Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Roots Corp. (ROOT-T) reported a loss of nearly $9.7 million in its latest quarter as the company fell short of expectations.
The company says the loss amounted to 23 cents per share for the 13-week period ended Aug. 3 compared with a loss of nearly $4.1 million or 10 cents per share a year earlier.
On an adjusted basis, Roots says it lost 15 cents per share compared with an adjusted loss of six cents per share in the same quarter last year.
Analysts on average had expected a loss of 11 cents per share, according to financial markets data firm Refinitiv.
Overall sales totalled nearly $61.7 million for the quarter, up from nearly $60.2-million in the same quarter last year.
However, comparable sales fell 2.9 per cent due to a drop in store traffic and a delay in the flow of product to stores due to a transition to a new distribution centre, partially offset by better than expected eCommerce sales and benefits from store relocations and renovations.
“We are pleased with the improving trends we have seen moving into third quater,” chief executive Jim Gabel said in a statement.
- The Canadian Press
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Catalyst Capital Group Inc. has amassed a 16-per-cent stake in Hudson’s Bay Co. (HBC-T) as the Toronto-based private-equity firm seeks to stymie a privatization bid from the retailer’s executive chairman.
Catalyst said in a regulatory filing on Tuesday that it controls 29.4 million HBC shares following a tender offer for $10.11 a share it completed last month. The firm, led by financier Newton Glassman, spent $187-million on the stock, which added to a position it had previously purchased.
HBC executive chairman Richard Baker is leading a $1-billion bid to take the company private, and his group, including Rhone Capital LLC, office-sharing company WeWork, the Abu Dhabi government’s investment vehicle and U.S. investment firm Abrams Capital Management, controls 57 per cent of the shares outstanding. A special committee of the HBC board has yet to issue its formal response to Mr. Baker’s $9.45-a-share proposal, but it already said it believes the offer to be inadequate.
- Jeffrey Jones
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Canopy Rivers Inc. (RIV-T) announced the formation of its strategic advisory board, which includes group of business leaders that will provide guidance to the company’s executive team.
Inaugural members include: John Ruffolo, the co-founder and vice chair of the Council of Canadian Innovators and founder of OMERS Ventures and Platform Investments; Meg Lovell, co-head of M&A and as corporate and commercial counsel at Imperial Brands PLC; Philip Donne; a board advisor for several companies including Greenhouse Juice, Longo's, Nature's Path Foods, and Valens and the former president of Campbell Canada.
Canopy Rivers also said executive vice president Daniel Pearlstein is no longer with the company.
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Pason Systems Inc. (PSI-T) announced that it has made a US$20-million investment to acquire the majority interest in a U.S.-based software company that provides products and services for the solar power and energy storage industry.
"The company will be combined with Pason Power to provide a robust and compelling software and control system offering, enabling solar and energy storage developers to secure more projects and deploy assets for their customers with higher confidence," Pason stated in a release.
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Cargojet Inc. (CJT-T) said its CEO Ajay Virmani sold 674,000 common voting shares held through The Virmani Family Trust. Mr. Virmani plans to use proceeds from the sale of shares for estate planning and to fund his family foundation for charitable giving, the company stated. It said the sale was facilitated by a Canadian investment dealer through a block trade arrangement.
Cargojet said Mr. Virmani will continue to retain the majority of his holdings in the company "and remains committed to leading the corporation as CEO into its next phase of growth."
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Golden Star Resources Ltd. (GSC-T) said it has approved a request by La Mancha Holding S.àr.l. to acquire an additional 5 per cent of the company’s shares through ordinary market or block trade purchases.
Golden Star said the investor rights agreement with La Mancha has been amended and will now restrict La Mancha from acquiring any additional common shares beyond 35 per cent until October 2020 without its consent. The previous agreement restricted La Mancha from acquiring any additional common shares beyond 30 per cent until October 2020.
"Golden Star believes that a further investment by La Mancha is in the best interests of the company and therefore has provided its consent to the additional purchases," the company stated.
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Fortuna Silver Mines Inc. (FSM-N; FVI-T) announced a $40-million bought-deal financing of senior subordinated unsecured convertible debentures at a price of US$1,000 each. The company said it will use the net proceeds for working capital in relation to the start-up of the Lindero project and for general working capital purposes.
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Coro Mining Corp. (COP-T) said it will acquire the remaining 49-per-cent interest in the Marimaca 1-23 claim it does not currently own from local family owners for US$12-million. The deal includes US$6-million paid on signing of the definitive purchase agreement and two payments of US$3-million due in 12 and 24 months, respectively. The sellers will receive a 1.5 per cent net smelter return (NSR) royalty over the Marimaca 1-23 claim.
Coro said it will retain an option to buy back 1 per cent of the NSR (leaving a 0.5 per cent NSR remaining) for a total of US$4-million at any time up to 24 months from the commencement of commercial production from the Marimaca 1-23 claims. Coro also said it will retain a right of first refusal to acquire this royalty at all times.
In connection with the transaction, the company announced a $16.8-million non-brokered private placement, which includes the sale of 145,863,926 common shares of the company at a price of 11.5 cents each. The subscribers under the placement will be the company’s two largest shareholders, Greenstone Resources LP and associated entities and Ndovu Capital XIV B.V.
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Chemtrade Logistics Income Fund (CHE.UN-T) announced a $100-million bought deal offering of convertible unsecured subordinated debentures at a price of $1,000 each. The company said the net proceeds will be used to pay down senior debt under the fund’s existing credit agreement “with the intention of drawing on it to redeem all of the outstanding Chemtrade Electrochem 6.50-per-cent convertible unsecured series VI debentures due December 31, 2021 and for general trust purposes.”
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MORE TO COME