Stock news for investors: Canopy Growth to acquire MTL Cannabis in $125-million deal

Canopy Growth signs deal to buy MTL Cannabis in agreement valued at $125M

Canopy Growth Corp. has signed a deal to buy Quebec-based MTL Cannabis Corp. in a transaction valued at about $125 million. The deal is expected to help boost Canopy Growth’s position in Canada’s medical cannabis market.

Canopy Growth chief executive Luc Mongeau says MTL’s cultivation expertise, combined with his company’s scale, positions it to improve product quality, expand supply and accelerate its path to profitable growth.

Under the terms of the agreement, MTL shareholders will receive 0.32 of a common share of Canopy Growth and 14.4 cents in cash for each MTL share they hold. Canopy shares closed at $2.40 on the Toronto Stock Exchange on Friday.

The deal requires regulatory and MTL shareholder approval. Closing of the transaction is expected to occur before the end of February.

BlackBerry reports Q3 profit of US$13.7M, up from a loss a year ago

BlackBerry Ltd. reported a third-quarter profit of US$13.7 million, up from a loss of US$10.5 million during the same period a year earlier. The Waterloo-based software company, which keeps its books in U.S. dollars, said Thursday that its earnings per share came in at two cents US, flat compared with the prior year quarter. 

BlackBerry says its revenue reached US$141.8 million for the period ended Nov. 30, down from US$143.6 million during the third quarter last year. 

John Giamatteo, BlackBerry CEO, says in a press release that the company’s QNX segment reached an all-time high for revenue. QNX segment revenue came in at US$68.7 million, rising 10 per cent from US$62.3 million a year earlier. 

Giamatteo says the company’s higher-than-expected overall revenue, coupled with ongoing cost discipline efforts, helped it achieve its strongest profitability in nearly four years during the quarter.

Transat A.T. reports $12.5M Q4 loss compared with $41.2M profit a year ago

Travel company Transat A.T. Inc. reported a loss of $12.5 million in its latest quarter compared with a profit of $41.2 million in the same quarter last year. The company says the loss amounted to 52 cents per diluted share for the quarter ended Oct. 31 compared with a profit of $1.05 per diluted share a year earlier.

Revenue in what was Transat’s fourth quarter totalled $771.6 million, down from $788.8 million a year ago when it benefited from compensation related to Pratt & Whitney GTF engine issues. Excluding the impact of this lower compensation, Transat says revenue increased by 1.5 per cent compared with a year ago.

On an adjusted basis, Transat says it lost 42 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.

Last week, Transat narrowly avoided a costly work stoppage when it reached a new tentative contract with its pilots.

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