Toronto Legal Blog

Business and commercial: Governments helping businesses flourish

Small and medium-sized businesses are positive contributors to the country's economy. When it comes to the business and commercial realm in Canada, these companies employ nearly 90 per cent of the nation's workforce in the private sector and heartily drive economic growth. Governments at all levels realize the integral role these businesses play and have helped entrepreneurs to grow their companies and to flourish.

There is now a place for Canadian business owners to be able to access information on what government programs are available to help their companies. The Government of Canada has launched a website for business owners to be able to access government services and programs. Whether an entrepreneur is thinking about a startup or expansion, he or she will be able to find those programs that may be helpful in the process.

Mergers and acquisitions: Mining sector growing with the times

The mining industry in the nation is morphing into a new-ish entity. Part of that change in the industry in Canada includes increased mergers and acquisitions in an effort to curtail escalating operating costs. However, a recent global mining risk report indicates overall optimism when it comes to opportunities for growth in the sector, even though the industry seems to be at a crossroads.

New technology combined with innovative ways of operating are changing mining's landscape, while industry consolidation is ongoing to pare down costs. A leading expert in the field believes that mining higher-ups continue to view mergers and acquisitions along with technology as integral to continual expansion. In fact, more than 65 per cent of these executives believe their companies will grow this year.

Business and commercial news: Gap set to close stores

The closure of several outlets of a popular store seems to be a sign of the times. Recent business and commercial news indicates that Gap will be shutting the doors on a number of its stores in the country, some of which are located in Ontario. The company owns 230 stores across North America, but has not indicated how many closures will take place in Canada. The company said the move is in keeping with guidelines for outlets that are not consistently meeting sales requirements.

The stores earmarked for closure will be phased out over the next two years according to Gap's corporate office. The decision is expected to help modernize the overall operation of the company and to further develop its online presence and growth in remaining outlets. In addition, the company announced plans to split its brand into two companies: Old Navy being one and Gap, Banana Republic, Athleta, Intermix and Hill City being the other.

Mergers and acquisitions: Hostile takeover in gold sector likely

A hostile takeover bid may be soon underway in the mining sector. The latest mergers and acquisitions news in Canada suggests that in what would be the nation's largest scale mining deal ever, Barrick Gold may make a hostile takeover bid for Newmont Mining stocks to the tune of $19 billion. Barrick would funnel some of Newmont's assets to an overseas project.

Barrick has already shelled out more than $6 billion to recently purchase competitor Rangold Resources. The company has said it will continue to seek out additional mergers and acquisitions. Meanwhile, Newmont has been poised to buy out rival Goldcorp for $10 billion. If Barrick is successful in its takeover of Newmont, the Goldcorp deal would go flat, which would put Barrick on the line for a $650 million fee for breaking the deal. 

Business and commercial: Company debt finances pot operations

A major Ontario financial corporation is shelling out big money to invest in the legal cannabis industry. Trichome Financial Corp. out of Toronto is leaping into the business and commercial sector of the cannabis world with $100 million in debt financing for a number of cannabis companies. Up until now, this sort of debt financing has been a rarity in the cannabis sector, but Trichome is already taking receivables as a guarantee from some of the country's leading cannabis companies.

The company wants to take it even further by expanding into the mergers and acquisitions arena when it comes to the cannabis industry. It is hoping on about 15 per cent internal return rates. Trichome's largest pot brands shareholder currently is Origin House. The company has plans of going public with stock offers in the spring. Although Trichome is only lending to Canadian companies currently, it has plans of lending stateside in those areas where cannabis is legal.

Business and commercial: Feds wait to ban Huawei from 5G network

The 5G network in Canada may ban Huawei Technologies Co. That decision, though, may be delayed by Prime Minister Justin Trudeau's efforts to try to safeguard three Canadians detained in China. The business and commercial world is waiting for a security review by the federal government as to what steps will be taken in terms of a possible Huawei freeze out. Some of the country's allies have already taken that step.

The United States, Australia and New Zealand have already blocked or limited Huawei equipment use. Other European countries are discussing a ban as well. The Chinese have already told Ottawa that Canada would face repercussions if it placed a ban on Huawei, and Canada's Prime Minister is in a tough spot trying to juggle ties with the United States and China while also having to be mindful of the Canadians detained by the Chinese government.

Business and commercial: Survey shows worry over economic climate

Canadians are an optimistic lot for the most part, so when they begin to complain about certain situations, there must be some basis in fact. There have been some pessimistic rumblings lately regarding the business and commercial world in Canada. In fact, a survey by the Chartered Professional Accountants of Canada (CPA Canada) showed that 35 per cent of accountants who responded to the survey felt an increased negativity when it came to the national economy.

About 26 per cent stated that they're optimistic about the future of business and the overall economic climate in the country. That, though, is a sharp drop from 48 per cent in the fourth quarter of 2017. And 39 percent of those who answered the survey indicated they are neither optimistic nor pessimistic about business prospects in 2019

Mergers and acquisitions: 2019 holds great dealmaking promise

The business world is looking pretty rosy for the new year and that has dealmakers smiling. Predictions about the mergers and acquisitions realm in Canada are in and there is nothing but optimism for 2019. With a domestic economy that's relatively stable, still low interest rates and a dollar that seems to be rallying, those who took part in a recent survey indicate there is reason for the bright outlook.

Not even a looming federal election in October has dampened the spirits of potential dealmakers. They are expected to see an increase in mergers and acquisitions transactions with foreign companies. This is something that is a boon for diversification. In addition, 40 per cent of those who responded to the survey expect to see more deals happening on Canadian soil as well.

Mergers and acquisitions: A golden future for mining

In certain cases, all that glitters is gold. An industry that was quickly losing its shine has got back some of its sparkle with recent mergers and acquisitions. Recently activity in the gold mining sector in Canada has created some excitement. Newmont Mining Corporation scooped up Goldcorp Inc. creating the world's biggest miners of gold, while Barrick Gold Corp. acquired Randgold Resources Ltd.

The newly-merged Newmont and Goldcorp. said they will sell up to US$1.5 billion in assets in the course of two years. Barrick, on the other hand, says it will steer its focus on assets that generate cash for the company.  Selling assets, though, may not be so easy since the bulk of Barrick's mines are involved in joint ventures and ongoing partnerships.

Business and commercial: Banks lend millions to cannabis growers

Some of Canada's largest banking institutions are cultivating cannabis clients. Some of the biggest business and commercial outlays from these banks are loans to entrepreneurs in Canada invested in the now legal cannabis market. Both the Canadian Imperial Bank of Commerce (CIBC) and the Bank of Montreal (BMO) provided $80 million loan to marijuana cultivator PharmHouse.

That is the largest debt financing loan provided to any privately owned and operated cannabis company. Until now, most banks have shied away from anything to do with the cannabis industry since most of the larger lending institutions hold U.S. assets where cannabis is still federally illegal. The Royal Bank has also got in on some of the action by beginning to advise cannabis companies on reverse takeovers and stock sales. 

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