Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Cineplex Inc. (CGX-T) has been awarded nearly $1.24-billion in damages over a botched deal to sell Canada’s largest movie theatre chain to UK-based Cineworld Group plc last year.
The Toronto-based cinema owner announced on Tuesday that the Ontario Superior Court of Justice had ruled that Cineworld “wrongfully repudiated” the $2.18-billion deal, which fell apart during the pandemic. Both companies had accused the other of acting in “bad faith” and of breaching the terms of the deal; Cineworld filed a $54.8-million counterclaim, which the court has denied.
“We are pleased that the Court found Cineplex acted properly throughout this difficult period in our history,” Cineplex chief executive officer Ellis Jacob wrote in a statement on Tuesday. The company declined to answer further questions about the decision.
Cineworld said in a statement that it intends to appeal the decision.
- Susan Krashinsky Robertson
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Westshore Terminals Investment Corp. (WTE-T) announced that it loaded 27.1 million tonnes for the 11 months ended Nov. 30, compared to 26.9 million tonnes for the same period in 2020. The company said throughput volumes for 2021 are anticipated to be 29 to 29.5 million tonnes at an average loading charge of approximately $11.60. “The recent B.C. floods had some negative impact on Canadian coal customers, which in turn had some impact on volumes at Westshore,” the company stated.
For 2022, “based on information currently available,” the company said volumes are projected to be approximately 27.5 million tons at an average loading charge of approximately $11.85.
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Quarterhill Inc. (QTRH-T) announced that its board has approved a plan to accelerate the company’s transition into a “growth-oriented business” focused on the intelligent transportation systems (ITS) industry.
Quarterhill also said it plans to hire investment bankers in the coming weeks to conduct a strategic review of its subsidiary Wilan Inc., which may include changes to its corporate structure, the acquisition or disposition of assets, a going private transaction, joint ventures, a sale or alternative operating models, among other potential alternatives.
It also said Bret Kidd will be promoted to CEO of Quarterhill and will also continue as interim CEO of ETC until a successor is appointed. Quarterhill CEO Paul Hill will be leaving effective immediately and will be resigning from the Quarterhill board.
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H2O Innovation Inc. (HEO-X) announced the acquisition of JCO Inc. and Environmental Consultants LLC, which each offer water and wastewater maintenance and management services to municipal and industrial customers in the Hudson Valley of New York State.
“The acquisition of the acquired businesses, which were owned and operated separately, complements the current business activities of H2O Innovation in the northeastern United States and strengthens its position in the North American O&M market,” the company stated.
The purchase price wasn’t disclosed “for competitive reasons,” the company stated.
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Tree Island Steel Ltd. (TSL-T) announced an agreement to sell its Etiwanda facility in Rancho Cucamonga, Cali. for US$55.3-million to Newcastle Partners, Inc.
The company said it will lease back the Etiwanda Facility by entering into a two-year commercial lease agreement with Newcastle.
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Davids Tea Inc. (DTEA-Q) reported sales for the three months ended Oct. 30 fell 15.3 per cent to $22.2-million from $26.2-million in the prior-year quarter.
Its net loss was $1.9-million or 7 cents per share, compared to net income of $14.5-million or 54 cents in the prior-year quarter. Its adjusted net loss was $1.8-million or 7 cents per share, compared to net income of $2.3-million or 9 cents per share in the prior-year quarter.
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