CANNABIS BOOM GOES BUST AS ECONOMIC REALITY BITES AND POT STOCK PRICES PLUMMET
Cannabis shares are stuffing the new 52-week low list as third quarter operating performance of major producers came in far below expectations. Canopy Growth saw its sales drop -15% last quarter while competitor Aurora Cannabis’ revenue dropped -24%. Both companies lost a combined $2 billion in market capitalization on Thursday as investors threw in the towel.
APOLLO TEES UP THE LARGEST LEVERAGED BUYOUT OF THE YEAR WITH $5.4 BILLION TECH DATA ACQUISITION
Private equity firm Apollo Global Management announced the friendly acquisition of technology distributor Tech Data for $130 per share, representing a deal value of $5.4 billion and a premium of 17%. This deal represents the largest leveraged buyout of 2019.
CANADA’S OPEN TEXT CONTINUES ITS CONSOLIDATION STRATEGY WITH ACQUISITION OF DATA-PROTECTION FIRM CARBONITE
Software consolidator Open Text announced the acquisition of Boston-based data-protection company Carbonite for $23.00 per share in cash, representing a transaction value of $1.4 billion and a premium of 78%. Before the deal was announced, Carbonite shares were down -38% over the past year.
APARTMENT REIT CONTINUUM SCRAPS IPO AND SELLS TO STARLIGHT INSTEAD FOR $1.7 BILLION
Despite heavy investor demand, apartment REIT Continuum decided to scrap its IPO and sell to private investment firm Starlight instead for $1.7 billion. The REIT was planning on going public on the TSX at $15.50 — $16.50 per unit, but ended up being acquired for $20.10, representing a premium of 22% — 30%.
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