Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Well Health Technologies Corp. (WELL-T) announced it’s buying Cycura Inc., a private Ontario corporation for about $2.55-million, which includes the assets related to Cycura’s Services Division, which provides various cybersecurity offerings.
"Our over-arching objective at Well is to allocate capital to themes and opportunities that benefit from the digitization of healthcare; as such, we see cybersecurity as a compelling opportunity for Well's capital allocation program due to the quality of revenues and the burgeoning growth in the industry," said Hamed Shahbazi, chairman and CEO.
Well said it plans to fund the acquisition entirely with cash on hand.
The plans include a proposed recapitalization plan that involves a raise of $100-million in committed new equity, reduction of overall debt by approximately $275-million, and "materially lower" annual cash interest payments.
It also includes a renewed slate of seven board directors, of which at least four will be new. They will stand for election to the board at the company’s annual general meeting on Aug. 11.
“This comprehensive plan to strengthen and de-risk our business will result in a much stronger Just Energy, creating a sustainable capital structure and allowing our team to focus on driving our business and serving our clients,” said Just Energy’s CEO R. Scott Gahn.
Net income was $2.8-million or 5 cents per share compared to a net loss of $3.6-million or 6 cents per share a year ago.
Analysts were expecting revenue of $81.8-million and a loss of 5 cents per share.
DAVIDsTEA Inc. (DTEA-Q) announced that it is implementing a restructuring plan under the Companies’ Creditors Arrangement Act (Canada) to “accelerate its transition to an online retailer and wholesaler of high-quality tea and accessories.”
The company said it expects that its application today by the Quebec Superior Court. The company said it intends to apply for similar orders for its wholly-owned U.S. subsidiary under Chapter 15 of the United States Bankruptcy Code.
During the restructuring process, the company said it will continue to operate its online business and its wholesale distribution channel, through which it sells a selection of its products in grocery stores and pharmacies across Canada.
“The company will work to complete its restructuring in a timely fashion, better positioned for long-term growth,” it stated, adding that it doesn’t expect to issue any shares in the restructuring process or that the restructuring will have any impact on its share structure.
Calian Group Ltd. (CGY-T) announced the acquisition of Comprehensive Training Solutions International (CTS), a training firm based in Stavanger, Norway that provides training exercises for the Joint Warfare Centre (JWC), a NATO organization.
“With trailing annual revenues of approximately $4-million and a positive margin profile, we expect CTS to be EBITDA accretive within the first twelve months,” said Patrick Houston, chief financial officer of Calian. “A presence in Norway supports Calian’s access to the European market, which continues to be key to the Calian growth strategy.”
Village Farms International, Inc. (VFF-T) announced that it has executed a definitive agreement with DutchCanGrow Inc. (DCG), a Netherlands-based cannabis enterprise, to become one of six equal shareholders in DCG owning just under 16 per cent each, with a seventh shareholder owning 5 per cent.
"DCG is pursuing the opportunity to become one of a limited number of licensed cannabis growers (up to a maximum of 10) when the Dutch government permits the first legal recreational cannabis market in Europe under its 10-city Experiment to Investigate Closed Cannabis Supply Chains," the company stated.
Adjusted EBITDA is expected to range between a loss of $200,000 and a profit of $300,000.
At June 30, total funds available stood at approximately $107-million, including a $35-million drawdown on the company’s revolving credit facility.
“Given the ongoing global impact from COVID-19, we felt it was important to provide an early look into our improving business metrics for the second quarter,” said Rob MacLean, CEO of Points.
“Our performance in the second quarter was much stronger than we originally anticipated at the beginning of the pandemic, as trends have steadily improved since the low points in late March and early April. In June, we generated gross profit that was almost 70 per cent of our 2019 monthly average, up from just under 50 per cent in May and 20 per cent in April. Cash grew through the May/June period and, at this point, we are optimistic these positive trends will continue through the second half of 2020.”
A&W Revenue Royalties Income Fund (AW.UN-T) announced that it’s resuming monthly distributions to its unitholders in the amount of 10 cents per trust unit. The next distribution for June will be paid on July 31.
The fund also announced that A&W Food Services of Canada Inc. will be resuming regular royalty payments. The fund said it restarted monthly distributions "on the basis of the recent improvement in the performance of the A&W restaurants in the royalty pool and the resumption of royalty payments by A&W Food Services."
The company also said same-store sales growth for A&W Restaurants in the royalty pool fell by 31.6 per cent for the second quarter of 2020 as compared to the second quarter of 2019.
Rupert Resources Ltd. (RUP-X) announced equity financings totalling $22.3-million. The company said BMO Capital Markets, as sole underwriter, has agreed to buy, on a bought deal basis 4,605,217 common shares for $3.20 each for gross proceeds of about $14.7-million.
The company also announced a concurrent private placement of up to 2,351,304 common shares at the offering price "on substantially the same terms as the public offering.
The company said the net proceeds of both will be used for ongoing exploration expenditures on its properties in Finland and for general corporate purposes.
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