Aphria Inc (fka APHA)

[MMPRuser]

the more news I read about this deal, the funnier it is...

http://business.financialpost.com/business/aphria-closes-425-million-nuuvera-deal-as-international-strategy-takes-shape

Shareholders of Toronto-based Nuuvera, will receive $0.62 cash and 0.35 of an Aphria share for each Nuuvera share they hold. That equates to around $50 million in cash and $375 million in Aphria stock (as of Friday’s closing price).

Unlike Broken Coast Cannabis Inc., an established medical cannabis company that Aphria acquired in February for around $217-million, Nuuvera has no experience producing cannabis and has posted virtually no revenue.

To a degree, Aphria is also buying back its own product in the deal. In August 2017, it agreed to supply Nuuvera with 17,000 kilograms of cannabis annually, as part of a complicated deal that saw Aphria invest $2 million in Nuuvera and agree to sell the company land in Leamington, Ont. It also agreed to help build and run Nuuvera’s greenhouses in return for a payment of $0.10 per gram sold from the facility.

So if I understand all of this correctly, Aphria management and insiders have been working this deal now for about 14 months.

First they set up a dummy corporation with super cheap insider shares, then they get Aphria to invest in it and make a deal with it (too easy, it is all one team), they bring it public, then they buy it....

It is an entity that was started by Aphria management insiders, Aphria's board of directors allowed major deals to go through with this entity, eventually Aphria buys it out at almost twice the price of Broken Coast....

wow, this is bad