Aphria is urging shareholders to take no action after another unsolicited takeover bid.
The Leamington cannabis cultivator stated in a news release that Green Growth Brand (GGB), based in Ohio, is again trying to acquire all outstanding common shares of the company in exchange for 1.5714 common shares of GGB. Aphria said the offer once again significantly undervalues the Leamington company. Aphria said GGB’s proposal is very similar to their earlier hostile proposal on December 27, 2018, which the Aphria board had determined significantly undervalued the company relative to its current and future value.
"Based on the 20-day volume weighted average price of GGB shares before GGB’s initial proposal and the expressed exchange ratio of 1.5714 common shares of GGB for each Aphria share, the offer reflects a discount of -23 per cent to the company’s average share price over the same period," said Irwin Simon, Aphria’s independent board chair.
Aphria shareholders are advised to take no action until the Board of Directors has made a formal recommendation to them.
Simon said Aphria is a market leader and has a tremendous opportunity to create substantial value for shareholders and any offer would need to be evaluated against the current and future value of the current strategic plan. Aphria added that the annualized harvest is expected to increase to 255,000 kg by the end of 2019.
The Leamington marijuana grower has a presence in more than 10 countries across five continents.