Apr 13, 2020
What to know from Corporate Canada: April 13, 2020
By Noah Zivitz
Management teams and boards of directors are being tested like never before by the COVID-19 pandemic, and every day brings a long list of updates ranging from forecast suspensions, to job cuts, and more. And we want to make it easier for you to track those disclosures. So every morning, in this space, you can look forward to a quick snapshot of some of the notable updates from Corporate Canada on how they’re managing COVID-19 uncertainty.
-No surprise really, but Indigo Books & Music today warned the pandemic will have a “material impact” on its performance this fiscal year. The retailer also said it brought 545 retail employees back onto its payroll as a result of the emergency wage subsidy program.
-Fairfax Financial says it is donating US$2 million to food banks and humanitarian organizations involved in supporting those who are most disadvantaged. The donation is being evenly split between Canada and the U.S.
-The Keg Royalties Income Fund is slashing its monthly distribution to 3.5 cents per united from 9.46 cents. In a release, the company said it’s “nearly certain” that the steakhouse chain won’t be able to start re-opening restaurants before June in a best case scenario.
-Aurora Cannabis announced this morning it will consolidate shares on a 12:1 basis in response to a listing notice from the NYSE as a result of its shares having sagged below US$1. The pot producer also said it plans to bolster its balance sheet by issuing more common shares under an at-the-market program that has US$350 million in untapped capacity.
-Bausch Health says it’s been given the go-ahead from Health Canada to conduct a clinical study of Virazole’s effectiveness in treating adults who are hospitalized with respiratory distress as a result of COVID-19. CEO Joseph Papa said his company will “remain focused – for as long as necessary – on doing our part to help end this unprecedented global health pandemic."
-Apotex announced it has started producing hand sanitizer to support front-line workers, with an initial run churning out 500 one-litre bottles. An Apotex VP said in a release that 1,200 additional bottles will be produced in the weeks ahead.
-The Ontario government said Saturday it has received more than 14,000 submissions from businesses and entrepreneurs that want to contribute to the drive for personal protective equipment and other goods in the fight against COVID-19. If you missed it, check out David George-Cosh’s weekend BNNBloomberg.ca feature on the private sector’s quick pivot to assist, and we’ll hear more about their role this afternoon when Amanda Lang speaks with Automotive Parts Manufacturers’ Association President Flavio Volpe.
-FROM LATE THURSDAY: Shaw Communications withdrew its 2020 forecasts while stating it nevertheless expects full-year free cash flow to be “substantially in line” with its previous outlook and “supportive of our current dividend levels.” The company is also hitting pause on share buybacks to preserve liquidity.
-FROM LATE THURSDAY: West Fraser Timber said it’s adopting a shareholder rights plan (ie, poison pill), without giving any indication that a potential takeover bid (or creeping bid) is actually in the works. Not to create a causal link, but worth noting Jim Pattison is WFT’s largest shareholder and, according to the Bloomberg terminal, added to his position in late March.
