Aphria Rebuffs Green Growth Brands Buyout Offer for Second Time

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For a second time, cannabis company Aphria Inc. (TSX: APHA) has officially turned down an unsolicited buy offer from Green Growth Brands (CSE: GGB).

Despite that announcement, Green Growth continues to show interest in acquiring its competitor, issuing the following statement after receiving the latest rejection from Aphria’s board of directors:

The combined entity of Aphria and GGB would create an unparalleled North American player with both Canadian and U.S. operations. GGB’s offer is one way to combine these businesses across borders, while creating significant value for shareholders of both companies.

Green Growth’s first hostile takeover attempt arrived shortly after a negative short seller report was released in December through Quintessential Capital Management and Hindenburg Research.

That report caused Aphria’s stock to fall sharply, but since then has fully rebounded, now rising above the price when the report was first released.

Quintessential Capital Management has additionally moved away from negative claims about Aphria following an announcement that CEO Vic Neufeld and co-founder Cole Cacciavillani will step down from their roles at the company, although both will remain on the board of directors.

After that report was released, Irwin Simon was appointed as Aphria’s new independent board chair to look into the company’s recent dealings.

Six weeks into his tenure on the board, Simon appeared for an interview with BNN Bloomberg to discuss the company’s rejection of the GGB offer, stating he believes shareholders agree with the decision.

Simon further stated his position that it’s the wrong time to consider a sale or merger when shortages continue to strangle the market and more value is on the horizon as Health Canada hands out additional licenses.

During that interview, the BNN Bloomberg interview team noted that a promised line-by-line rebuttal to the Hindenburg short seller report hasn’t yet materialized, with Simon stating the company’s internal report will be made available “very shortly.”

An updated rundown of Aphria’s current value versus other cannabis companies in the industry can be found over here.

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The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Ty Arthur
Ty Arthur has spent the last decade of his journalism career covering everything from cutting-edge tech to local news through outlets such as the Houston Chronicle. He has focused on the counterculture aspects of society, from marijuana legalization to underground music through Metalunderground.com and rapidly changing trends in the entertainment industry. He lives in the cold, dark north with his wife and son. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.
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