A roundup of some of the North American equities making moves in both directions today
On the rise
Canopy Growth Corp. (WEED-T) closed 0.5 per cent higher after chief Executive Officer Bruce Linton told Reuters it has further to go on a string of acquisitions that has seen it suck up at least 12 smaller firms in a year, but it is done buying other producers.
“We will not be buying anyone who currently produces cannabis in Canada for sure,” Mr. Linton said. “We’re more interested in what exists in the pharmaceutical world than the cannabis world.”
Before the bell, the company announced the bell it has received a licence from Health Canada to grow cannabis at an outdoor site in northern Saskatchewan .
The company said the first cannabis cuttings were planted at a 7 million square foot secure cultivation field in the province just hours after receiving the license.
“The new licence expands Canopy Growth’s diversified Canadian footprint and complements its existing indoor and greenhouse facilities to provide a leading balance of facilities to produce low cost input materials for value-add products, while ensuring more sophisticated growing operations for in-demand flower products,” the company said.
Zymeworks Inc. (ZYME-T), a Vancouver-based pharmaceutical company, rose 1.6 per cent after announcing the closing of its previously announced underwritten public offering of 7,013,892 common shares, including the exercise in full of the underwriters’ over-allotment option to purchase 1,458,336 additional shares, and, in lieu of common shares, to a certain investor, pre-funded warrants to purchase up to 4,166,690 common shares.
The common shares were offered at a price to the public of US$18.00 per common share and the pre-funded warrants were offered at a price of US$17.9999 per pre-funded warrant, for aggregate gross proceeds of US$201.3 million.
“The Company intends to use the net proceeds of the Offering to accelerate and expand the global development of ZW25 both as a single agent and in combination with other anti-cancer agents in a variety of HER2-expressing tumors, including gastroesophageal, breast and other underserved cancers; to accelerate and expand the clinical development of ZW49 through its ongoing adaptive Phase 1 clinical trial and follow-on global studies; to advance other novel preclinical programs, including those involving non-HER2-expressing tumors; and for general corporate purposes,” the company said.
Namaste Technologies Inc. (N-X) was up 1.7 per cent after announcing that it has signed a supply and purchase agreement with True Leaf Brands Inc. (MJ-C) to market and distribute a line of hemp-based supplements for pets through its online marketplace.
True Leaf shares were flat.
On the decline
Capstone Mining Corp. (CS-T) lost 1.7 per cent after announcing operations have restarted at its Pinto Valley mine following a curtailment on June 20 due to a fire in the area. The company said advancements by fire crews “have now allowed for operations to safely restart.”
Capstone stated that it does not expect that the curtailment will impact its ability to meet operating or cost guidance at Pinto Valley. “With fire crews still conducting operations in the area to address the ongoing risk of the Woodbury Fire, there may be some impact to day-to-day operations at Pinto Valley. However, as containment of the fire continues to improve, we anticipate being able to return to normal operating levels shortly.”
Parkland Fuel Corp. (PKI-T) was down 0.4 per cent after announcing it plans to commence a private offering of US$500-million aggregate principal amount of senior unsecured notes due 2027.
Parkland intends to use net proceeds to repay in full its US$250-million term loan facility due 2021 and repay certain outstanding amounts borrowed under its existing revolving credit facilities.
Canadian Utilities Ltd. (CU-T) fell 1 per cent after announcing it has entered into definitive agreements, along with its partner Quanta Services Inc., for the sale of 100 per cent of its interest in Alberta PowerLine (APL) for approximately $300-million and the assumption of $1.4-billion of debt to a consortium that includes Greystone Infrastructure Fund (Global Master) L.P. and IST3 Infrastruktur Global.
“As part of these agreements, CU is offering an opportunity for Indigenous communities along the transmission line route to obtain up to a 40 per cent equity interest in APL,” the company said. “This model will provide a long-term stable investment and further enable economic development in the local communities. The final ownership mix will be determined upon close of the purchase option for Indigenous communities.”
U.S. casino operator Eldorado Resorts Inc. (ERI-Q) dropped 10.5 per cent after announcing it has agreed to merge with Caesars Entertainment Corp. (CZR-Q) in a US$17.3-billion cash-and-stock deal, including debt, the companies said on Monday.
Eldorado’s offer of US$12.75 per share represents a premium of about 28 per cent to Caesar’s closing price on Friday and an equity valuation of about US$8.54-billion.
Caesars stock jumped 14.4 per cent.
With files from Brenda Bouw, staff and wires
David Leeder