At the close in Toronto, the S&P/TSX Composite lost 0.47%.
The best performers of the session on the S&P/TSX Composite were Mattr Corp (TSX:MATR), which rose 15.97% or 2.09 points to trade at 15.18 at the close. Meanwhile, Superior Plus Corp (TSX:SPB) added 14.64% or 0.82 points to end at 6.42 and NuVista Energy Ltd . (TSX:NVA) was up 8.46% or 0.99 points to 12.69 in late trade.
The worst performers of the session were Sandstorm Gold Ltd . (TSX:SSL), which fell 8.55% or 0.75 points to trade at 8.02 at the close. First Quantum Minerals Ltd . (TSX:FM) declined 7.91% or 1.62 points to end at 18.87 and Ivanhoe Mines Ltd. (TSX:IVN) was down 7.22% or 1.44 points to 18.51.
Falling stocks outnumbered advancing ones on the Toronto Stock Exchange by 536 to 361 and 102 ended unchanged.
The S&P/TSX 60 VIX, which measures the implied volatility of S&P/TSX Composite options, was up 2.30% to 11.57.
Gold Futures for December delivery was down 0.39% or 10.50 to $2,695.30 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in December fell 2.50% or 1.81 to hit $70.55 a barrel, while the January Brent oil contract fell 2.08% or 1.57 to trade at $74.06 a barrel.
CAD/USD was unchanged 0.37% to 0.72, while CAD/EUR unchanged 0.45% to 0.67.
The US Dollar Index Futures was up 0.49% at 104.89.
Marijuana multistate operator Curaleaf Holdings said it has secured a $40 million revolving line of credit from a “major commercial regional bank.”
Curaleaf will use the credit line from Needham Bank in Massachusetts for general corporate purposes and working capital, according to a news release.
Boris Jordan, the New York-based MSO’s chair and CEO, said the credit line will provide flexibility traditionally not available to the cannabis sector and allows the company to continue growing in what continues to be a difficult capital-raising environment.
“In my first few months in my new role as CEO, I’ve been focused on cost-savings measures across every facet of the business with the intent of driving profitable growth,” he said in a statement.
“With our new revolving credit facility, we will have an opportunity to better support various business needs across the globe.”
The two-year revolving credit facility has a maturity date of Dec. 15, 2026, with an interest rate of 7.99%.
Curaleaf secured the credit facility on the heels of reporting a $44 million loss in the third quarter.
The company’s third-quarter revenue of $331 million represents a decrease of 1% year-over-year.
After Curaleaf released its third-quarter financial report, Jordan said that he is optimistic the pro-marijuana stance that President-elect Donald Trump revealed on the campaign trail will lead to federal reform, including approval of rescheduling and the Secure And Fair Enforcement Regulation (SAFER) Banking Act.
“Trump closed his speech last night by saying ‘promises made, promises kept,’” Jordan told analysts.
“We’ve already been in touch with his transition team to ensure that the new administration follows through on its commitments made to the industry.
“In our expertise, historically, President Trump has put an effort to deliver on his campaign promises, and we see no reason why this time would be different.”
The company trades as CURA on the Toronto Stock Exchange and CURLF on the over-the counter markets.
Canadian fast-fashion retailer Groupe Dynamite Inc. has filed a preliminary prospectus for an initial public offering on the Toronto Stock Exchange X-T.
The Montreal-based owner of women’s clothing store chains Garage and Dynamite filed the documents with Canadian securities regulators on Thursday. The retailer disclosed that its revenues and net income have been growing in recent years, and noted in the prospectus that it plans to further grow its store presence in the United States and to expand to international markets. It currently has roughly 300 stores in the U.S. and Canada.
The number of shares and offering price for the IPO have yet to be disclosed.
The nearly 50-year-old company began with its first Garage store in the Place Versailles shopping mall in 1975, selling clothing and accessories. It launched Dynamite in 1983, to sell dressier fashions including office and party wear to slightly older shoppers. Garage became known for targeting a younger consumer with more casual styles.
Its owner and CEO, Andrew Lutfy, began working at that store in 1982 as a part-time stock clerk at age 18, worked his way up into management roles, and acquired a minority stake in the business within a few years. By the early 2000s, Mr. Lutfy and related entities completed the acquisition of the entire company.
At first limited to the Quebec market, the company began opening stores across Canada in the 1990s, followed by a U.S. expansion in the late 2000s. It now has 185 stores in Canada and 114 in the U.S., across 37 states, as well as e-commerce operations.
The company currently employs roughly 6,000 people, approximately 70 per cent of them working part time.
Groupe Dynamite was among the retailers hit hard by the COVID-19 pandemic, and sought creditor protection in 2020.
Following its restructuring, sales and profits have grown in recent years. In its last full fiscal year, ended Feb. 3, 2024, Groupe Dynamite’s revenues grew nearly 15 per cent to $800.8-million, compared to $697.4-million in the prior year. Net earnings grew to $85.8-million, up from $62.8-million the year before, according to the filing.
In the 12 months ending Aug. 3, the company had revenue of $888.4-million and net earnings of $127.8-million, according to the prospectus.
Groupe Dynamite has been working on refining its store presence. Since early 2022, it has opened 45 new locations but also closed 48 over the same period, and renovated or relocated 15 more.
The company is also planning to move further to international markets such as the U.K., starting with e-commerce expansion followed by store openings.
Groupe Dynamite’s business strategy focuses on quick turnover of the inventory in its stores, using an in-house design team to chase trends as they arise and “constantly creating exciting newness,” according to the documents. The company develops roughly 1,800 new styles each year, the documents said. Most of its products are sourced from China, with additional sourcing from Bangladesh and Cambodia.
The offering is being led by Goldman Sachs Canada Inc., BMO Nesbitt Burns Inc., RBC Dominion Securities Inc. and TD Securities Inc. The company plans to list the shares under the symbol GRGD.
Garbage magnate Patrick Dovigi vowed publicly Thursday that violence directed towards Green For Life Environmental Inc.’s property and at least one of its executives will not “derail or distract us from continuing to drive the business forward.”
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A gunman fired multiple shots at Dovigi’s Toronto home in late September. He wasn’t in the country and nobody was injured.
Arsonists have also hit several Green For Life Environmental Inc. (GFL) facilities in Ontario this year, including setting six commercial vehicles on fire in Windsor, Ont. this past summer, causing $1 million in damage.
The comments came during an earnings call regarding the company’s third-quarter results.
“I want to take a few minutes to talk about the security incidents that you may have read about in recent media reports in the context of where GFL is today,” Dovigi told analysts.
“I started this business in 2007 with one solid-waste transfer station and four old roll-off trucks and $250,000 in start-up capital. This December will be GFL’s 17th anniversary as a company and today we are the fourth-largest diversified environmental-services company in North America.”
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GFL has operations in 10 Canadian provinces and 25 U.S. states, he said.
“This year we are approaching $8 billion in annual revenue,” Dovigi said.
“We have millions of customers who trust us to provide them with their essential environmental services, including the over five-million households that we service across Canada and the United States weekly.”
GFL has “achieved this level of success by providing high-quality service at a fair price and through the more than 250 acquisitions we have completed to date, with many of those owner-operators staying on with us post-acquisition to continue to contribute to the integration of their businesses into GFL,” Dovigi said.
“We have a reputation in the industry of doing what we say we are going to do, and we’re proud of that reputation.”
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GFL investors include “the highest-quality institutions from private-equity funds to pension funds, sovereign wealth funds and leading financial institutions around the world,” Dovigi said.
Dovigi wouldn’t get into the details of the shootings or arsons.
“Regarding the recent events we are not going to comment on any specifics because the police are investigating these incidents and the investigations are ongoing,” he said.
“While the media likes to speculate, we would encourage everyone to allow the authorities to do their work. We are co-operating in the investigations and trust that the authorities will bring this to a successful resolution, hopefully in the near term.”
GFL is also working with a security consultant “to review our security measures and any additional precautions we should be taking,” Dovigi said.
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“While the authorities continue to do their work, we also remain focused on the safety and wellbeing of our employees, who … are the core to everything we do. The results we’ve achieved this quarter and throughout our history are a reflection of all of the hard work and dedication of GFL’s more than 20,000 employees. We have hundreds of facilities across our platform and these incidents are not going to derail or distract us from continuing to drive the business forward.”
GFL’s share price was hovering around $53 on the Toronto Stock Exchange in the days after a gunman fired multiple shots at Dovigi’s Rosedale home eight minutes before midnight on Sept. 29. It opened on the TSX Thursday above $60 and climbed to more than $62 a share by 10 a.m. before dipping slightly.
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Police say the shooting at Dovigi’s home near the intersection of Mount Pleasant Road and St. Clair Avenue was targeted, and that investigators have linked it to a second shooting about an hour later in the vicinity of Bayview Avenue and York Mills Road.
Nobody was injured in either shooting. Dovigi has disputed a newspaper report that the second shooting targeted the home of Ted Manziaris, a consultant with GFL.
Dovigi did not respond immediately Thursday to questions including whether he’s worried GFL employees could get hurt by violence aimed at the company, or whether it could hamper the looming sale of GFL’s environmental-services business, which it expects to bring in at least $6 billion in net proceeds.
But, when asked in the week after the shootings if he thought one of his competitors was trying to scare him, he told National Post: “I’ve been in business for 20 years. Who’s going to scare me? This is not the Sopranos.”
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Are federally insured banks warming up to the cannabis industry?
A recent deal announced by a major cannabis company based in Connecticut could indicate the answer is yes.
Stamford-based Curaleaf Holdings Inc., the world’s largest publicly traded cannabis company, announced this week that it has secured a new $40 million revolving credit facility with a major commercial regional bank.
Curaleaf, which operates four dispensaries and cultivation facility in the state and has other operations in the U.S. and internationally, said it will be able to draw down on the credit line “as needed for general corporate purposes and working capital needs.”
The company declined to name the bank involved in the deal, but Chairman and CEO Boris Jordan called the financing arrangement a “milestone event for Curaleaf.”
He said the “credit line provides flexibility traditionally not available to the cannabis sector, and allows us to continue growing Curaleaf as the leader of the global cannabis industry during what continues to be a difficult capital raising environment.”
Banks and credit unions have been skittish about serving the marijuana industry because cannabis remains illegal at the federal level. In short, because marijuana is still a Schedule 1 drug at the federal level, it is illegal for banks and credit unions to lend to such companies.
The Drug Enforcement Agency, at the urging of the Biden administration, is in the process of potentially reclassifying marijuana as a Schedule III drug, which would ease restrictions on cannabis use. But it’s not clear what impact that would have on bank financing for the industry.
Curaleaf, which trades on the Toronto Stock Exchange, earlier this year identified Stamford as its new headquarters.
The company operates in 17 states and had 19 cultivation sites and 147 retail locations in the U.S. as of August.
Montreal-based clothing retailer Groupe Dynamite Inc. says it has filed a preliminary prospectus for an initial public offering to list on the Toronto Stock Exchange.
The number of shares and offering price for the IPO have not yet been determined.
The company operates stores under both the Garage and Dynamite banners and has 300 stores across Canada and the U.S.
A majority of its new locations since 2022 have been in the U.S. market, where the company says it plans to continue growing.
It also has plans to expand in other jurisdictions such as the U.K.
The offering is being underwritten by a syndicate led by Goldman Sachs Canada Inc., BMO Nesbitt Burns Inc., RBC Dominion Securities Inc. and TD Securities Inc.
This report by The Canadian Press was first published Nov. 8, 2024.
The comments from the reported billionaire came during an earnings call regarding the company’s third quarter results
Garbage magnate Patrick Dovigi vowed publicly Thursday that violence directed towards Green For Life Environmental Inc.’s property and at least one of its executives will not “derail or distract us from continuing to drive the business forward.”
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A gunman fired multiple shots at Dovigi’s Toronto home in late September. He wasn’t in the country and nobody was injured.
Arsonists have also hit several Green For Life Environmental Inc. (GFL) facilities in Ontario this year, including setting six commercial vehicles on fire in Windsor, Ont. this past summer, causing $1 million in damage.
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The comments came during an earnings call regarding the company’s third-quarter results.
“I want to take a few minutes to talk about the security incidents that you may have read about in recent media reports in the context of where GFL is today,” Dovigi told analysts.
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Article content
“I started this business in 2007 with one solid-waste transfer station and four old roll-off trucks and $250,000 in start-up capital. This December will be GFL’s 17th anniversary as a company and today we are the fourth-largest diversified environmental-services company in North America.”
GFL has operations in 10 Canadian provinces and 25 U.S. states, he said.
“This year we are approaching $8 billion in annual revenue,” Dovigi said.
“We have millions of customers who trust us to provide them with their essential environmental services, including the over five-million households that we service across Canada and the United States weekly.”
GFL has “achieved this level of success by providing high-quality service at a fair price and through the more than 250 acquisitions we have completed to date, with many of those owner-operators staying on with us post-acquisition to continue to contribute to the integration of their businesses into GFL,” Dovigi said.
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Story continues below
Article content
“We have a reputation in the industry of doing what we say we are going to do, and we’re proud of that reputation.”
GFL investors include “the highest-quality institutions from private-equity funds to pension funds, sovereign wealth funds and leading financial institutions around the world,” Dovigi said.
Dovigi wouldn’t get into the details of the shootings or arsons.
“Regarding the recent events we are not going to comment on any specifics because the police are investigating these incidents and the investigations are ongoing,” he said.
“While the media likes to speculate, we would encourage everyone to allow the authorities to do their work. We are co-operating in the investigations and trust that the authorities will bring this to a successful resolution, hopefully in the near term.”
Advertisement 5
Story continues below
Article content
GFL is also working with a security consultant “to review our security measures and any additional precautions we should be taking,” Dovigi said.
“While the authorities continue to do their work, we also remain focused on the safety and wellbeing of our employees, who … are the core to everything we do. The results we’ve achieved this quarter and throughout our history are a reflection of all of the hard work and dedication of GFL’s more than 20,000 employees. We have hundreds of facilities across our platform and these incidents are not going to derail or distract us from continuing to drive the business forward.”
GFL’s share price was hovering around $53 on the Toronto Stock Exchange in the days after a gunman fired multiple shots at Dovigi’s Rosedale home eight minutes before midnight on Sept. 29. It opened on the TSX Thursday above $60 and climbed to more than $62 a share by 10 a.m. before dipping slightly.
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Police say the shooting at Dovigi’s home near the intersection of Mount Pleasant Road and St. Clair Avenue was targeted, and that investigators have linked it to a second shooting about an hour later in the vicinity of Bayview Avenue and York Mills Road.
Nobody was injured in either shooting. Dovigi has disputed a newspaper report that the second shooting targeted the home of Ted Manziaris, a consultant with GFL.
Dovigi did not respond immediately Thursday to questions including whether he’s worried GFL employees could get hurt by violence aimed at the company, or whether it could hamper the looming sale of GFL’s environmental-services business, which it expects to bring in at least $6 billion in net proceeds.
But, when asked in the week after the shootings if he thought one of his competitors was trying to scare him, he told National Post: “I’ve been in business for 20 years. Who’s going to scare me? This is not the Sopranos.”
Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our daily newsletter, Posted, here.
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Published Nov 08, 2024 • 13 minute read
Tigris Trial Enrollment at 135 Patients
Strengthened Balance Sheet with Expected Funds to Complete Tigris Trial Enrollment
TORONTO, Nov. 08, 2024 (GLOBE NEWSWIRE) — Spectral Medical Inc. (“Spectral” or the “Company”) (TSX: EDT), a late-stage theranostic company advancing therapeutic options for sepsis and septic shock, today announced its financial results for the third quarter ended September 30, 2024, and provided a corporate update.
Spectral has continued its significant progress throughout the third quarter of 2024 both clinically and operationally and year-to-date enrolled 54 patients for a total of 135 patients out of the 150 total patients target. The Company is focused on the final push to fully enroll and finish the Tigris trial, bringing the Company closer to FDA submission and potential FDA approval. In parallel to its clinical trial, the Company continues to work closely with its commercialization partner, Baxter.
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Dr. John Kellum, Chief Medical Officer of Spectral Medical, stated, “We continue to witness robust enrollment activity in 2024, with record enrollment rates over several months of the year. Screening rates have been at approximately 50% higher throughout the year compared to 2023. Tigris is approaching the final phase of the trial, and we have very dedicated investigators who believe in the project. In October, we experienced some disruptions due to Hurricane Helene – mainly the national saline shortage (required to prepare the device for treatment). Our clinical team is focused on trial site support and is working to help resolve this issue. We are committed alongside our trial sites to advancing Tigris and believe PMX, if ultimately approved, will play a major role in reducing the tragic rates of mortality caused by sepsis.”
“I am pleased with the increased level of activity across the Company and the resultant ramp up of patient enrollment throughout 2024. With the recent medical supply chain events negatively impacting enrollment, we anticipate a slight shift in finalizing Tigris enrollment into the early 2025 timeframe,” said Chris Seto, Chief Executive Officer of Spectral. “That being said, with the receipt of gross proceeds of approximately $11 million since the beginning of April, we believe we have secured funding to finalize Tigris enrollment.”
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Corporate Highlights During & Subsequent to Third Quarter 2024
Tigris Trial and Regulatory Program
Top Stories
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PMX Commercialization
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Funding
On July 29, 2024, 10,982,500 share warrants expired. These expired share warrants were issued in conjunction with the Company’s approximately $10 million unit offering which closed on July 27, 2021. As at the time of this MD&A, the Company has 7,730,464 share warrants outstanding.
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On September 25, 2024, 225 Notes having a face value of USD $1,000 were converted into 764,755 Common Shares at a conversion rate of 3,399 Common Shares per USD $ 1,000 principal amount of the Notes.
Change of Auditors
Financial Review
Revenue for the three-months ended September 30, 2024 was $502,000 compared to $397,000 for the same three-month period last year, representing an increase of $105,000 or 26%. Revenue for nine months ended September 30, 2024, was $1,641,000 and $1,233,000 for the same period last year, representing an increase of $408,000 or 33%. Royalty revenue for the three-months ended September 30, 2024 was $NIL and $NIL for the same period prior year. Royalty revenue for the nine months ended September 30, 2024 was $135,000 compared to $126,000 for the same nine-month period last year. This is due to an increase in usage of the Company’s IP from one customer. Product Revenue for the three-months ended September 30, 2024 was $274,000 compared to $186,000 for the same three-month period last year, representing an increase of $88,000 or 47% Product revenue for nine months ended September 30, 2024 was $841,000 and $562,000, representing an increase of $279,000 or 50%.
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Operating expenses for the three-months ended September 30, 2024, were $10,497,000, compared to $4,072,000 for the same period in the preceding year, an increase of $6,425,000 or 158%. The increase is majorly due to the change in Fair value adjustment for derivative liabilities which increased by $6,075,000 and also the Interest expense increased by $628,000 due to convertible notes payable issued on September 7, 2023, May 30, 2024 and July 19, 2024.
Operating expenses for the nine months ended September 30, 2024 were $20,194,000 compared to $10,292,000 for the same period in the preceding year, an increase of $9,902,000 or 96%. The change is primarily due to an increase in interest expense by $1,339,000 and Fair value adjustment in derivative liability increased by $6,530,000. All these increases are due to the funding received during September 2023, May 2024 and July 19, 2024. In addition, share-based compensation expense increased by $197,000. Lastly, consulting and professional fees increased by $352,000 due to increased site and patient fees related to the Tigris trial.
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Clinical development and regulatory program costs (as disclosed in Note 13 of the condensed interim consolidated financial statements) were $638,000 for the three-months ended September 30, 2024 compared to $1,263,000 for the same period in the prior year. For the nine months ended September 30, 2024, clinical development costs are $3,015,000 compared to $3,258,000 for the corresponding period in the prior year. A significant portion of clinical trial and regulatory costs consists of consulting and professional fees paid to contract research organizations, clinical sites, and other clinical and regulatory consultants. The decrease in costs reflects decreased start up activity with respect to the initialization of new clinical sites and the absence of upfront CRO switching costs which were experienced in 2023.
Loss for the three-months ended September 30, 2024 was $9,995,000, $(0.04) per share compared to a loss of $3,804,000, $(0.01) per share for the same period in the prior year. The increased loss of $6,191,000 was due to increased operating expenses, partially offset by a reduction in loss from discontinued operations of $130,000 related to the reduction in Dialco operating expenses.
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Loss for the nine months ended September 30, 2024 was $18,556,000, $(0.07) per share, compared to a loss of $9,184,000 $(0.03) per share, for the same period in the prior year. The increased loss of $9,372,000 was due to operating expenses, partially offset by a reduction in loss from discontinued operations of $122,000 related to the reduction in Dialco operating expenses.
The Company concluded the third quarter of 2024 with cash of $5,759,000 compared to $2,952,000 of cash on hand as of December 31, 2023.
The total number of common shares outstanding for the Company was 282,815,223 at September 30, 2024.
About Spectral
Spectral is a Phase 3 company seeking U.S. FDA approval for its unique product for the treatment of patients with septic shock, Toraymyxin™ (“PMX”). PMX is a therapeutic hemoperfusion device that removes endotoxin, which can cause sepsis, from the bloodstream and is guided by the Company’s Endotoxin Activity Assay (EAA™), the only FDA cleared diagnostic for the risk of developing sepsis.
PMX is approved for therapeutic use in Japan and Europe and has been used safely and effectively on more than 340,000 patients to date. In March 2009, Spectral obtained the exclusive development and commercial rights in the U.S. for PMX, and in November 2010, signed an exclusive distribution agreement for this product in Canada. In July 2022, the U.S. FDA granted Breakthrough Device Designation for PMX for the treatment of endotoxic septic shock. Approximately 330,000 patients are diagnosed with septic shock in North America each year.
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The Tigris Trial is a confirmatory study of PMX in addition to standard care vs standard care alone and is designed as a 2:1 randomized trial of 150 patients using Bayesian statistics. Endotoxic septic shock is a malignant form of sepsis https://www.youtube.com/watch?v=6RANrHHi9L8.
The trial methods are detailed in “Bayesian methods: a potential path forward for sepsis trials”.
Spectral is listed on the Toronto Stock Exchange under the symbol EDT. For more information, please visit www.spectraldx.com.
Forward-looking statement
Information
in
this
news
release
that
is
not
current
or
historical
factual
information
may
constitute
forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of Spectral and anticipated events or results, are assumptions based on beliefs of Spectral’s senior management
as
well
as
information
currently
available
to
it.
While
these
assumptions
were
considered
reasonable by Spectral at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are
subject
to
a
number
of
risks
and
uncertainties,
including
the
availability
of
funds
and
resources
to
pursue
R&D projects, the successful and timely completion of clinical studies, the ability of Spectral to take advantage of business opportunities in the biomedical industry, the granting of necessary approvals by regulatory authorities as well as general economic, market and business conditions, and could differ materially from what is currently expected.
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The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this statement.
For further information, please contact:
| Spectral Medical Inc. | |||||
| Condensed Interim Consolidated Statements of Financial Position | |||||
| In CAD (000s), except for share and per share data | |||||
| (Unaudited) | |||||
| Notes | September 30, 2024 |
December 31, 2023 (Refer Note 3) |
January 1, 2023 (Refer Note 3) |
||
| $ | $ | $ | |||
| Assets | |||||
| Current assets | |||||
| Cash | 5,759 | 2,952 | 8,414 | ||
| Trade and other receivables | 337 | 186 | 1,056 | ||
| Inventories | 318 | 366 | 340 | ||
| Prepayments and other assets | 882 | 621 | 276 | ||
| 7,296 | 4,125 | 10,086 | |||
| Non-current assets | |||||
| Right-of-use-asset | 475 | 567 | 464 | ||
| Property and equipment | 268 | 326 | 237 | ||
| Intangible asset | 180 | 193 | 211 | ||
| Investment in Dialco | – | – | 998 | ||
| Total assets | 8,219 | 5,211 | 11,996 | ||
| Liabilities | |||||
| Current liabilities | |||||
| Trade and other payables | 3,004 | 2,820 | 3,087 | ||
| Current portion of contract liabilities | 7 | 502 | 727 | 696 | |
| Current portion of lease liability | 126 | 121 | 96 | ||
| Notes Payable | 8&3 | 12,890 | 7,940 | 3,566 | |
| Derivative Liability | 8&4 | 17,405 | 6,310 | 2,674 | |
| 33,927 | 17,918 | 10,119 | |||
| Non-current liability | |||||
| Lease liability | 404 | 500 | 420 | ||
| Non-current portion of contract liabilities | 7 | 5,170 | 3,342 | 4,011 | |
| Total liabilities | 39,501 | 21,760 | 14,550 | ||
| Shareholders’ (deficiency) equity | 10 | ||||
| Share capital | 89,871 | 87,061 | 87,050 | ||
| Contributed surplus | 10,148 | 8,916 | 8,773 | ||
| Share-based compensation | 11,308 | 10,385 | 8,908 | ||
| Warrants | 1,384 | 2,526 | 2,490 | ||
| Deficit | (143,993) | (125,437) | (109,775) | ||
| Total shareholders’ (deficiency) equity | (31,282) | (16,549) | (2,554) | ||
| Total liabilities and shareholders’ (deficiency) equity | 8,219 | 5,211 | 11,996 | ||
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| Spectral Medical Inc. | ||||||
| Condensed Interim Consolidated Statements of Loss and Comprehensive Loss | ||||||
| In CAD (000s), except for share and per share data | ||||||
| (Unaudited) | ||||||
| Revised | Revised | |||||
| (Refer Note 16) | (Refer Note 16) | |||||
| Notes | Three months ended Sep 30, 2024 |
Three months ended Sep 30, 2023 |
Nine months ended Sep 30, 2024 |
Nine months ended Sep 30, 2023 |
||
| $ | $ | $ | $ | |||
| Revenue | 7&12 | 502 | 397 | 1,641 | 1,233 | |
| Expenses | ||||||
| Raw materials and consumables used | 327 | 305 | 994 | 722 | ||
| Salaries and benefits | 14 | 1,078 | 986 | 3,101 | 2,918 | |
| Consulting and professional fees | 1,282 | 1,198 | 3,652 | 3,300 | ||
| Regulatory and investor relations | 284 | 110 | 585 | 414 | ||
| Travel and entertainment | 136 | 63 | 407 | 245 | ||
| Facilities and communication | 90 | 81 | 353 | 245 | ||
| Insurance | 105 | 102 | 315 | 290 | ||
| Depreciation and amortization | 64 | 57 | 191 | 172 | ||
| Interest expense | 8 | 970 | 342 | 2,178 | 839 | |
| Foreign exchange loss | (399) | 46 | 129 | (205) | ||
| Share-based compensation | 241 | 340 | 1,497 | 1,300 | ||
| Other expense | 163 | 320 | 704 | 289 | ||
| Net loss on joint arrangement | 6 | – | 41 | – | 205 | |
| Fair value adjustment derivative liabilities | 8 | 6,156 | 81 | 6,088 | (442) | |
| 10,497 | 4,072 | 20,194 | 10,292 | |||
| Loss and comprehensive loss for the period from continuing operations | (9,995) | (3,675) | (18,553) | (9,059) | ||
| Gain (loss) from discontinued operations | 5 | – | (130) | (3) | (125) | |
| Loss and comprehensive loss for the period | (9,995) | (3,805) | (18,556) | (9,184) | ||
| Basic and diluted loss from continuing operations per common share | 11 | (0.04) | (0.01) | (0.07) | (0.03) | |
| Basic and diluted loss from discontinued operations per common share | 11 | (0.00) | (0.00) | (0.00) | (0.00) | |
| Basic and diluted loss per common share | 11 | (0.04) | (0.01) | (0.07) | (0.03) | |
| Weighted average number of common shares outstanding – basic and diluted | 11 | 281,705,359 | 278,604,718 | 280,269,516 | 278,569,902 | |
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| Spectral Medical Inc. | |||||||||||
| Condensed Interim Consolidated Statements of Changes in Shareholders’ Deficiency | |||||||||||
| In CAD (000s) | |||||||||||
| (Unaudited) | |||||||||||
| Notes | Number of Shares |
Share Capital |
Contributed surplus |
Share-based compensation | Warrants | Deficit | Total Shareholders’ (deficiency) equity | ||||
| $ | $ | $ | $ | $ | $ | ||||||
| Balance January 1, 2023 | 278,547,804 | 87,050 | 8,773 | 8,908 | 2,490 | (109,775) | (2,554) | ||||
| RSU released | 10 | 28,457 | 11 | – | (11) | – | – | – | |||
| Warrants issued | 10 | – | – | – | – | 179 | – | 179 | |||
| Warrants expired | 10 | – | – | 143 | – | (143) | – | – | |||
| Loss and comprehensive loss for the period | – | – | – | – | – | (9,184) | (9,184) | ||||
| Share-based compensation | 10 | – | – | – | 1,300 | – | – | 1,300 | |||
| Revised (Refer note 16) Balance, September 30, 2023 | 278,576,261 | 87,061 | 8,916 | 10,197 | 2,526 | (118,959) | (10,259) | ||||
| Loss and comprehensive loss for the period | – | – | – | – | – | (6,478) | (6,478) | ||||
| Share-based compensation | 10 | – | – | – | 188 | – | – | 188 | |||
| Balance December 31, 2023 | 278,576,261 | 87,061 | 8,916 | 10,385 | 2,526 | (125,437) | (16,549) | ||||
| Balance January 1, 2024 | 278,576,261 | 87,061 | 8,916 | 10,385 | 2,526 | (125,437) | (16,549) | ||||
| Warrants exercised | 10 | 982,500 | 618 | – | – | (121) | – | 497 | |||
| Warrants issued | 10 | – | – | – | – | 211 | – | 211 | |||
| Warrants expired | 10 | – | – | 1,232 | – | (1,232) | – | – | |||
| Share Options Exercised | 10 | 1,867,627 | 1,163 | – | (524) | – | – | 639 | |||
| RSU released | 10 | 114,210 | 50 | – | (50) | – | – | – | |||
| Notes Conversion | 10 | 1,274,625 | 979 | – | – | – | – | 979 | |||
| Loss and comprehensive loss for the period | – | – | – | – | – | (18,556) | (18,556) | ||||
| Share-based compensation | 10 | – | – | – | 1,497 | – | – | 1,497 | |||
| Balance September 30, 2024 | 282,815,223 | 89,871 | 10,148 | 11,308 | 1,384 | (143,993) | (31,282) | ||||
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| Spectral Medical Inc. | |||
| Condensed Interim Consolidated Statements of Cash Flows | |||
| In CAD (000s) | |||
| (Unaudited) | |||
| Revised | |||
| (Refer note 16) | |||
| Nine months ended September 30, 2024 |
Nine months ended September 30, 2023 |
||
| Cash flow provided by (used in) | |||
| Operating activities | |||
| Loss and comprehensive loss for the period | (18,556) | (9,184) | |
| Adjustments for: | |||
| Depreciation on right-of-use asset | 92 | 73 | |
| Depreciation on property and equipment | 85 | 87 | |
| Amortization of intangible asset | 13 | 19 | |
| Amortization of deferred financing fee | 788 | 373 | |
| Unrealized foreign exchange gain/loss | 76 | (155) | |
| Interest expense on lease liability | 25 | 30 | |
| Accreted interest on notes payable | 2,154 | 809 | |
| Share-based compensation expense | 1,497 | 1,300 | |
| Net loss on joint venture arrangement | – | 205 | |
| Fair value adjustment derivative liabilities | 6,088 | (442) | |
| Changes in items of working capital: | |||
| Trade and other receivables | (151) | 337 | |
| Inventories | 48 | 36 | |
| Prepayments and other assets | (261) | (636) | |
| Trade and other payables | (24) | (781) | |
| Contract liabilities | 1,603 | (647) | |
| Net cash used in operating activities | (6,523) | (8,576) | |
| Investing activities | |||
| Purchase of property and equipment | (28) | (15) | |
| Net cash used in investing activities | (28) | (15) | |
| Financing activities | |||
| Financing charges paid | (766) | (641) | |
| Interest expense paid | (794) | (472) | |
| Lease liability payments | (115) | 110 | |
| Proceeds from share options exercised | 639 | – | |
| Proceeds from share warrants exercised | 497 | – | |
| Proceeds from 9% convertible notes issued | 9,897 | 6,212 | |
| Net cash provided by financing activities | 9,358 | 5,209 | |
| Change in cash | 2,807 | (3,383) | |
| Cash, beginning of period | 2,952 | 8,414 | |
| Cash, end of period | 5,759 | 5,031 | |
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Telus posted net income of $257-million or 19 cents a share, up 87 per cent from last year.Frank Gunn/The Canadian Press
Telus Corp. T-T reported higher third-quarter profit and raised its dividend, despite competitive headwinds in the sector that put pressure on the telecom’s new wireless subscriber numbers.
In its results released Friday, the company lowered telecom revenue growth guidance for 2024 to “slightly below” its expected range of 2 per cent to 4 per cent, citing an intensely competitive wireless market. Canada’s mobile providers have offered aggressive promotional pricing to win customers this year – a trend that is likely to continue into the typically discounted holiday season.
Telus posted net income of $257-million or 19 cents a share, up 87 per cent from last year as a result of customer growth across its various business lines, broad-based cost reduction efforts and better margins across its non-telecom businesses. (Last year’s income was affected by higher restructuring and financing costs.) Operating revenue was $5.1-billion, up 1.8 per cent.
Telus added net 130,000 wireless subscribers during the quarter, in line with analyst expectations but down 30,000 from last year. This compared with 102,000 for BCE Inc. BCE-T and 194,000 at Rogers Communications Inc. RCI-B-T
Average revenue per user (ARPU) was down by 3.4 per cent, similar to last quarter. Telus said this was because customers were signing up for plans with lower base rates. The company’s churn rate – the measure of how many customers cancelled or did not renew subscriptions during the quarter – was also up, but less so than its competitors.
“In a tough operating environment and relative to peers, we view Q3/24 results that were in line to slightly better than forecast as the best of the bunch,” said RBC Dominion Securities Inc. analyst Drew McReynolds. Telus shares closed up 79 cents at $21.81 on the Toronto Stock Exchange Friday.
Overage and roaming revenues fell this quarter, another trend common across the industry, as subscribers are increasingly opting for plans with more or unlimited data.
“Overall, this was a relatively quiet update for [Telus], which will probably be welcomed by telecom investors given recent sector developments,” said Desjardins analyst Jerome Dubreuil in a note to investors Thursday morning. In the past few weeks, Rogers raised $7-billion in a structured equity deal to pay down debt and BCE Inc acquired a U.S. fibre internet company for US$5-billion .
On a call with analysts, Telus chief executive officer Darren Entwistle said the company still sees “significant opportunities” in fibre and 5G revenue growth, as well as opportunities for the company to improve cost efficiency.
The company also announced it was raising its dividend by 3.4 per cent, which was expected by analysts. Investors may be sensitive to this hike, after news this week that Bell Canada owner of BCE Inc. paused increases to its dividend for the first time in 16 years.
BCE’s dividend is currently yielding about 10 per cent, while Telus’s dividend yields about 7.7 per cent. Mr. Dubreuil said he considers Telus’s payout ratio high, but that that should improve in future years as the company increases its free cash flow.
Meanwhile, revenues from Telus’s health and agriculture segments were up 4 and 20 per cent, respectively, from last year.
Several years ago, Telus was expected to spin those businesses out with initial public offerings, but has not yet done so after the poor performance of its Telus International spinout, whose stock has dropped nearly 90 per cent since pandemic highs.
Telus chief financial officer Doug French said in an interview Friday that the company is still strategizing around bringing in a partner or doing an initial public offering to help the businesses scale up. “We’ve had a lot of interest from third parties to date,” Mr. French said. “There is definitely opportunity that would be in the next year or two.”
Mr. Entwistle told analysts on the call the company has “prospective monetization opportunities” for partnerships, IPOs or a “combination of both” for these two business lines.
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