Reuters News

Canada’s economic growth is strong and some housing market vulnerabilities have improved, but trade policy is a big risk to the outlook and the government should reform taxes to boost corporate competitiveness, the Organisation for Economic Co-operation and Development said this week. OECD said while GDP growth is projected to remain robust, with exports underpinned by strong global demand, rising rates will sap some consumer strength. The greatest risk in the outlook is trade protectionism, the OECD said, noting that uncertainty around the future of U.S. trade policy may be dampening investment. It also said U.S. corporate tax cuts have hurt Canadian competitiveness.

Private equity-backed Canadian medical marijuana company Tilray Inc rose more than 35 percent in its U.S. trading debut this week after raising about US$153 million ($202 million) in an initial public offering, Reuters reported. Tilray is the third Canadian cannabis company to list on a major U.S. exchange. Its debut values the company at about US$2 billion ($2.6 billion). Seattle-based cannabis private equity firm Privateer Holdings, which has backed Tilray since 2014, will continue to own 82 percent of the business.

A Toronto-based startup has secured US$10 million ($13 million) in funding from venture capitalists to expand its operations in the temporary tattoo business, the company’s chief executive officer said this week. The startup, Inkbox, aims to give customers “the look and feel of a permanent tattoo without the permanence,” CEO and Co-Founder Tyler Handley told Reuters. The company, which was founded in 2015 and operates in Canada and Japan, ships approximately 60,000 tattoos per month to over 150 countries, with 75 percent of its sales going to the United States. The company received its latest equity investment from a group led by U.S. venture capital firm Maveron.

Canada’s Canopy Growth Corp is buying Toyko Smoke cannabis owner Hiku Brands Co Ltd for $269.2 million, the latest deal in a fast-consolidating sector ahead of legal recreational marijuana sales, Reuters reported. West Kelowna, British Columbia-based Hiku owns cannabis lifestyle brands such as Tokyo Smoke, DOJA and Van der Pop. The equity value of the deal is based on 140.95 million outstanding Hiku shares, according to Thomson Reuters. Before becoming part of Hiku in 2017, Tokyo Smoke was backed by Aphria Inc, Green Acre Capital, Globalive Capital and other investors.

German auto supplier Robert Bosch GmbH is teaming with Canadian startup Mojio to get more vehicles connected wirelessly to a range of digital services, from insurance companies to emergency responders, Reuters reported. Bosch and Mojio aim to connect more vehicles to the internet and gather data to support services for consumers and manufacturers. The initial focus is on vehicle communication, diagnostics and crash detection and notification. Bosch is investing in Vancouver's Mojio as part of the startup’s Series B financing, which has so far raised more than $30 million.

China’s Meituan Dianping, an online food delivery-to-ticketing services platform, is bringing its initial public offering to Hong Kong, where it aims to raise over US$4 billion, sources told Reuters. The Beijing-based company, backed by Tencent Holdings Ltd, was valued at around US$30 billion in a fundraising last year. It is aiming for a US$60 billion valuation with the IPO. Meituan’s other backers include venture capital firms Sequoia Capital and DST Global, Singapore's GIC Pte Ltd and Temasek Holdings (Private) Ltd, as well as Canada Pension Plan Investment Board.