Streetwise newsletter: the best reviews of the week: Tesla, Constellation-Canopy deal and more



Here you can read about offers and financial services during the last week. A good weekend,

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Take private saga Tesla : Elon Musk has many big, ambitious plans, from colonizing Mars to sticking battery packs that are attached to solar panels in every house. The problem is that each of these dreamy projects costs a fortune and that fortunes are not easy to find – especially if you lose a fortune every minute of the day. Take Tesla, his electric car company. The cash burn is terrible. Opinion (Eric Reguly)

Profit Sharing : f Chairman Donald Trump has asked the highest supervisor for securities in the United States to abandon quarterly financial reports, with a debate on the merits of & # 39; quarterly capitalism & # 39; is lit again and forces Canadian regulators to consider reviewing their own reporting requirements. Story (Tim Kiladze and Victoria Gibson, for subscribers)

Discount Mediators : Wealthsimple Inc., Canada's largest robo advisor, infiltrates the discount brokerage business with the launch of a new trading platform that will enable investors to buy, sell and track stocks and exchange-traded funds with zero trading commissions. The online portfolio manager – who manages more than $ 2.5 billion in assets and is primarily owned by investment giant Power Financial Corp. – calls the platform Wealthsimple Trade. It is a mobile app that gives users access to unlimited trading with zero commissions of more than 8,000 listed shares and ETFs that are listed on the major Canadian and US exchanges. Story (Clare O & # 39; Hara)

Canopy rating : calculating the value of the largest Canadian deal for cannabis seemed simple enough. In order to increase its shareholding in Canopy Growth Corp, American alcohol group Constellation Brands Inc. is buying. 104.5 million new shares of the Canadian pot producer for $ 48.60 each. Multiply these figures together and the investment seems to be worth $ 5 billion. But mathematics is not that simple, because of a sweetener that Constellation receives as part of the deal. Story (Tim Kiladze, for subscribers)

Trinidad valuation : as shareholder of Ensign Energy Services Inc. (ESI-T), I am in charge of the recent lowball offer of $ 1.68 in cash from management for all shares of Trinidad Drilling Ltd. (TDG-T). But as a shareholder of Trinidad Drilling I believe that the offer drastically undervalues ​​the company and I will not offer my shares close to the current offer price anywhere. In fact, I wrote less than four months ago in the report on cases that Trinidad Drilling, which at the time was trading for $ 1.75, could be bought for less than the collateral value of the drilling platforms, estimated at about $ 3.00 per share. Opinion (Robert Tattersall)

Research : Alberta supervisors investigate the American short-seller Marc Cohodes regarding his interest in Badger Daylighting Inc. in the latest escalation of hostilities between the US investor and the oil services company. A lawyer from the Alberta Securities Commission (ASC) announced on Wednesday during a hearing that there had been a broader investigation, on the same day that a commission committee closed an application for a cease trade order against the Californian short-seller supported by Badger. Story (Jeff Lewis, for subscribers)

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Discipline : The former chief financial officer of bankrupted investment firm First Leaside Securities Inc. has been banned from a CFO for three years and a $ 50,000 fine following an evaluation by the Ontario Securities Commission. Story (Clare O & # 39; Hara For subscribers)

Cannabis Deal : Constellation Brands Inc., a seller of Corona beer and Kim Crawford wines, pumping $ 5 billion in Canopy Growth Corp. to speed up the international cannabis business of Canada expansion plans. The deal cements the link between the global alcoholic beverage giant, with all its marketing and deal-making expertise, and the marijuana sector, where recreational use gains legitimacy in Canada and elsewhere. Story (Jeffrey Jones, for subscribers)

Wall Street loves cannabis : an investment banker who routinely talks to beverage and pharmaceutical executives, likes to tell a quick story about the current state of the world: every meeting with CEO & # 39; s starts talking about US President Donald Trump for five minutes. Now every session starts with a conversation about cannabis. Story (Andrew Willis, for subscribers)

Media : Rogers Communications Inc. wants the magazine business. The Toronto-based telecommunications and media company is requesting a package of assets with eight of its digital and print magazine titles: Maclean & # 39; s, Canadian Business, MoneySense, Today & # 39; s Parent, Hello! The French and English editions of Canada, Flare and Chatelaine – as well as the adapted content group. Story (Susan Krashinsky Robertson, for subscribers)

Cohodes and Badger-sage : Short-seller Marc Cohodes is free to share in Badger Daylighting Inc. to trade after Alberta supervisors have rejected an application on Wednesday for a cease-sell order against the prominent American investor. Story (Jeff Lewis, for subscribers)

Real Estate Fund : the value of the LaSalle Canada Property Fund has now reached more than $ 1 billion, including debt. The Chicago-based real estate investor has US $ 60 billion in assets under management. It launched the Canadian fund in December. Story (Rachelle Younglai, for subscribers)

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Banks : The rating agency S & P Global Ratings has increased the creditworthiness of the Bank of Montreal, with reference to good credit supply and lower credit losses compared to similar funds. On Tuesday, the credit rating agency presented the stand-alone creditworthiness of BMO, a measure that looks at the bank's fundamentals without taking into account the likelihood of government support, to A from A-. Story (Alexandra Posadzki, for subscribers)

New SPAC : already a leading consultant for cannabis companies, Canaccord Genuity Corp. is now a potential buyer of a marijuana business after the investment bank launched a takeover vehicle looking for an acquisition worth up to $ 250 million. Canaccord filed the paperwork on Wednesday for an initial public offer from a cannabis-focused special acquisition organization or SPAC. Story (Andrew Willis, for subscribers)

Stresstest : The largest banks in Canada are better prepared to withstand a domestic housing crisis than two years ago, although the total losses of acidified mortgages would be greater, according to a new report. Moody's Investors Service has updated its stress test for the country's seven largest banks, which assumes a serious – although still unlikely – shock on the housing market. Story (James Bradshaw, for subscribers)

Financial products : Canadian investors who want to increase their exposure to Asian stocks can now do so through two new exchange-traded funds aimed at Asia that were launched earlier this month by WisdomTree Asset Management Canada Inc. Story (Clare O & # 39; Hara)

Private equity : shares of Callidus Capital Corp. tumbled 15 percent to a new low after the credit company reported a seventh consecutive quarterly loss, and the chief executive officer Newton Glassman announced that he was taking a medical leave. Callidus, a distributer for distressed companies publicly announcing Mr. Glassman for $ 14 per share in 2014, lost $ 40.8 million in the most recent quarter against a $ 7 million loss in the first quarter. Story (Andrew Willis and Jeffrey Jones, for subscribers)

Governance : Hydro One Ltd. has unveiled its new board of directors after the previous board of the aid program has resigned en masse and the chief executive officer withdrew under pressure from Ontario's newly elected prime minister. As with the previous board, many of the 10 new directors have deep Bay Street connections – and a number of them have held senior positions at investment banks. Story (Tim Kiladze, for subscribers)

Mortgages : Home Capital Group Inc. feels the sting because rising interest rates make it more expensive to increase term deposits, putting pressure on a major source of funding as an alternative mortgage lender continues to recover from a liquidity crisis last year. Story (James Bradshaw, for subscribers)

Energy : Ensign Energy Services Inc. has launched an enemy takeover bid of $ 470 million for Trinidad Drilling Ltd. two weeks after Trinidad had completed a formal search for a buyer without a deal. Ensign, whose chairman and largest shareholder is the London-based billionaire Murray Edwards, is offering $ 1.68 a cash share for Trinidad, a rival for oil and gas drilling. That is a premium of 20 percent compared to the average price of Trinidad in the first ten trading days of August. Story (Jeffrey Jones, for subscribers)

Regulation : The bankruptcy of Sequoia Resources Corp. is an ugly mess, not least for the Alberta energy watchdog. Of the many discussions in the case – where an insufficiently funded gas producer left a $ 225 million clean-up account – the Alberta Energy Regulator (AER) has much to offer. And a difficult task to change his way of working. What has become clear since Sequoia failed in March is that the legislation that AER operates on has a yawning loophole, as a result of which financially weak companies have circumvented the regular control of the regulator and have taken over the ownership of assets with high environmental obligations. Most of Sequoia's assets were acquired in one transaction that used that gap. Opinion (Jeffrey Jones, for subscribers)

Privacy of the banking system : Canadian government and bank officials rummage extensively and track our financial transactions with millions. It is part of the fight against money laundering and the financing of terrorist groups, but the extent and quality of the process raises questions about watchdogs and financial institutions that may go too far. "It is a kind of widespread development in police work, which we do not normally consider to be policing," said Dr. Vanessa Iafolla from the University of Waterloo, co-author of a research documenting the efforts. Story (Michael Babad, for subscribers)

Approval of utility takeover : US regulators, concerned about the forced departure of chief executive Mayo Schmidt of Hydro One Ltd. and the board of the company in July, doubt now whether the tool will try to make up for a possible decline in Ontario's revenues through rates for Avista Corp. customers. increase. The public utility commission in Washington State, where Avista serves only less than 400,000 gas and electrical customers, evaluates the protection that Hydro One agreed earlier this year to get the acquisition of Avista approved. Story (David Milstead, for subscribers)

MORE FINANCIAL SERVICES ND DEALS NEWS FROM FRIDAY

Regulation : US President Donald Trump asked securities regulators to check if quarterly reporting requirements had to be replaced by semi-annual Notifications at the insistence of executives, including PepsiCo Chief Executive Indra Nooyi, revive a debate about how often companies should give financial updates to investors. Story

Government approval : the federal government says it is the proposed $ 5 billion investment by Constellation Brand Inc. in Canopy Growth Corp. Story will investigate

. Tesla private saga : Elon Musk was at home in Los Angeles, struggling to keep his composure. "The last year was the most difficult and painful year in my career," he said. "It was unbearable." The year has only intensified for Musk, chairman and chief executive of the electric car manufacturer Tesla, because last week he announced abruptly on Twitter that he hoped to change the listed company into a private company. The episode began on the markets and within Tesla itself, and he acknowledged on Thursday that he was fraying. Story

It is different across the border : Louisiana uses the bond market to stand up for the Second Amendment. The state bond committee voted 7 to 6 Thursday to Bank of America Corp. and Citigroup Inc. to prohibit work on the forthcoming debt service due to the restrictive policy & # 39; of the banks, the state treasury said in a statement. Story

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