Cann Group Ltd (ASX:CAN) and Mesoblast limited (ASX:MSB) shares are two of four surging higher on Monday. Here’s why…
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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is defying Friday’s weakness on Wall Street and is pushing higher. At the time of writing, the benchmark index is up 0.5% to 6,573.3 points.
Four shares that are climbing more than most today are listed below. Here’s why they are surging higher:
Ampol Ltd (ASX: ALD)
The Ampol share price is jumping higher after announcing an off-market share buyback worth $300 million. The fuel retailer announced the surprise buyback after completing the sale of its convenience retail properties. Originally, the company, which was formerly known as Caltex, was going to use the funds to reduce its debt leverage. But due to improving trading conditions, management has opted to use the proceeds to buy back shares as well.
Cann Group Ltd (ASX: CAN)
The Cann share price is up 3% to 35 cents after announcing a new bank facility. According to the release, the cannabis company has received credit approval from National Australia Bank Ltd (ASX: NAB) for a $50 million secured debt facility. The company expects to complete the execution of documentation with the banking giant within the next month.
Fortescue Metals Group Limited (ASX: FMG)
The Fortescue share price has stormed 5% higher to $17.79. This is despite there being no news out of the iron ore producer. However, a number of resources shares are on the rise today and are playing a key role in driving the ASX 200 higher. The S&P/ASX 200 Resources index is up 2.1% at the time of writing.
Mesoblast limited (ASX: MSB)
The Mesoblast share price has continued its positive run and is up a further 6.5% to $3.88. Investors have been buying the biotech company’s shares after it announced a major deal with pharma giant Novartis at the end of last week. The two companies have signed an exclusive worldwide license and collaboration agreement for the development, manufacture, and commercialisation of Mesoblast’s mesenchymal stromal cell (MSC) product remestemcel-L. Novartis will pay US$50 million upfront and could then pay over US$1.25 billion in milestone payments to Mesoblast.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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