Green Growth Brands Inc., a US cannabis producer, said that Aphria Inc., in an effort to acquire the company in nearly four weeks after the Ohio company announced its bid, I made an official offer to shareholders.
The proposed Aphria
APHA, + 3.17%
APHA, + 2.06%
Shareholders hold 1.5714 shares of green growth stocks for each outstanding Aphria stake. According to the Green Growth calculations, all share trading is Aphria's valuation of Canadian stocks at about $ 2.8 billion.
Green Growth said it would raise its C $ 7 A share value by A $ 300 million previously through the sale of shares. Green Growth said on Tuesday that it has pledged $ 150 million from investors.
The bidding will be held on Wednesday and will be open until May 9, Green Growth said. Green Growth said that Aphria, which owns about 1.2% of Aphria shares, already owns 3 million shares.
Previous: The hostile & # 39; argument offer for Aphria is scattered with the red flag.
AFPA said that the Green Growth, which is headquartered in Lington, Ontario, is expected to be acquired by Green Growth for the first time on Dec. 27, said the bid was "undervalued" to the business and has not received any official proposal. Aphria did not respond to a request for a bid on Tuesday afternoon, but on a Tuesday blog post, the company advised its shareholders to take no action regarding the offer.
The Green Growth backed by Schottensteins, an Ohio home builder who lucked out in retail, refused further comment or executive interviews.
Canadian regulators have suspended both stocks at approximately 4 pm. During the Eastern Time, US stocks of Aphria continued to trade. Aphria's US listed stock rose after the cessation, but it dropped again in after-hours trading once news was announced. Green growth stocks rose 6.9% at regular sessions.
Successful bid for Green Growth to buy Aphria means there is a significant change in existing Aphria shareholders. The Toronto Stock Exchange (TSX) and the New York Stock Exchange (two exchanges listing Aphria) do not allow companies that violate federal regulations to register their shares. Because Green Growth is illegally operated under US federal law, it is likely to be traded through the Canadian Stock Exchange and Green Counter in the United States.
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Aphria stock prices plunged last year after short primer Quintessential Capital Management and Hindenburg Reseach released a report that described Aphria as a "shell game" and blamed top executives for sacrificing shareholders and enriching themselves. CEO Vic Neufeld and co-founder Cole Cacciavillani continue to deny accusations by announcing they will leave the company earlier this month.
Weed shares were mixed on Tuesday. Canopy growth
tobacco, + 8.61%
CGC, + 9.66%
Aurora, marijuana increased by 1.4%
ACB, + 1.51%
ACB, + 0.45%
Down 1.4%, and Tilray Inc.
TLRY, + 1.88%
5.7 percent. ETFMG Alternative Harvest ETF
MJ, + 2.53%
It fell 0.3% in regular session on Tuesday.