Market players: stocks in action on Monday – and why
A roundup of some of the North American stocks moving back and forth today
Cronos Group Inc. (CRON-T) posted gains in Monday’s trading after announcing a strategic investment in the PharmaCann Inc., one of the largest vertically integrated cannabis companies in the United States.
Under the agreement, Cronos purchased to acquire an approximate 10.5% stake in a transaction valued at US $ 110.4 million.
âOur growth strategy in the United States is focused on creating long-term shareholder value by bringing together a premier brand and intellectual property portfolio and positioning ourselves to deploy our products in the US market through investments and opportunities with US leaders who share our vision and commitment to the responsibility to deliver disruptive cannabinoid products that improve people’s lives, âsaid Kurt Schmidt, CEO of Cronos. âWe were drawn to PharmaCann as an investment because of their disciplined allocation of capital, strong track record and compelling manufacturing and licensed retail footprint. Additionally, we are excited to partner with PharmaCann because of our shared commitment to improving product quality and consistency through science and better operations and manufacturing.
Unlimited Corp. Recipe (RECP-T) was higher after announcing the signing of an agreement to sell its Milestones restaurant chain to Quebec-based Foodtastic Inc.
Financial terms of the deal were not immediately available.
Recipe chief executive Frank Hennessey said the deal helps the company further streamline its portfolio to focus on big brands.
Company banners include Swiss Chalet, Harvey’s, St-Hubert, The Keg, Montana’s, Kelsey’s, East Side Mario’s and New York Fries.
Foodtastic, a franchisor of several restaurant brands, bought the Second Cup Coffee Co. chain from Aegis Brands Inc. earlier this year.
Some of its other restaurant brands include Au Coq, La Belle et La Boeuf, Monza, Carlos & Pepe’s, Souvlaki Bar and Nickels.
Novavax inc. (NVAX-Q) jumped after reporting late-stage data from its U.S.-based clinical trial showing that its vaccine is over 90% effective against COVID-19 across a variety of variants of the virus.
The study of nearly 30,000 volunteers in the United States and Mexico puts Novavax on track to seek emergency clearance in the United States and elsewhere in the third quarter of 2021, the company said.
Novavax’s protein-based COVID-19 vaccine candidate was over 93% effective against the predominant COVID-19 variants that have raised concern among scientists and public health officials, Novavax said.
Protein vaccines are a conventional approach that uses purified pieces of the virus to stimulate an immune response, and pertussis and shingles vaccines again use this approach.
During testing, the B.1.1.7 variant first discovered in the UK became the most common variant in the US, he said.
Novavax has also detected variants of COVID-19 first found in Brazil, South Africa and India among its trial participants, Novavax director of research and development Dr Gregory Glenn told Reuters. .
iTeos Therapeutics Inc. (ITOS-Q) flew in the wake of the GlaxoSmithKline Plc (GSK-N) agreeing to pay him up to US $ 2 billion to jointly develop and sell a potential cancer treatment.
Boston-based iTeos will receive an upfront payment of US $ 625 million and is eligible for up to US $ 1.45 billion more if the program meets certain development and commercial milestones.
GlaxoSmithKline is under pressure to consolidate its drug pipeline after a report that American activist investor Elliott has acquired a significant stake in the company. The British drugmaker is also preparing to present plans to separate its consumer products business from its pharmaceutical business.
The iTeos agreement is to develop EOS-448, a monoclonal antibody using an anti-TIGIT agent that has shown promise in early studies.
Anti-TIGIT treatments are new, experimental immunotherapies against certain types of cancer. These treatments, including tiragolumab from Roche and vibostolimab from Merck & Co, are designed to deactivate the ability of a tumor to evade the immune system.
On the decline
Hexo Corp. (HEXO-T) fell after reporting a loss of $ 20.7 million in its most recent quarter, down from a loss of $ 19.5 million in the same quarter last year.
The cannabis company said the loss was 17 cents per diluted share for the quarter ended April 30, down from a loss of 26 cents per diluted share a year earlier, when it had fewer shares in circulation.
Net income totaled $ 22.7 million, compared to $ 22.1 million in the same quarter last year.
Hexo made a series of acquisitions this year with the aim of increasing its market share.
Last month, Hexo announced a deal to buy cannabis producer Redecan for $ 925 million in cash and stock as well as another deal to buy 48North Cannabis Corp. for $ 50 million.
In February, he announced that he would spend $ 235 million to buy Zenabis Global Inc. and its brands Namaste, Re-Up, Blazery and Founders Reserve.
Gestion Stelco inc. (STLC-T) was stable after S&P Dow Jones Indices announced it would revert to Canada’s main stock index almost two decades after its predecessor company was delisted.
On Friday, the manager of the S & P / TSX Composite Index said Stelco would be added before markets open on June 21. She will be joined by the payment technology company Nuvei Corp. (NVEI-T), which in recent spring highs had more than doubled from its initial public offering prices eight months earlier.
The other additions are Capstone Mining Corp. (CS-T) and insurer Trisura Group LtÃ©e (TSU-T).
The deletions are AcuityAds Holdings Inc. (AT-T) and Endeavor Mining Corp. (EDV-T).
Based in Ohio Lordstown Motors Corp. (RIDE-Q) collapsed after announcing Monday that CEO Steve Burns and CFO Julio Rodriguez had resigned, days after the electric truck maker warned it might not have enough cash to stay in business next year.
The company added that its independent lead director, Angela Strand, has been appointed executive chairman and will oversee the company’s transition until a permanent CEO is identified.
Lordstown has appointed Becky Roof, who previously served as interim CFO at numerous companies including Eastman Kodak and Hudson’s Bay Co, as Acting CFO of Lordstown with immediate effect.
Since last week’s continuity warning, the company has allayed some concerns by saying it was in talks with multiple parties to raise funds.
The drop was the latest sign of a recent pullback in the once-very high electric vehicle industry, whose ranks have been swelled by the recent boom in Special Purpose Acquisition Companies, or SPACS.
Lordstown and Nikola (NKLA-Q), both of which went public through acquisitions by SPACS – shell companies that use the proceeds of their IPO to acquire private companies – have lost ground this year.
With personnel files and threads