Small Cap News on the TSX

Small Cap News on the TSX

 Goodfood Market Corp. (FOOD-T) announced a $35-million bought-deal offering. The company said it has an agreement with a syndicate of underwriters co-led by Desjardins Capital Markets and Stifel GMP that has agreed to purchase 5,788,000 offered shares at a price of $6.05 each. The shares closed at $6.45 on Wednesday, prior to the announcement.

The shares include 4,135,000 common shares of the company and 1,653,000 from shareholders, including CEO Jonathan Ferrari, president and chief operating officer Neil Cuggy, vice-president of merchandising Raffi Krikorian and director Hamnett Hill.

The gross proceeds will be about $25-million to the company and $10-million to the shareholders.

The company said it intends to use the net proceeds "to fund capital and operational projects to build out same-day delivery capabilities through fulfilment technology and automation equipment and for general corporate purposes."

“The accelerating adoption of online grocery and home meal solutions has brought forward Goodfood’s growth and profitability plan and this capital raised will support our continued push for growth and bolster the efficiency and breadth of our operations,” stated Mr. Ferrari in the release.

Savaria Corp. (SIS-T) said it expects second-quarter revenue to come in at $84.5-million, a drop of 10.2 per cent from the same quarter in 2019. Analysts are expecting revenue of $80.6-million for the quarter ended June 30.

The company said adjusted EBITDA is estimated at $14.5-million, an increase of 2 per cent when compared to the same period in 2019.

“Our extensive accessibility product portfolio, along with our efforts to build out a global distribution network, as well as significant cost-containment efforts, all contributed to our strong results, despite the challenging climate presented by the COVID-19 pandemic.” stated CEO Marcel Bourassa.

He said official results will be released on Aug. 12 after the market close.