Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
High Liner Foods Inc. (HLF-T) raised its dividend and reported third-quarter results ahead of expectations.
The company said sales came in at US$214.3-million compared to US$194.6-million a year ago. Analysts were expecting revenue of US$206.5-million.
Net income was US$9.2-million or 26 cents US per share compared to net income of US$3.8-million or 11 cents US a year ago. Adjusted net income was US$11.3-million or 32 cents US per share versus $5.9-million or 18 cents US a share a year earlier. Analysts were expected adjusted earnings of 22 cents per share.
“Our financial performance this quarter reflects the strong underlying fundamentals of our business and the proactive action we have taken on pricing, purchasing and portfolio mix,” said CEO Rod Hepponstall.
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Real Matters Inc. (REAL-T), which provides network management services for the mortgage lending and insurance industries, reported revenue of US$125.6-million for its fourth quarter ended Sept. 30 compared to $124.4-million a year earlier.
Net income was US$9.1-million or 11 cents US per share versus net income of US$12.7-illion or 14 cents US per share a year ago. Adjusted net income was US$7.5-mllion or 9 cents US per share versus US$15.6-million or 18 cents US per share a year ago.
Analysts were expecting revenue of US$117.6-million and adjusted earnings of 8 cents US per share, according to S&P Capital IQ.
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Goodfood Market Corp. (FOOD-T) reported sales of $79.4-million for its fourth quarter ended Aug. 31, which was below expectations of $91.4-million and down from $83.7-million a year ago
The company said the sales drop was due to “the impact of re-opening and the return of seasonality stemming from the removal of COVID-19 restrictions and the increased vaccination rate impacted this quarter’s top line.”
The company added that it “expect[s] these headwinds to stabilize as the year progresses and the return to normalcy continues, with our newly launched one-hour on-demand delivery providing the key platform for growth.”
The online grocery company stated its net loss was $22.1-million or 30 cents per share versus net income of $1.2-million or 2 cents a year ago. Analysts were expecting a loss of 6 cents for the most recent quarter.
It said selling, general and administrative expenses increased to 47.2 per cent of net sales compared 27.5 per cent last year, primarily due to higher wages and salaries to support investments and higher marketing spending compared to the same period in 2020.
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The Very Good Food Company Inc. (VGFC-Q; VERY-X) reported a 202-per-cent increase in its October revenue to $1.5-million versus a year ago. The company said it has seen steady growth “as meat alternatives increase in popularity and consumers demand high-quality plant-based options.”
The Vancouver-based company also announced that it has entered into loan agreements with its CEO Mitchell Scott and its chief research and development officer James Davison, to provide individual loans in the amounts of $750,000 and $500,000, respectively.
“The loans were provided to enable them to meet certain personal financial obligations in respect to their residential homes,” the company stated, adding the loans have an initial limited term of 90 days, subject to extension, “at the sole discretion of the company.”
To company said the loans can be prepaid at any time prior to maturity without penalty and have an interest rate of 9 per cent per annum, payable monthly, and will be secured by certain financial assets starting on Jan. 18, 2022.
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Jushi Holdings Inc. (JUSH-CN) reported third-quarter revenue that slightly missed expectations and lowered its full-year guidance.
The cannabis company reported revenue of US$54-million, an increase from US$25-million a year earlier. Analysts were expecting revenue of $56.7-million in the latest quarter, according to S&P Capital IQ. Net income of US$38.2-million compared with a loss of US$30-million a year ago.
The company also lowered its full year 2021 revenue guidance range to US$205-million to US$215-million – analysts were expecting US$223-million – and its 2021 adjusted EBITDA guidance range to US$21-million to US$25-million on an IFRS basis.
It said the reduction in guidance was driven by delays in new store openings, “due to unforeseen regulatory approval timing-related delays,” slower than expected ramp-up of wholesale activity in Massachusetts “due to the lack of wholesale operating infrastructure by the previous operator” and “ongoing regulatory complexities that have impeded our ability to introduce our full suite of flower products in Virginia.”
The comapny also cited a delay in signing and closing of acquisitions in Nevada. “We also incurred greater than expected corporate overhead as we have ramped up hiring to support our continued growth,” it stated.
Jushi Holdings also announced on Wednesday an agreement to acquire NuLeaf, Inc., a Nevada-based vertically integrated operator, for up to US$62.5-million.
Under the terms of the agreement, Jushi has agreed to acquire NuLeaf’s operational dispensary assets as well and its cultivation and processing facilities for an upfront payment of US$52.5-million, which includes US$15.75-million in cash, US$21-million in subordinate voting shares of the company and a US$15.75-million unsecured promissory note.
The company has also agreed to issue up to an additional US$10-million in an identical percentage combination of cash, company shares and unsecured promissory note.
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Exchange Income Corp. (EIF-T) announced a $100-million bought-deal offering.
The company said it has an agreement with a syndicate of underwriters, co-led by National Bank Financial Inc. and CIBC Capital Markets, to issue $100-million in convertible unsecured subordinated debentures at a price of $1,000 each. The debentures will have an annual interest rate of 5.25 per cent, payable semi-annually in arrears on Jan. 15 and July 15 each year.
The company said it plans to use the net proceeds to pay down debt.
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Dominion Lending Centres Inc. (DLCG-X) reported record quarterly funded mortgage volumes of $22.6-billion for the third quarter, a 61-per-cent increase over the same period a year ago.
Revenue of $22.3-million was up 59 per cent versus a year ago and ahead of expectations of $14-million.
Net income was $1-million or 1 cent per share versus net income of $5-million or 5 cents per share a year ago. The company said the drop was due to finance expenses on preferred share liability and an increased net loss in the non-core business asset management segment. The corporation didn’t have discontinued operations during the three months ended Sept. 30, 2021, compared to income from discontinued operations for the same period a year earlier.
Adjusted income was $3.7-million or 7 cents per share versus $3.5-million or 3 cents a year ago.
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Atrium Mortgage Investment Corp. (AI-T) announced a $30-million public offering of convertible unsecured subordinated debentures.
The 5 per cent convertible unsecured subordinated debentures are due Dec. 31, 2028 at a price of $1,000 per debenture, the company stated.
The company said the net proceeds will be to pay down its credit facility, which will then be available to be drawn as needed for general corporate purposes, “particularly funding future mortgage loan opportunities.”
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