Market Overview

The Latest On Green Growth's Proposed Takeover Of Aphria

The Latest On Green Growth's Proposed Takeover Of Aphria

Shares of Canada-based Aphria Inc (NYSE: APHA) moved higher Thursday after Green Growth Brands Inc (OTC: GGBXF) CEO Peter Horvath told Bloomberg his company is open to negotiating its unsolicited takeover offer.

As part of the merger offer, U.S.-based Green Growth offered 1.5714 shares for each Aphria share owned and will oversee a third-party equity financing of $300 million at $7 a share to finance the cross border transaction, Bloomberg reported. This would imply a 21-percent spread between Green Growth's proposed deal with Aphria's share price.

Green Growth already has a $150 million commitment that covers half of the financing needs and the CEO says his investment bankers could take advantage of "a lot of interest in our business" to raise the remaining capital.

A Little Background

Green Growth Brands presented an offer Jan. 22 to acquire Aphria in an all-stock transaction which would value the medical marijuana and cannabis oil company at C$2.8 billion. On Thursday, Horvath told Bloomberg there is a "chance that offer might change" although the two companies have yet to meet face to face.

A possible modification to the takeover offer could see Green Growth helping Aphria raise capital, Horvath said.

Horvath also told Bloomberg the company's $12.4 million acquisition of a medical medical marijuana cultivator and retailer in Arizona called Desert Rose is important to help boost Green Growth's stock higher. Horvath expects recreational cannabis will become legal in Arizona within 18 months, which would open up the market to better compete in the skin-care space.

Aphria traded around $8.66 per share at time of publication, up 12.8 percent.

Related Links:

Aphria CEO, Co-Founder To Stand Down; Q2 Revenue Surges, But Trails Consensus

Citron Sees Big Upside In Aphria, Says 'The Bidding War Is On'


Related Articles (APHA)

View Comments and Join the Discussion!

Posted-In: Bloomberg CBD Citron Research Greg Taylor Peter HorvathM&A Short Sellers Media Best of Benzinga