Canada has the 10th largest GDP in the world. Its service industry accounts for 70% of its GDP. Canada is a world leader in energy as it holds vast amounts of oil and gas. It’s also the world leader in cannabis. There has been a lot of news lately about Canadian businesses.
Canopy Growth Closes Five Grow Sites
Cannabis company Canopy Growth announced on Dec. 9 that it was closing five of its farms and laying off 220 employees. These moves will save the business between $150 to $200 million.
The cannabis farms that will close are in Ontario’s Fredericton, Bowmanville, St. John’s, and Edmonton. A farm in Saskatchewan will also close. All of the company’s outdoor farms will close, while 17% of its indoor ones will. CEO David Klein said the farms are closing so that Canopy Growth will return to profitability. While it was a hard decision to make, he thinks it was the right one to make.
Dollarama Gives Employees Cash Bonus For Holidays
Dollarama, Inc., is a Canadian dollar store chain. It announced on Dec. 9 that it will be giving all full-time employees a bonus of $300. Part-time workers will get a bonus of $200. They are also giving investors a dividend hike.
Dollarama was criticized for not instituting better health precautions during the COVID-19 pandemic. CEO and President Neil Rossy said he wanted to recognize employees’ efforts and dedication to the company’s customers. Dollarama increased the 4th quarter dividend to 4.7 cents a share, from 4.4 cents a share in the third quarter.
Walmart Canada also gave a one-time COVID-19 bonus. It announced on Dec. 4 that full timers will receive a bonus of $250, while part time employees will receive $150. The bonus was for employees’ ongoing dedication.
Calgary’s Benevity Becomes Latest Tech Unicorn
Benevity of Calgary was the latest tech startup to become a unicorn. Unicorn is the term used to describe a tech startup that attains a valuation of $1 billion. The founders dressed up in unicorn costumes to celebrate the occasion.
HG Capital LLP of the United Kingdom paid $1.1 billion to acquire a majority stake in Benevity. Founder and Chief Executive Officer Bryan de Lottinville and President Kelly Schmitt both dressed as unicorns to announce the deal to the company’s staff. de Lottinville said it was embarrassing, but his company becoming a unicorn was worth it.
Enbridge Increases Quarterly Dividend
Enbridge Inc. is the largest energy firm in Canada. It announced on Dec. 8 that it was increasing its quarterly dividend because of good results in the 4th quarter of 2020. It increased dividends from 81 cents per share for the third quarter to 83.5 shares in the fourth quarter.
President and CEO Al Monaco said he expects income from gas pipelines to rise in early 2021. He also thinks the companies Liquids Mainline System to pay off in increased revenue in 2021. While oil prices have plunged in 2020, demand for oil has rebounded and the value of a barrel of oil has increased from $25 to about $50.
