Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Loyalty rewards company Aimia Inc. (AIM-T) says it earned a profit of $4.9 million in its latest quarter compared with a loss of $126.2 million in the same quarter a year earlier.
The company says the profit amounted to 20 cents per share for the three months ended Dec. 31 compared with a loss of 86 cents per share in the fourth quarter of 2018 when it had more shares outstanding.
Revenue totalled $35.0 million, down from $36.8 million.
Aimia also announced its plan to revamp its board as part of an agreement the company reached last year to end a drawn-out fight with a group of dissident shareholders.
Six new non-management directors have been appointed to replace six outgoing board members. Charles Frischer was appointed as chair, while the other new directors include Karen Basian, Sandra Hanington, Michael Lehmann, David Rosenkrantz and Jordan Teramo. Philip Mittleman and Aimia chief executive Jeremy Rabe are the only continuing directors.
Aimia noted that the new board collectively holds more than 32 per cent of the company’s shares. The Canadian Press
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People Corp. (PEO-X) announced that it has closed the acquisition of Integrated Benefit Consultants Ltd., which specializes in providing group benefits consulting services for companies throughout the province of Alberta. “Combined with People Corporation’s existing operations in Edmonton, Calgary, and Lethbridge, the addition of IBC increases the company’s presence in Western Canada,” the company stated. Terms of the transaction weren’t disclosed in the release.
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Equitable Group Inc. (EQB-T) reported fourth-quarter net income of $55.9-million or $3.21 per share, up from $40.1-million or $2.33 year earlier. Adjusted earnings per share was $3.21 versus $2.66 a year ago and ahead of expectations of $3.13. Revenue was $302-million, an increase from $239.6-million.
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Valens GroWorks Corp. (VLNS-X) reported that its revenue rose to $30.6-million for its fourth quarter ended Nov 30, which is said is an 86-per-cent increase over the third quarter and “above the high-end of the guidance range” announced in December. Net income was $4.5-million or 4 cents per share versus a loss of $7.4-million or 10 cents a year earlier.
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EXFO Inc. (EXFO-Q; EXF-T) updated its revenue outlook for the second quarter of fiscal 2020 “due to the coronavirus impact on its supply chain and manufacturing operations in China as well as an information technology issue.”
Exfo said it now forecasts revenue for the second quarter ending on Feb. 29 will reach approximately US$55-million compared to prior revenue guidance of between US$66-million to US$71-million. "Management expects revenue to accelerate in upcoming quarters as operations return to full capacity," it stated. "To contain the spread of infection, Chinese public health authorities have imposed preventive measures within affected regions including an extended shutdown of businesses, restrictions on various forms of public transportation and lockdown periods for individuals—all of which are affecting Exfo's factory and supply chain."
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First National Financial Corp. (FN-T) said fourth-quarter revenue increased 10 per cent to $342.1-million from $312-million a year ago. Net income grew to $49-million or 80 cents per share compared to $32.2-million or 53 cents per share a year ago. Analysts were expecting earnings of 75 cents per share.
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GoldMining Inc. (GOLD-T) announced an agreement with Sailfish Royalty Corp. and its subsidiary to indirectly acquire a 100-per-cent interest in the Almaden Gold Project in west-central Idaho for $1.15-million in cash and shares.
"This acquisition continues our strategy of consolidating quality resource-stage projects in the Americas," stated CEO Garnet Dawson, adding that it's "a win for both companies as it is accretive to GoldMining, while allowing Sailfish to focus on its royalty business. Our next step after completing this acquisition will be to complete a current resource estimate on the project.
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Green Growth Brands Inc. (GGB-C) announced that The BRN Group Inc. has agreed to acquire the company’s cannabidiol business. “The company and an affiliate of BRN have executed a 'stalking horse; asset purchase agreement,” it stated, that sees the buyer acquire all of the assets and assume the current liabilities and certain other obligations of the CBD business. The company said it expects to hold up to a 20-per-cent carried interest in the CBD business following the transaction.
"While we are excited by the consumer demand signals we saw in the CBD Business during the quarter ending December 28, 2019, and we remain confident in its future potential, the CBD Business remains in its nascency," said CEO Peter Horvath. "With high-potential in the future comes material overhead costs and other obligations in the near term. These near-term overhead costs and other obligations, together with constraints on liquidity, have posed significant challenges that have hindered us from growing the CBD business to its full potential."
The company also reported revenue for its second quarter was $21.1-million, an increase of 66 per cent over the prior quarter and compared to $3-million a year earlier. Analysts were expecting revenue of $19.6-million in the latest quarter.
Its net loss before taxes for the quarter was $34.8-million or 15 cents per share, compared to a net loss before taxes for the prior quarter of $29.9-million and a loss of $14.2-million or 9 cents a year earlier.
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Theratechnologies Inc. (TH-T; THTX-Q) reported revenue for the fourth quarter ended Nov. 30 was $16.4-million compared to $14-million for the same period last year, representing an increase of 17.3 per cent.
Its net loss was $6.4-million or 8 cents per share compared to a net loss of $983,000 or a penny per share in the fourth quarter of 2018.
Analysts were expecting a loss of 5 cents and revenue of $21.4-million.
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New Gold Inc. (NGD-T) says the Ontario Teachers’ Pension Plan has agreed to acquire a 46-per-cent free cash flow interest in the New Afton mine. The agreement includes an option to convert the interest into a 46-per-cent joint venture interest in four years, or have their interest remain as a free cash flow interest at a reduced rate of 42.5 per cent, for upfront cash proceeds of $30- million payable upon closing of the transaction.
The proceeds from the transaction will be used “to improve New Gold’s financial flexibility and to reduce net indebtedness,” the company stated.