A roundup of some of the North American equities making moves in both directions today
On the rise
Bombardier Inc. (BBD-B-T) jumped 2.7 per cent on Tuesday after striking a deal to sell its money-losing regional jet program to Japan’s Mitsubishi Heavy Industries, bringing to a close the Montreal plane maker’s commercial ambitions after a three-decade expansion.
Mitsubishi will pay US$550-million in cash and assume liabilities worth about US$200-million for the Canadair Regional Jet (CRJ) program, the companies said in a joint statement Tuesday. Bombardier will assume liabilities worth about US$400-million, including part of the so-called residual value guarantees on the planes.
WestJet Airlines Ltd. (WJA-T) sat 1.4 per cent higher after Federal Transport Minister Marc Garneau gave his approval to Onex Corp.'s $3.5-billion acquisition of Calgary-based airline.
See also: Onex slashed proposed offer for WestJet because of grounding of Boeing 737 Max planes
Transat AT Inc. (TRZ-T) was 3.9 per cent higher after real estate developer Group Mach Inc said on Tuesday it has waived its financing conditions relating to its $527.6- million bid to acquire the tour operator. The developer had previously said the deal is contingent on Quebec providing about C$120 million in acquisition financing.
Shares of Bausch Health Companies Inc. (BHC-T) rose 2.5 per cent with the launch of Duobrii, a topical plaque psoriasis treatment, which is expected to be a key revenue driver. Billed as “the first and only topical lotion that contains a unique combination of halobetasol propionate and tazarotene in one formulation,” it will be available commercially to health care professionals starting this week
Duobrii was approved in the United States in April and is part of the Laval, Que.-based company’s “Significant Seven”, a group of seven key products expected to generate more than US$1-billion in sales over the next five years.
Separately, Bausch announced it has put in a notice to pay down an additional US$100-million of its senior secured term loans this week, using cash generated from operations. After this payment, the company will have eliminated all mandatory amortization for the first quarter of 2020.
Newleaf Brands Inc. (NLB-CN) was up 39.4 per cent after announcing on Monday has entered into a binding letter of intent to acquire Colorado-based TeaLief Brand, LLC.
Under the terms of the LOI, the Vancouver-based company will acquire 100-per-cent of the issued and outstanding shares of TeaLief in exchange for US$3-million in common shares.
Conifex Timber Inc. (CFF-T) was up 1.6 per cent after in announced the sale of its Fort St. James sawmill in B.C. and associated forest license to Hampton Lumber for $39-million “plus the market value of finished lumber and log inventory at closing.”
“We have known for some time that lumber industry rationalization is inevitable because too little sawlog supply is available to maintain the existing manufacturing base in the Interior region of B.C.," Conifex CEO Ken Shields. "The decision we have taken to sell the mill was extremely difficult; however, we are encouraged by Hampton’s plans for the site. We believe this transaction supports the province’s objectives for industry rationalization that is mindful of the impacts on people, communities and First Nations.”
Hampton Lumber operates nine sawmills in Oregon, Washington and B.C.
On the decline
AbbVie Inc. (ABBV-N) slipped 16.4 per cent after the Chicago-based drugmaker said it would buy Botox-maker Allergan Plc (AGN-N) in a cash-and-stock deal for about US$63-billion.
Allergan shareholders will receive 0.8660 AbbVie shares and $120.30 in cash for each share held, for a total consideration of $188.24 per Allergan share, a premium of 45 per cent to the stock’s Monday close
Shares of Allergan surged 25.5 per cent.
Victoria Gold Corp. (VIT-X) dipped 2.5 per cent after announcing Orion Mine Finance Ltd. has increased its ownership interest in the Toronto-based miner.
Victoria said its two largest shareholders, Orion and Osisko Gold Royalties Ltd., have agreed a transaction whereby Orion Co-VI Ltd., a fund controlled by Orion, will purchase from Osisko all 154,517,996 common shares of the company owned by Osisko at a purchase price of 46 cents per common share.
Orion now controls, directly or indirectly, 318,154,360 common shares of the company, representing an approximately 37.1 per cent stake.
Norbord Inc. (OSB-T) was down 0.2 per cent after announcing on Monday evening that its oriented strand board (OSB) mill in High Level, Alta. resumed normal operations over the weekend.
“The MacKenzie County mandatory evacuation order and town of High Level evacuation alert were both lifted this afternoon and MacKenzie County remains under an evacuation alert,” the company stated in a release after markets closed.
Norbord reported on June 18 that its High Level OSB mill had temporarily suspended production due to the wildfires burning nearby in the region.
“All non-essential mill employees were safely evacuated at the time and the mill did not incur any damage,” the company stated.
Norbord said the curtailment is not expected to materially impact the company’s second-quarter results.
The Flowr Corp. (FLWR-X) dropped 19.9 per cent after it announced on Tuesday morning a $125-million public offering of common shares.
The proceeds are set to be used to acquire the remaining 80.2-per-cent interest in Holigen Holdings Limited through a share purchase, which was announced late Monday.
Flowr announced previously its intention to acquire 19.8 per cent of Holigen.
With files from Nicolas Van Praet, Brenda Bouw and wires
David Leeder