Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Aecon Group Inc. (ARE-T) is extending the outside date for completing the takeover by CCCC International Holding Limited (CCCI) to July 13.
“The parties chose to extend the outside date because of the ongoing review of the proposed transaction under the Investment Canada Act,” the company stated in a release on Wednesday.
Investor skepticism appears to be growing that Aecon’s takeover by a Chinese company will be approved by the Canadian government, at least in its present form, Bloomberg reported recently.
The Trudeau cabinet has issued a special order to prolong Ottawa’s scrutiny of the $1.5-billion takeover of Canadian infrastructure giant Aecon by the Chinese state-owned firm, invoking a section of law used when the federal government believes an investment “could be injurious to national security.”
- with files from Bloomberg, Robert Fife and Steven Chase
Badger Daylighting Ltd. (BAD-T) is increasing its dividend by 18 per cent to 54 cents per share on an annual basis. The dividend is paid monthly and will increase to 4.5 cents from 3.8 cents, starting in April, the company said.
It also reported a profit of $31.2-million or 84 cents per share in the fourth quarter compared to $7.4-million or 20 cents for the same quarter a year earlier.
U.S. federal corporate income tax changes positively impacted Badger’s fourth quarter with further anticipated positive impacts in 2018 and future years,” the company stated.
Total revenue came in at $132.8-million in the fourth quarter, up from $110.9-million for the same period a year earlier. Analysts were expecting revenue of $140.8-million in the most recent quarter.
Liberty Health Sciences Inc. (LHS-CN) says it has acquired a 75-per-cent ownership interest in Massachusetts-based William Noyes Webster Foundation, Inc. for US$16 million.
The company it’s buying has an “integrated medical cannabis license” in Massachusetts, as well as a cultivation facility and a dispensary location “both nearing completion, as well as leases and local governmental approvals in place for two additional dispensary locations,” Liberty Health stated in a release.
“This acquisition affords Liberty the opportunity to tap into the growing Massachusetts medical cannabis marketplace.”
CannaRoyalty Corp. (CRZ-CN), a cannabis investor and operator, says it’s buying River Distribution (RVR), which includes “a number of leading California brands sourced from across the state.” CannaRoyalty said the acquisition will make it one of the biggest Cannabis distributors in California.
In the release, the company said the “base consideration” was 5 million CannaRoyalty common shares, with 1.65 million shares subject to “operational milestones.” The company also said there was an additional consideration of 2 million shares, “subject to the successful completion by RVR of financial milestones to be agreed on by the parties.”
Its loss for the period was US$2.6-million, compared to income of US$2.9 million a year earlier. The company said the loss was due to a one-time, non-cash tax charge.
It’s the first rating from a credit rating agency for the corporation. “This initial credit rating represents another milestone for Crown and supports our objective to build and diversify our capital sources to provide additional avenues for growth,” said Chris Johnson, CEO of Crown.
Frontera Energy Corp. (FEC-T) reported fourth-quarter sales of $US335-million, up from US$270-million a year earlier. Its net loss was US$33-million or 65 US cents per share versus a loss of US$217-million or US$4.33 a year earlier.
Analysts were expecting revenue of US$301.7-million in the most recent quarter and a loss of 51 US cents.
In a separate release, Frontera also announced changes to its executive management team, including the appointment of board member Richard Herbert as CEO, effective April 2, replacing Barry Larson, who will remain with the company until April 30, “to assist with the transition.”
David Dyck will join the company as chief financial officer and Peter Volk has resigned as general counsel and secretary of the company “to pursue other opportunities,” and will be replaced by Margaret McNee, a senior partner of McMillan LLP.
“The company continues to experience improving market conditions and favourable pricing trends across its key products,” it stated in a release. “The company also has a strong order book across its hot-rolled coil, cold-rolled coil, and coated products.”
It said its order book is “subject to a lag in order entry and revenue recognition” of 8-to-10 weeks. It says first-quarter sales will largely reflect sales orders booked in the fourth quarter, while second-quarter sales are expected to largely reflect sales orders booked in the first quarter.
“In [the first quarter] shipments are expected to be 3 per cent to 5 per cent higher than [the fourth quarter],” the company stated.
It expects first-quarter djusted EBITDA (earnings before interest, taxes, depreciation and amortization) to be between $60-million and $70-million, “largely reflecting sales orders booked in [the fourth quarter] at market prices materially below current levels and incremental transportation costs resulting from general shortages of trucks used to deliver products in [the first quarter].”
It expects revenue and adjusted EBITDA will improve in the second quarter, with adjusted EBITDA to be between $120-million and $150-million.
The owner of the Saks Fifth Avenue luxury retailer said it had net income of $84-million in the fourth quarter, which ended Feb. 3, compared with a net loss of $152-million a year earlier.
Adjusted net income excluding one-time items, was $20-million, compared with analyst expectations of $120.18-million, according to Thomson Reuters I/B/E/S.
AGF Management Ltd. (AGF-B-T) says first-quarter income from continuing operations was $110.9-million, which was slightly below expectations of $112.5-million and compared to $107.2-million for the same period a year ago.
Diluted earnings per share (EPS) from continuing operations was 27 cents compared to 11 cents for the comparative period. Adjusted diluted EPS came in at 14 cents, which was in line with expectations and compared to 11 cents a year earlier.
The term sheet states ICC Labs may acquire an initial 25-per-cent equity stake in Kalapa to be paid with a combination of “cash, pure CBD [cannabidiol] produced by ICC Labs, and common shares of ICC Labs,” with the option to acquire the remaining 75 per cent by the end of the year.
The Hydropothecary Corp. (THCX-X) reported second-quarter revenue of $1.2-million up from $914,000 a year earlier. “Higher revenue was driven mainly by increased sales volume, offset partially by lower average selling prices,” the company said. Analysts were expecting revenue of $1.5-million in the most recent quarter.
Its net loss was $9-million or 10 cents per share with 93 million weighted shares outstanding versus a loss $1.1-million or 2 cents with 51.5 million shares outstanding for the same period a year earlier. Analysts were expecting a loss of 4 cents per share.
Altius Minerals Corp. (ALS-T) says it plans to sell its Sail Pond silver-copper-lead-zinc project in Newfoundland to New Found Gold Corp., a private Newfoundland-focused precious metals explorer.
Altius says it will receive 12 million common shares of NFG and will retain a 2 per cent net smelter return royalty. “Other key conditions of the [letter of intent] include NFG listing its common shares on a recognized Canadian stock exchange and raising a minimum of $7.5-million via a private placement, of which Altius would invest a minimum of $1-million,” the company stated.
The proposed agreement also includes a minimum exploration commitment of $1-million to be completed by NFG within 12 months of the deal closing.
Supremex Inc. (SXP-T) appointed Guy Prenevost as its chief financial officer and corporate secretary effective April 16. It also said CEO Stewart Emerson plans to sell 210,000 common shares held since 2006 “for estate planning purposes.”