-expected new stores, low prices and oversupply.
Last month, Aurora Cannabis announced plans to book up to $1-billion (US$749.96 million) in impairment charges and issued a bleak outlook, as the company struggles with high costs.
“Like our peers, we have faced industry challenges, but we remain committed to driving long-term value for our shareholders,” Tilray’s Chief Executive Officer Brendan Kennedy said.
Tilray recorded non-cash charges of US$112.1 million on impairments related largely to a revenue-sharing deal with shoemaker Authentic Brands Group.
In February, the company said it had cut 10 per cent of its 1,443 workforce as part of a global restructuring to reduce costs and achieve profitability.
General and administrative expenses, however, more than doubled in the latest reported quarter.
Net loss widened to US$219.1 million, or US$2.14 per share, in the fourth quarter ended Dec. 31, from US$31.0 million, or 33 cents per share, a year earlier.
Revenue more than tripled to US$46.9 million.
The company said it has been unable to complete its financial statements for fiscal 2019 “due to a continuing review by the audit committee of the company’s board of directors, with the assistance of outside counsel and forensic accountants, of several bulk resin purchases and sales of products through the wholesale channel and the appropriateness of the recognition of revenue from those transactions.”
Clearwater Seafoods Inc. (CLR-T) reported fourth-quarter sales of $167.1-million up from $159.8-million a year earlier. Its net loss attributable to shareholders was $17.6-million or 27 cents per share versus a loss of $12.3-million or 19 cents a year earlier.
Adjusted earnings were $8.3-million or 13 cents versus adjusted earnings of $4.8-million or 7 cents a year earlier. Analysts were expecting adjusted EPS of 10 cents and revenue of $173-million.
His management responsibilities will be taken up by CEO and co-founder Charlie Bachtell "as well as other members of the company’s recently strengthened leadership team," the company stated.
Trevali Mining Corp. (TV-T) announced that Gerbrand Van Heerden has departed as the company’s chief financial officer. Mr. Van Heerden served as CFO since June 1, 2018. Matthew Quinlan has been appointed Interim CFO.