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A Pengrowth Energy Corp. pipeline in Alberta.Ewan Nicholson

Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.

Imvescor Restaurant Group Inc. (IRG-T) reported third-quarter system sales of $110.4-million up from $99.8-million a year earlier.

Revenue was $13.3-million and versus $11.5-million, the company said. Analysts were expecting revenue $13.2-million.

Same-store restaurant sales increased 4.6 per cent compared to a year earlier.

Net earnings were $3.8-million or 6 cents per share compared to $3.1-million or 5 cents a year earlier. Analysts were expecting earnings of 7 cents.

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Pengrowth Energy Corp. (PGF-T; PGH-N) has entered an agreement to sell its remaining Swan Hills assets in north central Alberta for $150-million.

"When combined with the approximate $18-million deposit from the initial sales process which was terminated on July 11, 2017, total consideration for the sold assets will be approximately $168-million before closing adjustments," the company said.

"On closing, the sale will complete the company's exit from the Swan Hills area and provide it with additional financial liquidity."

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Currency Exchange International, Corp. (CXI-T) said revenues increased 29 per cent to $9.9-million in the third quarter.

Net income increased 31 per cent to $1.9-million.

Analysts were expecting revenue of $8.6-million and net income of $1.8-million.

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Exfo Inc. (EXFO-Q; EXF-T) says it's in negotiations to acquire Yenista Optics, a privately held company based in Lannion, France that supplies optical test equipment for the R&D and manufacturing markets.

"This transaction, if completed, would allow EXFO to leverage Yenista's best-in-class technology across its global sales channels to expand market share," stated Germain Lamonde, executive chairman of Exfo's board.

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Hudson's Bay Co.'s (HBC-T) board of directors has hired – or is hiring – J.P. Morgan to advise it on strategic options including going private, a U.S. activist investor in the retailer suggests.

And Toronto-based HBC's management has hired Bank of America to look into a possible buyout and privatization of the retailer, investor Land & Buildings Investment Management LLC believes.

In a statement on Wednesday responding to HBC's weak second-quarter results, the activist investor lashes out at HBC for its "lack of urgency in addressing deep undervaluation."

And it criticizes HBC for a lack of transparency in light of its hiring an investment bank to look at strategic alternatives as well as potential "serious third-party interest in HBC's German assets." HBC owns Galeria Kaufhof in Germany, its namesake in Canada and, in the United States, Saks Fifth Avenue, Lord & Taylor and Gilt.com.

The rising tensions between Canada's oldest retailer and its minority shareholder come as HBC races to turn around its flagging fortunes amid a fast-changing retail environment and activist pressures for it to generate more value from its real estate assets.

Investors over all seemed enthusiastic about a potential sale of HBC. Its shares jumped more than 8 per cent to close at $12.19 on the TSX after having fallen for much of Wednesday before Land & Buildings issued its statement. HBC's real estate alone has been valued at $35 a share, which is almost three times Wednesday's closing price of $12.19.

Hudson's Bay has resisted taking radical actions, such as selling Saks or turning its crown jewel – its flagship store in New York – into boutique retailers on the first three floors and high-end condominiums on the upper floors.

Land & Buildings, which holds more than a 4-per-cent stake in HBC, has urged the retailer to look at monetizing its real estate holdings, go private and divest its European business.

But the retailer this week expanded into the Netherlands with its first store outside of Canada under the Hudson's Bay name.

Land & Buildings again threatened Wednesday to call a special board meeting to remove current directors unless HBC takes "decisive action in the near-term."

--Marina Strauss

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LXRandCo, Inc. (LXR-T), which sells branded vintage luxury handbags and accessories, says it is opening five new locations in the Netherlands throughout September 2017.

"The new stores will be within Hudson's Bay's first five stores in the Netherlands, beginning on September 7 with Hudson's Bay's flagship store in the bustling Rokin area of Amsterdam," the company said.

It said five new locations, as well as the previously announced 16 locations with an existing U.S. partner and the five locations with House of Fraser in the UK, bring LXRandCo's existing and announced pro forma store count to 87, of which 24 are in Europe.

"We are thrilled to expand our partnership with Hudson's Bay as this iconic Canadian retailer grows internationally," said Fred Mannella, CEO of LXRandCo.

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Transat A.T. Inc. (TRZ-T) reported revenues of $733.2-million for the third quarter ended July 31, compared with $663.6-million for the same period in 2016.

Transat reported adjusted net income of $26.9 million or 73 cents per share compared with $2.5-million or 7 cents per share in 2016.

Analysts were expecting revenue of $728.3-million and earnings of 73 cents.

In its outlook, the company said if current trends stick, "and despite the recent increase in fuel prices following Hurricane Harvey, which will be attenuated by the hedging program," it expects adjusted operating income for the fourth quarter to be similar to 2015, which was $70.8-million for continuing operations.

"It is especially worth noting that other hurricanes, like Irma, could impact these forecasts," the company stated.

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Pure Multi-Family REIT LP (RUF.UN-T) says both of its Houston properties have avoided "material damage" from Tropical Storm Harvey.

The company said its Broadstone Walker Commons property "is in very good condition with only minor leaks and minimal damage."

Its Deer Park Apartments property requires further assessment, "but we do not anticipate any material damages."

It said repairs are underway at both properties.

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Pacific Insight Electronics Corp. (PIH-T) says it has received a competing takeover proposal from Shenzhen Kaizhong Precision Technology Co. Ltd.

"The company also notes that less than two hours after the company received the proposal from Kaizhong (and before the company and its directors had an opportunity to consider Kaizhong's proposal), Kaizhong issued a news release announcing its proposal," the company stated in a release.

The company has agreed to a deal with Methode Electronics, Inc. (MEI-N) for $18.50 per share.

Pacific Insight directors have reviewed the proposal from Kaizhong and "have concerns" including the prior approval of Kaizhong's shareholders.

"Under the agreement with Methode, the company cannot accept a proposal from a third party that is subject to shareholder approval. The Kaizhong proposal, therefore, cannot be a 'superior proposal' within the meaning of the agreement with Methode," Pacific Insight stated.

It also said the purchase price for the transaction proposed by Kaizhong is to be funded largely by bank financing and is subject to certain government approvals in China.

Pacific Insights is recommending shareholders support the transaction with Methode.

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Dominion Diamond Corp. (DDC-T; DDC-N) reported second-quarter sales of $239.8-million (U.S.) up from $160-million a year earlier.

Its net income was $31.1-million or 39 cents per share compared to a loss of $37.9-million or 39 cents a year ago. Analysts were looking for earnings of 25 cents in the most recent quarter.

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