A roundup of some of the North American equities making moves in both directions today
On the rise
Before the bell, MAG said it has offered 2176423 Ontario Ltd., a corporation controlled by Mr. Sprott, 4,528,302 common shares at a price of $13.25 each for gross proceeds of $60,000,002.
It intends to use the net proceeds to fund exploration and development of the Juanicipio Project and for working capital and general corporate purposes.
U.S. chipmaker Broadcom Inc. (AVGO-Q) was up 1.3 per cent after offering to scrap its exclusivity deals with TV and modem makers to end an EU antitrust investigation and stave off a possible hefty fine.
Broadcom, which makes chips to power smartphones, computers and networking equipment and is a major supplier to Apple , found itself in EU competition enforcers’ crosshairs over its deals with six companies to buy chips exclusively or almost exclusively from it.
That triggered an investigation in June last year and an order to stop such deals until the end of the probe on whether such practices were aimed at squeezing out rivals.
EU regulators have warned that the use of an interim order, the first in almost two decades, could happen more frequently against tech giants due to fast-moving markets.
Broadcom has now pledged not to offer incentives to TV and modem makers to encourage them to acquire more than 50 per cent of their chips and modems from the company for their worldwide or European production.
Tesla Inc. (TSLA-Q) jumped 9.8 per cent and gave the Nasdaq its biggest boost after Bloomberg reported it has called off having at least some employees return to its Fremont, California plant this week and plans to bring them back the day after a local shelter-in-place order is scheduled to lift,
A paint department supervisor told employees in an email on Sunday that there was no need to come back to the factory this week, according to the report.
Tesla did not respond to Reuters’ request for comment.
San Francisco Bay Area’s stay-at-home order is scheduled to expire on May 3.
However, San Francisco Mayor London Breed said on Friday that it was likely the Bay Area’s stay-at-home order will get extended beyond the current expiration date of May 3, according to the Los Angeles Times.
General Motors Co. (GM-N) was up 2.4 per cent after it said it has suspended its quarterly cash dividend on its common stock and its share buybacks to save cash in the face of the coronavirus crisis that has severely hurt global automobile sales.
“We continue to enhance our liquidity to help navigate the uncertainties in the global market created by this pandemic,” said GM Chief Financial Officer Dhivya Suryadevara.
GM, which has been forced to shut some production in North America along with other car makers, had earlier said it has postponed work on at least half a dozen future models to conserve cash during the pandemic.
GM as well as rivals Ford Motor Co and Toyota Motor Corp have taken steps to reopen North American vehicle manufacturing operations in early May, but the move has met with opposition from the companies’ labor union that say it is “too soon and too risky” to reopen auto plants
On the decline
Under the terms of the transaction, each holder of Guyana Goldfields shares will have the option to receive 60 cents in cash or 0.1195 of a Silvercorp common share for each of their shares, subject to a maximum cash consideration of $33.2-million. If all Guyana Goldfields shareholders choose to receive cash, consideration for each share will consist of 20 cents in cash and 0.0796 of a Silvercorp common share, the company stated.
Also, Silvercorp will lend Guyana Goldfields up to US$15-million with proceeds going towards operations at the Aurora underground project, as well as for certain working capital and general corporate purposes.
“This transaction will create a new globally diversified precious metals producer with the addition of Aurora to our growing asset portfolio. We believe this is a rare opportunity to leverage our underground mining expertise and strong balance sheet to unlock value for all shareholders through the development of the Aurora Underground Project as well as aggressive exploration programs in a proven gold district,” said Silvercorp chair and CEO Rui Feng.
Shares of Guyana were up 38.1 per cent.
DavidsTea Inc. (DTEA-Q) slid 2.7 per cent after admitting Monday it faces the possibility of being delisted from the Nasdaq due to its low stock price as it provided an operational update amid the COVID-19 pandemic.
The Montreal-based company said in a statement that the Nasdaq Stock Market LLC notified the company on April 21 that it “is not in compliance with the minimum bid price requirement” under the index’s listing rules.
Shares traded on the exchange must meet a US$1 minimum bid price. If a company trades below that threshold for 30 straight business days, Nasdaq will send them a deficiency notice, according to the Nasdaq Listing Center. The company is given 180 days to regain compliance.
The company’s shares fell below the US$1 mark in early March. On March 8, they closed at 85 US cents, down from $1.08 Friday, March 6.
The Nasdaq notice “has no immediate effect” on the company’s listing, DavidsTea said, adding it has until Dec. 28, 2020 “to regain compliance.”
Boeing Co. (BA-N) declined 0.3 per cent after chief executive Dave Calhoun told shareholders on Monday it will need to borrow more money over the next six months and does not expect to pay dividends again for years, as the U.S. planemaker wrestles with industry fallout from the coronavirus and the grounding of its 737 MAX jet.
“We know we’re going to have to borrow more money in the next six months in order to get through this really difficult moment, to provide the right liquidity to the supply chain that represents our industry,” Mr. Calhoun said during the company’s virtual annual general meeting.
On the weekend, Boeing’s US$4.2-billion deal with Brazilian planemaker Embraer SA fell apart.
The collapse came hours after a midnight deadline on Friday expired with no agreement on how to implement a deal first aired in 2018.
Boeing accused Embraer of failing to meet conditions for closing the transaction, but Embraer said Boeing had torpedoed it because of wider financial problems it faces as a result of the coronavirus crisis and the grounding of its 737 MAX.
“Embraer believes strongly that Boeing has wrongfully terminated the (agreement,)” the Brazilian company said.
The deal between Embraer and Boeing was announced almost two years ago and the companies were in the final stages of closing it before it fell apart. Boeing was to take 80 per cent of Embraer’s commercial aviation division, which makes planes of up to 150 seats.
On Monday, Embraer’s CEO said it has already begun an arbitration process against Boeing.
Francisco Gomes Neto declined to provide more details on the process and if it will be accompanied by a lawsuit in either a Brazilian or a U.S. court..
Apple Inc. (AAPL-Q) lost 0.02 per cent after the Wall Street Journal reported it is delaying the production ramp-up of its flagship iPhones coming later this year by about a month as the coronavirus pandemic has weakened global consumer demand and disrupted manufacturing across Asia.
Apple is forging ahead with plans to release four new iPhone models later this year, the report added citing sources.
The new models will be enabled with 5G connectivity that promises low response times and faster internet.
The Nikkei had reported in late March that Apple was preparing to possibly delay the launch of its first 5G iPhones.
The WSJ report on Monday added that Apple was slashing the number of handsets that it plans to make in the second half of this year by as much as 20 per cent.
Regeneron Pharmaceuticals Inc. (REGN-Q) slipped 3.5 per cent after the U.S. drugmaker and France’s Sanofi SA said they would continue a late-stage trial of their arthritis drug, Kevzara, in only COVID-19 patients who are critical, and discontinued the trial for those in the “severe” group.
The companies said their decision was based on early data.
Patients were classified as “severe” if they required oxygen supplementation without mechanical or high-flow oxygenation and “critical” if they required mechanical ventilation or high-flow oxygenation or required treatment in an intensive care unit.
With files from staff and wires