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  • Writer's pictureLucas Friesen

Market Summary: January 22, 2024

The TSX closed up today by 17.78 points. In the U.S., the Dow Jones closed up 138.01 points. Bitcoin is down $1,083 (U.S.), at time of writing.

West Fraser Timber Co. Ltd. is closing its Fraser Lake, B.C., sawmill. The company blames an “inability to access economically viable fibre in the region” as the reason. This will impact approximately 175 employees and will reduce the company’s Canadian lumber capacity by approximately 160 million board feet. The company also recently stopped operations in Huttig, Arkansas, and closed its mill in Maxville, Florida.  West Fraser has a market cap of $8.89-billion.

Over the weekend, Algoma Steel Group Inc. had a pipe-supporting structure collapse at its coke-making plant. There were no injuries. The collapse caused a coke oven gas main to fail, which made the coke oven gas flare abnormally and cause air emissions. Also, some liquid waste left the site and entered the adjacent waterway. The company is trying to contain the spill. Coke production is interrupted but all other production areas are in operation. The company doesn’t expect to miss any shipments due to this incident. Algoma has a market cap of $2.17-billion.

Ascot Resources Ltd. has arranged a $50-million (U.S.) financing and a $25-million private placement. Under the $25-million deal, the company plans to issue 56.82 million shares at $0.44 per share. Under the $50-million (U.S.) financing, the company will receive $30-million (U.S.) from Sprott Resource Streaming and Royalty Corp. in exchange for a 3.1% net smelter return royalty on the company’s Premier project. The company will also receive $20-million (U.S.) from Nebari Natural Resources Credit Fund II LP as a cost overrun facility, which will mature in June, 2027, and has an interest rate of 10%. The company has a market cap of $275.24-million and trading of its shares is currently halted (as of 1:20 p.m., January 22, 2024).

Planet 13 Holdings Inc. has agreed to sell its Planet 13 Florida Inc. business, which owns a medical marijuana licence in Florida, to SGW FL Enterprises LLC. This sale is a closing condition of Planet 13’s proposed acquisition of VidaCann LLC. The company will receive $9-million (U.S.) for the Florida business. The company has a market cap of $250.11-million.

Chesswood Group Ltd. is looking to sell itself. The company has begun a “strategic review,” which it plans to finish by March 31, 2024. It has suspended its dividend. The company cited “rapidly rising interest rates and regional bank failures in the United States” as the reason for the company putting itself on the block. The company has a market cap of $145-million.

Nexliving Communities Inc. has agreed to acquire 16 properties from Devcore Group Inc. The properties are in Ontario and Quebec, had revenue of $13.1-million in the 12 months ended September 30, 2023, and have an appraised value of $224-million as of October, 2023. The company will issue 16.5 million shares to Devcore and has agreed to assume approximately $166-million of mortgage principal. This will increase Nexliving’s portfolio by approximately 85%. This will also give Devcore a 49% interest in Nexliving. The company expects to close the deal by the end of Q2 2024. Nexliving has a market cap of $35.89-million.

Northstar Gaming Holdings Inc. expects to report revenue of $19.5-million in 2023. This compares with the company’s revenue in 2022 of $5.7-million. The company is a penny stock, which saw its most volume ever today with over 9 million shares moved and an 85% increase in share price. The company has a market cap of $12.54-million.

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