Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
CannTrust Holdings Inc. (TRST-T; CTST-N) announced it received written notification on Dec. 9 from the New York Stock Exchange that it’s no longer in compliance with the exchange’s continued listing standard rules. The trading price of the company’s common shares has fallen below the NYSE’s share price rule of being at least US$1 per share over a consecutive 30 trading-day period.
CannTrust said it has six months to regain compliance and that its common shares will continue to be listed and trade on the NYSE as usual.
NorthWest Healthcare Properties Real Estate Investment Trust (NWH.UN-T) announced an equity financing of about $225-million. The REIT announced a public offering on a bought deal basis of 16.4 million trust units at a price of $12.20 each for proceeds of $200.1-million. The REIT said the public offering is being made through a syndicate of underwriters led by BMO Capital Markets, RBC Capital Markets, and Scotiabank.
It has also entered into an agreement to sell about 2 million trust units to NorthWest Value Partners Inc., its largest unitholder, on a non-brokered private placement basis at the offering price for gross proceeds of approximately $25-million.
The REIT said it intends to use the net proceeds of the offering to repay $191-million of corporate debt as well as to expand its European platform through the acquisition of three properties for a combined purchase price of approximately $68.5-million.
Net earnings were $10.6-million or 31 cents per share compared to $11.6-million or 34 cents for the corresponding 2018 period.
Western Forest Products Inc. (WEF-T) announced that the company and the United Steelworkers Local 1-1937 will meet with independent mediators Vince Ready and Amanda Rogers this week amid a strike which began on July 1. The parties have agreed to a media blackout during this mediation process.
Western Forest Products says the strike affects all its USW certified manufacturing and timberlands operations in B.C, or about 1,500 hourly employees and approximately 1,500 employees working for the company’s timberland operations and contractors.
Home Capital Group Inc. (HCG-T) announced that it has completed a strategic review of its consumer retail loan portfolio and determined that the point-of-sale retail lending business is considered non-core.
“As a result, gross loan balances of approximately $84-million will now be treated as assets held for sale for accounting purposes,” the company stated, adding that it “remains committed to its retail structured lending business within the consumer retail loan portfolio.”
Home Capital said the assets and income associated with the point-of-sale business are not material to its financial results. The company said it will continue to operate the point-of-sale business “until a suitable transaction can be concluded.”
EnWave Corporation (ENW-X) reported fourth-quarter revenue of $16.2-million up from $7.4-million a year ago and ahead of expectations of $14.3-million.
“The increase to revenues was attributable to a large distribution increase to Costco in Q4 2019 for the Most Valuable Member (MVM) Coupon program as well as growth in number of REV machines sold,” the company said, adding that the fourth quarter had the highest quarterly revenue in the company’s history.
The company reported a net loss of $425,000 or nil per share compared to a net income of $75,000 or nil per share a year ago, “primarily due to non-cash expenses and increased investment in S&M [sales and marketing].”
Separately, EnWave announced it has signed an exclusive, royalty-bearing commercial license with Helius Therapeutics Ltd., New Zealand’s largest licensed medical cannabis company.
EnWave says the license grants Helius the exclusive right to use EnWave’s proprietary Radiant Energy Vacuum (REV) dehydration technology for the drying of cannabis in New Zealand with the ability to sublicense to additional third-party Cannabis companies.