Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Celestica Inc. (CLS-N; CLS-T) announced that, as a result of the uncertainty surrounding COVID-19 including “its duration, and its business impact,” it’s withdrawing previously disclosed financial guidance for the first quarter of 2020.
The company said it's required to temporarily stop work on-site at its operations in Santa Clara County and Alameda County until April 7 following a “shelter-in-place” order for multiple Bay Area counties in California.
Also, the Malaysian government issued an order to close certain business activities between March 18 and March 31. "These government directives are expected to adversely impact Celestica’s ability to manufacture products and receive required parts from key suppliers," the company stated.
"This decision follows the Government of Canada's announcement that the country is closing its borders to foreign nationals, as well as similar decisions by several other countries where Transat operates," it stated.
Roots Corp. (ROOT-T) announced that it will close all of its retail stores as of March 18 “in response to the evolving situation surrounding COVID-19.” It said the closures are expected to end in the majority of locations on March 31 “at which time Roots will reevaluate based on the current circumstances.”
"As this situation continues to evolve, we believe that this temporary shutdown is an opportunity to do our part as members of team Canada to control the spread of COVID-19 and keep our employees, customers and broader community safe," stated CEO Heather Reisman.
Mountain Province Diamonds Inc. (MPVD-T) announced that, as a result of city-wide coronavirus-related closures in Antwerp Belgium, where the company sells its diamonds, the current sale has been postponed until further notice.
The company said the virus is not impacting operations at the Gahcho Kué Mine "as numerous precautionary measures have been taken over the past few weeks to ensure, as far as possible, a safe working environment for all employees and contractors travelling to and from site as well as the support offices in Yellowknife, Calgary and Toronto."
Net income from continuing operations was US$0.6-million or nil per share, compared with a net loss of US$10.4 million or 8 US cents per share a year earlier. “This improvement is driven by higher revenue and resulting margin, reduced operating expenses and higher income from unconsolidated joint ventures,” the company stated.