Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Westshore Terminals Investment Corp. (WTE-T) announced that its Westshore Terminals Limited Partnership subsidiary has signed a term sheet with Teck Resources Ltd's (TCK.B-T) Teck Coal Limited to enter into a new contract for the shipment of coal following expiry of their current contract on March 31, 2021.
Westshore said the new contract will provide for the shipment of between 5 and 7 million tonnes of coal annually at fixed loading charges. "The 5-to-7-million tonne range will apply for the 9 months April – December, 2021 and for each 12-month period (January – December) in subsequent years," the company stated. It said Teck will be required to ship 32.25 million tonnes over the term of the new contract.
The previous contact was for 19 million tonnes a year.
“Clearly, firming up an agreement with Teck is positive,” TD analyst Daryl Young said in a note Wednesday. “However, the volumes are likely lower than what many investors were hoping for.”
“Furthermore, we believe that WTE’s risk profile increases significantly as thermal coal customers will represent over 64% of volumes in the future, compared with 37% currently,” he added.
Shares in Westshore are down 12 per cent in late morning trade.
NexTech AR Solutions (NTAR- C) reported second-quarter revenue of $3.5-million, up from $905,915 a year earlier.
Its net loss was $2.3-million or 4 cents per share versus a loss of $923,964 or 2 cents a year ago.
Midas Gold Corp. (MAX-T) announced that Paulson & Co. Inc. will be exercising the conversion feature on the convertible notes it holds totalling $82.1-million for a total of 199.7 million common shares of Midas Gold. The company said the move will result in Paulson holding approximately 44.12 per cent of the company's outstanding common shares.
Marcelo Kim, partner of Paulson and the chairman of the board of Midas Gold said Paulson "intends to remain a long-term shareholder of the company."
The company said the conversion of the notes will simplify the company’s capital structure, remove uncertainty related to the potential timing of the conversion of the notes and “significantly reduce the long-term financial liability associated with the convertible notes.”
VersaBank (VB-T) reported revenue of $12.4-million for its third quarter ended July 31 versus $14.1-million a year earlier.
Net income of $4.4-million or 18 cents per share compared to net income of $5-million or 21 cents a year ago.
Rubicon Organics Inc. (ROMJ-C) reported net revenue of $992,000 for the second quarter ended June 30 versus nil the year before and up from $500,000 in the first quarter. Analysts were expecting revenue of $900,000 for the latest quarter.
Its net loss for the period was $1.9-million or 4 cents per share versus $3.8-million or 9 cents a year ago.
ECN Capital Corp. (ECN-T) announced a $75-million bought-deal offering of senior unsecured debentures. It has an agreement with a syndicate of underwriters, led by CIBC Capital Markets, BMO Capital Markets and National Bank Financial Inc., which has agreed to purchase the debentures due December 31, 2025 at a price of $1,000 each.
ECN Capital said it intends to use the net proceeds to repay a portion of the amounts outstanding under its senior credit facility and for general corporate purposes.
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