Sponsored by Lithium Chile

Did xAI’s fundraising come up short?

Is Elon Musk finally losing his pull?

Earlier this week, the company announced that it was able to raise $6 billion in its Series B fundraising, touting “participation from key investors including Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Company, Prince Alwaleed Bin Talal and Kingdom Holding, amongst others.”

However, as X user @ZeroSumBond points out, the US Securities and Exchange Commission filing suggests a different story. It shows that the company had an offering of a little over $7 billion and was only able to sell a little over $5 billion — a lot less than the target and still a billion short of what was announced.

You can read more on the matter here.

What’s going on?

• OPEC Struggles to Maintain Control Over Oil Prices (theDeepDive)

• Iceland volcano spews lava and smoke for a second day (Reuters)

• Russian Commodities Firms Turn to Stablecoins to Evade Sanctions (theDeepDive)

• Elon Musk Agrees to Testify in SEC Probe of Twitter Acquisition (Bloomberg)

• US to offer Ukraine security pact as tensions rise between allies (FT)

• Iran’s Stockpile of Bomb-Grade Uranium Grows, Biden Presses Allies Not To Confront Iran About Nuclear (theDeepDive)

• FBI Takes Down Huge Global Army of Zombie Computer Devices (Bloomberg)

• Emigration from Canada to the U.S. hits a 10-year high as tens of thousands head south (CBC)

• FTX’s Ryan Salame Sentenced to 7.5 Years in Prison, Ordered to Pay Over $11 Million (theDeepDive)

• US Pending Home Sales Gauge Slumps to a Four-Year Low on Rates (Bloomberg)

• Fitch Revises TD Bank’s Credit Rating Outlook to ‘Negative’ Amid AML Probe (theDeepDive)

What’s the latest?

• Housing Slowdown: Canada Mortgage and Housing Corp. reports that residential mortgage debt reached $2.16 trillion as of February 2024, marking a 3.4% year-over-year increase—the slowest growth in 23 years. The slowdown was attributed to higher mortgage costs and uncertainty around Bank of Canada's interest rate changes, impacting home sales and prices.

• RBC Earnings: Royal Bank of Canada exceeded analysts’ estimates in the fiscal second quarter, earning $2.92 per share on an adjusted basis, driven by strong performance in its capital-markets division and lower-than-expected provisions for loan losses. The bank’s provisions for credit losses totaled $920 million, slightly below the anticipated $929 million.

• Brookfield Takeover: Brookfield is in exclusive talks to acquire a 53.3% stake in French renewable energy developer Neoen SA for €39.85 per share, valuing the company at about €6.1 billion (US$6.6 billion). The offer, representing a 26.9% premium to Neoen’s last closing price. Following this acquisition, Brookfield plans to make an all-cash tender offer for the remaining shares to take the company private, pending regulatory approvals.

• WestJet Strike: WestJet Encore pilots have issued a 72-hour strike notice to management and the government, with a potential strike starting in early June. Despite some progress in negotiations, key issues remain unresolved after the rejection of a tentative agreement. WestJet, which claims the rejected agreement would have made the pilots among the highest paid in Canada, has issued a lockout notice, indicating a work stoppage could begin as early as 6 p.m. mountain time on Saturday if no deal is reached.

• CIBC Earnings: Canadian Imperial Bank of Commerce beat analysts’ estimates with adjusted earnings of $1.75 per share in the fiscal second quarter, surpassing the $1.65 average estimate from Bloomberg's survey. The bank set aside $514 million for potential loan losses, less than the expected $567 million.

Gold and silver bull run

The stock market and stuff

• Brookfield enters deal to buy France’s Neoen for $6.6-billion (FT)

• Zack Morris Defends $ZACK Token’s Plummet Amid Rug Pull Accusations: “I Don’t Really Give A Sh*t” (theDeepDive)

• RBC profit beats analyst estimates as it absorbs HSBC Canada (Globe)

• Klarna Swings Into Quarterly Profit With 29% Revenue Jump (Bloomberg)

In the juniors

• Canopy Growth Sees Revenue Decline To $297.1 Million In 2024 (theDeepDive)

• Forum Energy Options Off Interest In Northwest Athabasca Project To New Issue Global Uranium (theDeepDive)

• WeWork cleared to exit bankruptcy and slash $4 billion in debt, court says (Reuters)

• Trulieve Cannabis Obtains Two Dispensaries In Ohio Following Litigation Settlement (theDeepDive)

• Giant Mining Settles Reclamation Bond In Advance Of Drilling At Majuba Hill (theDeepDive)

FULL DISCLOSURE: Lithium Chile is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Lithium Chile. The author has been compensated to cover Lithium Chile on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.