From Marc Stein of ESPN

Sources tell ESPN's Marc Stein that the Grizzlies and Raptors have a trade in place that would send Rudy Gay and Hamed Haddadi to Toronto in exchange for Ed Davis and Jose Calderon

Stein also reports the Grizzlies plan to flip Calderon to a third team, with the Pistons at the front of the line to acquire the Spaniard. The Gay-to-Toronto trade has been bubbling under the surface for a while, but it finally appears as if it's done. Gay's value should go up since he'll be the primary option in Toronto, with Kyle Lowry also getting a boost since he'll no longer be sharing time. Calderon's value depends on where he lands, but any full-time starting role should make him a must-start. Unfortunately, the biggest loser here appears to be Davis, who will likely enter a reserve role behind Zach Randolph.