UPDATE US Based Pot Producer Plans Hostile Takeover Of Aphria
By AM800 News
A hostile takeover of Aphria Inc. by Green Growth Brands Ltd. valued at $2.8-billion is in the works.
The Ohio-based Green Growth marijuana producer is said to be offering $11 per-share, a 46% premium over Aphria's closing price Monday, according to reports from BNN.
Aphria's share price dipped by 37% after it was revealed on Nov. 23 that the company became the target of short-sellers Quintessential Capital Management and Hindenburg Research, which alleged the firm paid inflated prices for assets held by insiders.
The Leamington grower continues to defend itself, saying the purchase was a transaction negotiated at arm's length and that both companies retained professional financial advisers.
According to the report, the deal could launch further interest in an industry that BMO Capital Markets estimated could reach $120-billion in recreational sales globally by 2025.
In a separate relase Thursday, Aphria also announced that Vic Neufeld will relinquish his role as the company’s chairman while continuing as CEO and a director of the company.
Aphria said Hain Celestial Group Founder Irwin Simon has been appointed to replace Neufeld as the company's new independent chair, effective immediately.
Canada was the first Group of Seven country to legalize the drug for recreational use on Oct. 17 and more US states are moving in that direction though it remains banned at the federal level.
— With files from BNN Bloomberg