Here are the top reads on deals and financial services over the last 24 hours,
FINANCIAL SERVICES NEWS
Ontario launches committee to modernize securities law, review how it polices the industry: Ontario’s Progressive Conservative government has launched a full-scale review of how it polices the securities industry, appointing a high-profile committee with a mission of creating a “more flexible regulatory approach.” The government unveiled its Capital Markets Modernization Taskforce on Thursday, naming five Bay Street insiders with backgrounds in finance, law, institutional trading and corporate governance. (Greg McArthur)
Canaccord revenue plunged in Canadian capital markets division as cannabis financings dry up: Canaccord Genuity Corp.'s Canadian capital markets revenue dropped 42 per cent in the last three months of 2019 compared to the previous year, driven by a sharp decline in cannabis underwriting work. The investment bank’s capital markets team brought in $35.3-million less from Canadian operations in its third quarter ended Dec. 31 than it did in the same quarter a year earlier. That meant Canadian business accounted for only 28 per cent of Canaccord’s total capital markets revenue in the quarter, compared to 40 per cent the year before. (Mark Rendell)
DEALS NEWS: MERGERS, ACQUISITIONS, IPOs and FINANCINGS
Casper Sleep shares jump in New York IPO: Casper Sleep Inc’s shares jumped as much as 30 per cent in their debut on Thursday, partially making up for the haircut the online mattress retailer took on its valuation after its offering was priced at the lower end of its expectations. The stock opened at $14.50, giving the company a valuation of $574.6 million, which is still a far cry from the $1.1 billion Casper had commanded in a private fundraising round last March. The loss-making company had cut its IPO target range to $12-$13 per share from $17-$19 per share. The stock hit a high Thursday of $15.85 before closing up 13 per cent at $13.50 on its first day of trading. (Reuters)
Barrick CEO Bristow eyeing Freeport-McMoran’s Grasberg mine in Indonesia: Barrick Gold Corp. does not want to buy copper mining giant Freeport McMoRan Inc., although it is interested in its rival’s flagship Grasberg mine in Indonesia, chief executive Mark Bristow said on Thursday. The strategy replicates one that Mr. Bristow successfully deployed in 2019: aggressively float interest in an entire company even though the ultimate goal is just one asset. (Reuters)
Elliott Management builds stake in SoftBank, report says: Activist investor Elliott Management Corp has amassed a stake in SoftBank Group and is discussing ways it could boost the value of the Japanese conglomerate, people familiar with the matter told Reuters. Issues that Elliott is discussing with SoftBank include improving the decision-making process at the Vision Fund and the possibility of share buybacks by SoftBank, one of the sources added. (Reuters)
IN CASE YOU MISSED IT
Aurora Cannabis CEO Terry Booth to step down as grower will lay off hundreds of employees: Aurora Cannabis Inc. CEO Terry Booth is stepping down and the company is laying off hundreds of employees, as the cannabis grower struggles to stabilize its balance sheet amid a stark reversal in the fortunes of the Canadian cannabis industry. The layoffs will eliminate 500 full-time equivalent staff, including 25 per cent of corporate positions. The company also announced on Thursday that it expects to take a $740-million to $775-million write down on goodwill, and an impairment charge of between $190-million and $225-million. (Mark Rendell)
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