Aphria says Green Growth Brands' takeover bid undervalues cannabis company

The target's board has set up an independent committee of directors to review the proposal

Hands holding marijuana plant
Green Growth’s offers values Aphria, a cannabis company, at around C$2.1 billion

Aphria Inc (TSX:APH) (OTCQB:APHQF) said Monday that a takeover bid from Green Growth Brands Ltd (CSE:GGB) undermines the Canadian cannabis producer. 

Green Growth’s all-stock offer would value Aphria at around C$2.1 billion, or about C$11 per share.

Aphria’s shares dipped more than 6% to US$5.86 in Monday pre-market trading. 

“We believe our offer will create value for both Aphria and Green Growth shareholders," Green Growth CEO Peter Horvath said in a press release. "We are confident that the significant premium we are offering and the opportunity to participate in the growth of a stronger, combined company are so compelling that we are taking our offer directly to Aphria’s shareholders.” 

Horvath, a retail veteran and former executive at American Eagle Outfitters Inc (NYSE:AEO) and DSW Inc (NYSE:DSW), looks to combine his experience with Aphria’s cannabis expertise.

Green Growth recently began trading on the Canadian Securities Exchange following a reverse takeover of Xanthic Biopharma Inc.

Aphria chair Irwin Simon said that the deal “significantly undervalues” the company and expressed concern about Green Growth’s brokered financing of C$300 million.

“The proposed offer is quite risky given GGB’s condition to complete a brokered financing at a price that is more than double the recent average of their share price, as a key term to the proposal,” said Simon in the company’s response.

Aphria’s board said it has set up an independent committee of directors to review the proposal.


Contact Lenore Fedow at [email protected]

Follow her on Twitter@LenoreMariee


Quick facts: Aphria

Price: 10.86 CAD

Market: TSX
Market Cap: $3.14 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...


Ascendant Resources drill program continues looking to expand south zone at...

Ascendant Resources (TSE: AND) President and CEO Chris Buncic joined Steve Darling from Proactive with news the company's drill program continues as the look at the South Zone of the Lagoa Salgada Project in Portugal. Buncic telling Proactive they are expecting to have results from this...

6 hours, 33 minutes ago

2 min read