Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Goodfood Market Corp. (FOOD-T) reported sales of $67-million for its third quarter ended June 4 compared to $107.8-million a year ago. The expectation was for sales of $73.2-million, according to S&P Capital IQ.
“This represents the largest revenue decline to date for Goodfood as the company lapses the last quarter of strong sales boosted by COVID restrictions,” Stifel GMP analyst Martin Landry said in a note. He has a “hold” rating on the stock and $2.75 price target. The stock closed at $1.46 on Tuesday.
Its net loss of $21.1-million or 28 cents per share compared to a net loss of $2.3-million or 3 cents a year ago. The expectation was for a loss of 22 cents per share.
“The increase in net loss year-over-year is mainly due to lower net sales and gross profit as well as higher depreciation and amortization expense and reorganization and other related costs,” the company stated.
Mr. Landry said in a note he believes Goodfood’s shares will be weaker today based on its latest results “as the path to return to revenue growth is unclear.”
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Theratechnologies Inc. (TH-T; THTX-Q) announced a binding commitment related to a non-dilutive term loan with an affiliate of Marathon Asset Management for up to US$100-million.
“Through this non-dilutive facility, we have gained a strong partner and supporter in Marathon Asset Management,” said Paul Lévesque, CEO of Theratechnologies. “The term loan is a significant vote of confidence by a leading health care investor and serves to materially strengthen our ongoing execution capabilities.
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Osisko Gold Royalties Ltd. (OR-T; OR-N) announced that it recorded approximately 22,240 attributable gold equivalent ounces in the second quarter of 2022, which it said represents record deliveries since the company’s inception in 2014.
Osisko also said it had record preliminary revenues from royalties and streams of $51.5-million during the second quarter, which is in line with expectations, according to S&P Capital IQ.
The company said it will provide full production and financial details with the release of its second-quarter results on Aug. 9.
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Archer Exploration Corp. (RCHR-CSE) announced it will buy Wallbridge Mining Company Ltd.’s (WM-T) nickel assets for $53.6-million to create a new Canadian nickel development company.
Archer will acquire the assets for about 198.6 million of its shares valued at 27 cents each. Archer will also grant Wallbridge a net smelter return royalty on production from the Grasset Project.
“The transaction will establish Archer as a leading Canadian nickel sulfide focused exploration and development company with assets in the established mining jurisdictions of Quebec and Ontario,” it stated.
Archer is backed by Inventa Capital Corp., a Vancouver-based merchant bank.
“The opportunity to have our portfolio of non-core nickel assets acquired by a focused, publicly traded nickel development and exploration company led by a world-class team unlocks the value of these assets and allows Wallbridge and its shareholders to benefit from their future development potential,” stated Wallbridge CEO Marz Kord in a separate release.
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More to come
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