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Inside the Market Market movers: Stocks that saw action on Monday - and why

A roundup of some of the North American equities making moves in both directions today

On the rise

Charlotte’s Web Holdings Inc. (CWEB-T) increased 10.2 per cent on Monday after announcing Kroger Co. (KR-N), the largest grocery retailer in the United Stares, has begun carrying its products in multiple states with a plan to roll out to a total of 1,350 store locations in 22 states.

Bausch Health Companies Inc. (BHC-T) rose 2.6 per cent after it said it would pay down an additional $100-million of its senior secured term loans this week, using cash flow from operations.

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The company said it will have paid all mandatory amortization through the second quarter of 2020.

Diamond Estates Wines & Spirits Inc. (DWS-X) shares were up 28.1 per cent following a premarket announcement that Lassonde Industries Inc. (LAS.A-T) has taken a 19.9-per-cent stake in the company.

Lassonde purchased 36.9 million Diamond Estates common shares at a price of 19 cents each, for gross proceeds of approximately $7-million. Diamond Estates said it intends to use the net proceeds to support “growth strategies, including the expansion of sales volumes in the emerging Ontario grocery channel and the development of a new winery in British Columbia’s Okanagan Valley.”

Shares of Quebec-based Lassonde rose 0.1 per cent.

On the decline

Capital Power Corp. (CPX-T) closed down 0.3 per cent after announcing its second-quarter results and, separately, president and chief executive officer Brian Vassjo’s plan to retire in 2020.

The company also increased its quarterly dividend by 7.3 per cent (to 48 cents).

SNC-Lavalin Group Inc. (SNC-T) dipped 0.9 per cent after it announced it has been awarded a major commissioning services contract with ExxonMobil/SABIC for their Gulf Coast Growth Ventures (GCGV) petrochemical facility in San Patricio County, Texas.

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SNC also revealed it is pulling out of bidding on several major Canadian infrastructure projects as the fallout from the company’s strategic shift begins to be felt throughout the country.

Montreal-based SNC will withdraw its candidacy on lump-sum turnkey projects across Canada for which it has been shortlisted, company spokesman Nicolas Ryan confirmed. He said SNC could re-enter the bidding as a subcontractor under other bidders or if the structure of the projects changes to offer a “better risk profile.”

In reaction to the release of its second-quarter results before the bell that fell short of expectations, shares of Vermilion Energy Inc. (VET-T) dropped 7.3 per cent.

The Calgary-based company announced production of 103,000 barrels of oil equivalent per day, meeting the consensus estimate on the Street (103,800 boe/d). Cash flow of $1.42 fell short of the consensus projection ($1.52).

AltaCorp analyst Patrick O’Rourke said: “Overall, we view the event as neutral, given modest underperformance of street expectations for production and cash flow (most of which was explainable due to unplanned French refinery downtime) resulted in no change to FY19 guidance. Entry into Ukraine fits well with existing CEE assets, and requires minimal capital commitment/risk. The NCIB announcement will satisfy some investors that continue to advocate for the strategy, but in our view debt repayment which allows the company financial flexibility to pursue accretive activities in the future remains the preferred deployment for FCF.”

Shares of Pfizer Inc. (PFE-N) dipped 3.8 per cent after it announced before the bell it will separate its off-patent drugs business and merge it with Mylan NV (MYL-N), the two companies confirmed on Monday, bringing blockbuster treatments Viagra, EpiPen and Lipitor under one umbrella.

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The new company, to be based in the United States and incorporated in Delaware, will be helmed by Pfizer’s unit President Michael Goettler, who will become the chief executive officer.

Mylan shares jumped 12.5 per cent.

Thomson Reuters Corp. (TRI-T) was down 3.1 per cent after an equity analyst at BMO Nesbitt Burns downgraded its stock amid news it is in talks involving London Stock Exchange Group PLC acquiring Refinitiv Holdings Ltd. in a US$27-billion deal.

Shares of Hive Blockchain Technologies Ltd. (HIVE-X) dropped 5.9 per cent after it announced late Friday that it was unable to file its year-end financial statements and accompanying documents due under applicable Canadian securities law requirements, citing delays in the completion of its audit.

“The late filing is the result of delays in obtaining financial reporting from the company’s wholly-owned subsidiaries as the company has explored potential tax optimization structures, and the time required for the company and its auditors to review such financial reporting,” it stated.

Aphria Inc. (APHA-T) was down 3 per cent despite announcing that its subsidiary Marigold Projects Jamaica Limited has received a retail Herb House licence from Jamaica’s Cannabis Licensing Authority to open its first store in Kingston, Jamaica.

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“The approval of Marigold’s first Herb House signals an exciting time for Aphria. We believe that there is tremendous opportunity in Jamaica from a domestic and international perspective and we look forward to bringing Sensi products to the market,” stated Aphria’s interim CEO Irwin Simon.

With files from Nicolas Van Praet, Brenda Bouw and wires

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