You may not have heard of these companies but its shares are making a statement of late. The following five small and micro-cap Canadian companies have seen stock price surges of anywhere between 31% and 236% during the past two months, or less.
Levon Resources Ltd. (TSX: LVN): Levon, which is developing a promising silver/gold/zinc project in Mexico (Cordero), announced on March 20, 2015 that it would acquire Israel-based SciVac Ltd., a life sciences and biotechnology company that is producing a 3rd generation Hepatitis B vaccine. Existing Levon shareholders will receive one new common share of Levon (68.4% of which will be controlled by the former holders of SciVac shares) and 0.5 of a common share of a spinoff company that will hold all the mineral properties, including Cordero. The spinoff company will have approximately $20.1 million in working capital, including about $3 million in cash, as well as 35,178,572 shares of Pershing Gold Corporation with current estimated value of $16 million.
Levon’s stock price dropped 18% on the news but has rallied about 31% since (10 days) to its current price of $0.53. Business model changes seem to be a sign of the times for the beleaguered junior mining industry. At least Levon is not trying to grow medical marijuana.
Urban Communications Inc. (TSXV: UBN): Urban specializes in the construction, operation and management of fibre optic telecommunications networks and the delivery of broadband subscriber services throughout high density corridors of Vancouver and Victoria, British Columbia. The company considers itself a low-cost, high-margin Internet Service Provider, and it announced on March 19, 2015, that it has launched Canada’s first-ever 1Gbps high-speed Internet service to residential users in Metro Vancouver.
For fiscal 2013, Urban recorded revenue of $894,234 with a loss of $0.14 a share, which was an improvement from a $0.19 per share loss in 2012. The company’s share value, meanwhile, has doubled during the past two months to its present price of $0.18.
Intema Solutions Inc. (TSXV: ITM): Intema provides online marketing for medium and large companies, which includes permission-based email marketing. During fiscal 2013, the company reported revenue of $1,065,173 and a net loss $383 594 while reducing its long-term debt by 45%.
During 2014, so far, Intema has been profitable for its first three quarters and continues to reduce its long-term debt. In its most recent quarter (Q3), the company announced revenue of $424,499, up from $329,667 during the same period last year. And on March 20, 2015, Intema said it has signed an agreement with a major book retailer in Canada to deploy the company’s Predictive Marketing Engine. Intema Solutions’ stock price has risen 33% during the past five trading session to $0.18 a share.
SoMedia Networks (TSXV: VID): SoMedia produces what it calls “Scalable Video,” which is professionally shot video content, in any volume, anywhere in North America, delivered in 14 days or less. The company is driven to make video advertising affordable to small and medium sized businesses, by managing a network of 3,700 videographers that are ranked internally on various criteria, such as framing, lighting, and sound quality.
On March 10, 2015, SoMedia reported that auto collision repair company Maaco Franchising, LLC, has selected it to deliver video production to its network of more than 460 franchises in the U.S. and Canada.
The company’s most recent quarter (Q3) saw sales surge 136% from the same period last year to $306,653, while its operating costs decreased by 31% over the same time period. SoMedia has yet to turn a profit and ended fiscal 2013 with a working capital deficit of $2,388,925. The company’s share price, however, has soared 236% during the past two months and is currently trading at $0.37.
AirIQ Inc. (TSXV: IQ): AirIQ has built a recurring revenue business by providing GPS tracking solutions. The company provides vehicle owners with services that include instant vehicle locating, boundary notification, automated inventory reports, maintenance reminders, security alerts and vehicle disabling and unauthorized movement alerts.
During its most recent quarter (Q3), AirIQ’s revenue rose 12% to $669,633, while swinging to a profit of $43,732. About 72% of its revenue was recurring in this period.
On April 2, 2015, the company announced record unit shipments for its current quarter. Its stock price, meanwhile, has jumped 54% during the past month to a recent close of $0.10 a share.
