4 Canadian Small Caps with Negative Shareholders’ Equity

Negative shareholders’ equity is a scary thought for investors as it could indicate an impending bankruptcy. Only about 20 out of the 800+ Canadian small cap companies are currently experiencing this but hardly any will make it back into positive territory. By definition, shareholders’ equity is simply a company’s assets minus its liabilities. If this number is negative it implies owing money to creditors if the company were to be liquidated. Thus, SmallCapPower has shortlisted four companies with Shareholders’ Equity that’s in the red.

Just Energy Group Inc. (TSX: JE) – $5.83

Natural Gas Utilities

Just Energy Group Inc., is a Canada-based commercial energy retailer company. The Company is engaged in selling electricity and natural gas to residential and commercial customers under long-term fixed-price, price-protected as well as variable-priced contracts in deregulated markets. The Company’s core business is energy marketing.

  • Market Cap: $847,468,139
  • Total Equity: -$538,991,000
  • Net Income (Last 12 Months): -$270,754,000
  • Working Capital (Last Quarter): -$119,678,000

MDC Partners Inc. (TSX: MDZ.A) – $35.20

Advertising & Marketing

MDC Partners Inc. (MDC) is a provider of marketing communications services to customers worldwide. MDC has operating units in the United States, Canada, Europe and the Caribbean. The Company’s subsidiaries provide a range of marketing communications and consulting services, including advertising, interactive and mobile marketing, direct marketing, database and customer relationship management, sales promotion, corporate communications, market research, corporate identity, design and branding, social media and marketing, ecommerce and other related services.

  • Market Cap: $1,738,233,149
  • Total Equity: -$512,626,823
  • Net Income (Last 12 Months): -$31,088,606
  • Working Capital (Last Quarter): -$312,828,592

Sirius XM Canada Holdings Inc. (TSX: XSR) – $5.73

Broadcasting

Sirius XM Canada Holdings Inc. operates as SiriusXM Canada. The Company is an audio entertainment company and broadcasts more than 120 satellite radio channels featuring premier sports, news, talk, entertainment and commercial-free music. SiriusXM Canada offers an array of content from the most recognized news, entertainment and major sports brands including the NHL, NFL, NBA, NASCAR, CNN, CBC, FOX, BBC, Howard Stern, Oprah, Disney and Comedy Central.

  • Market Cap: $594,587,697
  • Total Equity: -$91,233,930
  • Net Income (Last 12 Months): $8,023,900
  • Working Capital (Last Quarter): -$159,482,090

Resverlogix Corp. (TSX: RVX) – $1.60

Biotechnology & Medical Research

Resverlogix Corp. is a Canada-based clinical stage biotechnology company. The Company is engaged in developing compounds involving ApoA-I production. The Company’s RVX-208 is a molecule, developed for the treatment of clinical conditions, including atherosclerosis, Diabetes Mellitus and Alzheimer’s disease. RVX-208 is the first bromodomain and extra terminal domain (BET) inhibitor in clinical trials.

  • Market Cap: $136,390,115
  • Total Equity: -$70,060,828
  • Net Income (Last 12 Months): -$2,109,361
  • Working Capital (Last Quarter): $17,552,124