Aphria is urging its shareholders to proceed with caution after Green Growth Brands formally launched its unsolicited takeover bid for the beleaguered pot producer at the same exchange ratio as what GGB telegraphed in December. I’m still scraping through the circular, but have landed on two things that leap out:
-GGB now says it will not adjust the exchange ratio and so “there can be no assurance” of what the value of the bid will be. Recall that when GGB announced its intent to launch an offer, there were some questions about how the company derived an $11/share valuation.
-This is listed as one of the conditions that could short-circuit the bid: “the Offeror not becoming aware of any information corroborating in any material respect the statements contained in the December 3, 2018 report of Hindenburg Research and Quintessential Capital Management entitled “Aphria: A Shell Game with a Cannabis Business on the Side”
TSX STREAK SNAPPED
The S&P/TSX Composite Index’s winning streak was halted at 12 days yesterday as Canadian stocks fell alongside U.S. markets amid a broad range of concerns about global growth. Futures are pointing to modest gains at the start of trading in New York this morning.
5G CONFERENCE
There probably won’t be any escaping the elephant in the room today at the National Arts Centre in Ottawa, where the 5G Canada 2019 conference is being held. The wireless community will be well represented at the event, though there’s no indication on the official agenda that Huawei is sending a representative. It’s a good day for us to take another look at the high stakes facing the federal government in its pending decision about allowing China’s telecom giant to play a role in Canada’s 5G infrastructure.
ALBERTA BACKSTOP
Alberta Premier Rachel Notley declared yesterday she’s “taking the bull by the horns and fighting to get full value for our oil” while touting the plan for a new $2-billion partial upgrading facility that’s being made possible by a $440-million loan guarantee from the province. There’s more runway to explore the message this sends to the private sector.
OTHER NOTABLE STORIES
-Restaurant Brands International just announced CEO Daniel Schwartz is being promoted to executive chair while Burger King President Jose Cil takes over as CEO of Tim Hortons’ parent company. RBI is also raising its dividend and indicated Tims’ same-store sales rose 2.2% in Canada during the fourth quarter.
-The partial U.S. government shutdown is now into a 33rd day. Senate leaders are giving the go-ahead for votes tomorrow on dueling proposals to end the impasse.
-Shares of IBM are up more than five per cent in pre-market trading even after the company reported another year-over-year drop in quarterly revenue, albeit while notching full-year top line growth.
NOTABLE RELEASES/EVENTS
-Notable earnings: Canadian Pacific Railway, AGF Management, Ford Motor Co., United Technologies, Procter & Gamble, Texas Instruments
-Notable data: Canadian retail sales
-9:00 a.m. ET: Canadian Wireless Telecommunications Association hosts 5G 2019 conference in Ottawa (details here)
-9:00 a.m. ET: Kinder Morgan holds investor day meeting in Houston
-10:15 a.m. ET: Environment and Climate Change Minister Catherine McKenna makes green infrastructure announcement in Montreal (plus media avail)
-10:15 a.m. ET: Prime Minister Justin Trudeau makes announcement and holds avail in La Loche, SK, alongside Public Safety Minister Ralph Goodale
-1:00 p.m. ET: Catherine McKenna delivers keynote at event hosted by Montreal Council on Foreign Relations
-CIBC's annual Whistler investor conference begins
-World Economic Forum annual meeting in Davos; Canadian government sending ministers of foreign affairs, finance, economic development, and international trade diversification (runs to Jan 25)
Every morning BNN Bloomberg's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN Bloomberg's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnnbloomberg.ca/subscribe.
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