Merging company

Toronto stocks, slide in the Canadian dollar; Niocorp rises on merger with Nasdaq-listed SPAC

By Adriano Marchese


Toronto stocks were slightly lower at midday on Monday after a choppy week in which Canadian stocks fell 4.7%. Controlling inflation remains the main concern for investors, while the foreign exchange market continues to be very volatile, with the Canadian dollar slipping to 74 cents US. During the session, energy was the main laggard, offset by gains in health technologies, which led the winners. The shares of Niocorp Developments Ltd. surged after announcing that it would accelerate its listing on the Nasdaq Stock Exchange by merging with special-purpose acquisition company GX Acquisition Corp. II.

Canada’s S&P/TSX Composite Index was down 0.16% at 18,450.93 and the blue-chip S&P/TSX 60 Index was down 0.20% at 1,120.37.

The shares of Niocorp Developments Ltd. rose more than 12% to C$1.18, the company said the merger would create a new entity with an enterprise value of US$313.5 million. Niocorp is a company focused on developing its superalloy materials project in Nebraska.


Other market drivers:

Ballard Power Systems Inc. shares rose 2.9% to C$8.98 after announcing it had accepted its latest contract to supply fuel cell engines to power the first hydrogen train in the United States.


Write to Adriano Marchese at [email protected]