A roundup of some of the North American equities making moves in both directions today
On the rise
Shares of Mogo Inc. (MOGO-T) was higher on the premarket launch of a bitcoin cashback mortgage.
According to the Toronto-based company, Mogo members who take out a new mortgage or refinance can earn up to $3,100 cashback deposited in their Bitcoin and Rewards account.
Score Media and Gaming Inc. (SCR-T) was up with the premarket announcement it has secured market access to offer mobile sports betting in Illinois through an agreement with Harrah’s Joliet Hotel & Casino, a Caesars Entertainment, Inc. (CZR-Q) resort.
The Toronto company expects to launch its mobile sportsbook, theScore Bet, in the state in the second half of 2021.
See also: TheScore plans public listing on Nasdaq to expand sports betting platform
Auxly Cannabis Group Inc. (XLY-X) was higher after announcing that it has received conditional approval from the Toronto Stock Exchange to graduate from the TSX Venture Exchange and list its common shares on the TSX.
“This conditional acceptance to graduate to Canada’s largest exchange is a significant milestone for Auxly,” said CEO Hugo Alves. “After an incredibly successful Cannabis 2.0 launch last year and our strategic expansion into Cannabis 1.0 in 2021, we believe that uplisting to the TSX is the next logical step in our corporate growth. By raising our profile in the investment community and enhancing the liquidity of our stock, we will be able to broaden our shareholder base and continue to build long-term shareholder value for our investors.”
Loop Energy Inc. (LPEN-T) was higher with the shipment of its first unit of eFlow fuel cell modules to ECUBES in Slovenia.
It’s Loop’s first commercial shipment to the European Union as part of an agreement between the companies to supply more than 50 units of hydrogen fuel cell modules over the next two years.
The Burnaby, B.C.-based company went public on the Toronto Stock Exchange in late February.
Boeing Co. (BA-N) rose after U.S. budget carrier Southwest Airlines Co. (LUV-N) said on Monday it had reached a deal with the planemaker for 100 orders for a variant of the 737 MAX aircraft, with the first 30 jets scheduled for delivery in 2022.
The development comes days after Reuters reported that Boeing was close to a multibillion-dollar deal to sell dozens of its 737 MAX 7 jets to Southwest, in potentially the jet maker’s largest 737 MAX order since the aircraft’s safety ban was lifted in 2020 end.
Each 737 MAX 7 carries a list price of roughly US$100-million, though such jets usually sell for less than half their official value with typical market discounts, according to aircraft industry sources.
Southwest said it had converted 70 orders for the 737 MAX 8 aircraft to 737 MAX 7 orders, with an additional 155 optional orders for 737 MAX 7 or 737 MAX 8 planes for 2022 through 2029.
The changes in Southwest’s order book result in a total of 349 orders and 270 options for the 737 MAX jet for 2021 through 2031, compared with a previous 249 orders and 115 options for the 737 MAX aircraft for 2021 through 2026.
Houghton Mifflin Harcourt (HMHC-Q) jumped with a deal to sell HMH Books & Media, which includes titles by J.R.R. Tolkien and the Curious George children’s series, to News Corp.’s HarperCollins division for US$349-million.
The deal comes as the publishing industry reshapes itself through consolidation and follows German media giant Bertelsmann’s purchase of rival Simon & Schuster in November.
Houghton Mifflin said the sale will allow it to focus on its K-12 education business, with schools re-opening as the coronavirus pandemic appears to be winding down. Houghton Mifflin, which says it serves 90 per cent of U.S. schools and calls itself the largest K-12 education technology company in the U.S., will also put more emphasis on digital sales.
“There is incredible demand for our expertise as schools across the country plan for post-pandemic learning and recovery,” said Houghton Mifflin CEO Jack Lynch. “This is an inflection moment for K—12 education in our country and for HMH as a trusted partner to schools and teachers in advancing learning for every student.”
Houghton Mifflin, which has struggled financially for years, says it will use some of the sale’s proceeds to pay down debt. The deal is expected to close in the second quarter of 2021.
Visa Inc. (V-N) was narrowly higher after it said on Monday it will allow the use of the cryptocurrency USD Coin to settle transactions on its payment network, the latest sign of growing acceptance of digital currencies by the mainstream financial industry.
The company told Reuters it had launched the pilot program with payment and crypto platform Crypto.com and plans to offer the option to more partners later this year.
Bitcoin, the most popular crypto coin, jumped to a one-week high on the news, rising as much as 4.5 per cent to US$58,300 and heading back toward a record-high above $61,000 hit earlier this month.
Visa subsequently confirmed the news in a statement.
The USD Coin (USDC) is a stablecoin cryptocurrency whose value is pegged directly to the U.S. dollar.
On the decline
48North Cannabis Corp. (NRTH-X) plummeted after saying it will lay off about 20 per cent of its staff as it ends outdoor cultivation at an Ontario facility.
The cannabis company did not specify how many workers will be impacted as it immediately ceases operations at its Good Farm outdoor cultivation facility in Brant County, west of Hamilton.
The company described the closure as an important step toward profitability and when coupled with decreasing its cash use, said it will result in annualized savings of at least $5 million.
The Good Farm cut leaves 48North dependent on strategic partnerships with licensed producers and on DelShen, an indoor facility it keeps in Kirkland Lake, Ont.
Whitecap Resources Inc. (WCP-T) reversed course and fell in the wake of raising its first-quarter and full-year 2021 production guidance in an operations update released before the bell.
In a research note, ATB Capital Markets analyst Patrick O’Rourke said: " Overall, we view the event as positive. The Company continues to grind key guidance metrics, including increased production and cash flow, with FY21 production guide improved to 102.0-103.0 mboe/d (from 100.0 mboe/d prior), adding an incremental $16-24-million of CF/FCF (no change to capex guidance). The improved guidance is primarily being attributed to the legacy production base (notably the Weyburn and Viking units), leaving the potential for further incremental improvements to the production guidance as the Company continues to integrate recently acquired production, in our view.”
ViacomCBS Inc. (VIAC-Q) and Discovery Communications (DISCA-Q) continued to fall in the wake of tumbling around 27 per cent each on Friday after a number of large block trades linked to investment fund Archegos Capital raised worries about more volatile trading in the coming days.
On Monday, Nomura and Credit Suisse said they are facing billions of dollars in losses after Archegos defaulted on margin calls, putting investors on edge about who else might have been caught out.
Nomura, Japan’s largest investment bank, warned on Monday it faced a possible US$2-billion loss due to transactions with a U.S. client while Credit Suisse said a default on margin calls by a U.S.-based fund could be “highly significant and material” to its first-quarter results.
The Swiss bank said that a fund had “defaulted on margin calls” to it and other banks, meaning they were now in the process of exiting these positions.
With files from staff and wires