☕️ Short attack

Another ASX listed company is in the crosshairs of a short-seller.

July 10, 2023

Good morning.

The all important US jobs numbers came in weaker than expected on Friday night. Will this affect Jerome Powell’s resolve to keep raising interest rates? We will get a better read on that when official US inflation data is released on Wednesday night (Australian time).

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MARKET MOVERS

*Stock data as of the market close. Commodities and crypto data in USD.

Market News: Dual-listed Canadian lithium explorer Patriot Battery Metals was whacked on the ASX and in Toronto on Friday after a short selling research firm made a series of accusations about the company, including a claim that “curiously timed buyout rumours” have inflated its share price. Patriot Battery Metals’ chairman has strongly refuted the claims in the AFR…which also has a story linking the company to corporate activity.

THE QUICK SYNC

  • The US economy added 209,000 jobs in June, fewer than expected (CNBC).

    • The US Fed is still on track to raise interest rates (Bloomberg).

  • The Dutch government collapsed due to an internal dispute over immigration policy (CNN).

  • Twitter v Threads: The Musk-Zuck cage match that’s actually happening (Vanity Fair).

TRADING FLOOR

M&A:

  • Pilbara Minerals hired resource bankers from RBC Capital Markets to consider a tilt at Patriot Battery Metals. (AFR)

  • Cromwell Property and Australian Unity have hammered out an unlisted REIT merger. (AFR | BNA | SMH)

  • Saba Capital has built a 5.02% stake in Pengana International Equities. (AFR)

  • WM Ritchie hires KPMG Corporate Finance’s Luke Lawrentschuk to help it find a capital partner. (AFR)

  • Single Use Ain’t Sexy has sold to Buzz for an undisclosed sum. (StartupDaily)

  • Quadrant Private Equity is targeting a sale process for its Fitness and Lifestyle gyms business in about a year (The Australian)

  • APA and Fortescue Metals are in the final stage of the Alinta Energy race. (The Australian)

     

Capital Markets:

  • Get it Fast is seeking to raise up to $5m to fuel its upcoming phase of expansion. (AFR)

  • HMC Capital has tapped five brokers to raise at least $50m for HMC Capital Partners Fund I. (AFR)

  • Birkenstock is considering a $US6bn ($9bn) sharemarket listing. (SMH)

VC:

  • Sensand, a carbon startup, has raised $6m that came in a single cheque from Robert Costa. (StartupDaily)

  • First Australians Capital (FAC) has raised $15m to back Aboriginal and TSI entrepreneurs. (StartupDaily)

  • Lyre raised £18m ($34m) in its latest funding round led by international investors DSquared and Morgan Creek Consumer Fund. (StartupDaily)

Others:

  • Latest figures from Refinitiv show that mega-mergers and acquisitions over $US10bn ($15bn) are down 51% from a year ago. (The Australian)

  • Morgan Stanley investment banker Craig Smith is taking on the job of Prezzee’s chief financial officer. (The Australian)

THE WATERCOOLER