Aphria Inc (fka APHA)

[Noonehasthisusername]

APHA has too much baggage to receive a offer that will cause it to spike, IMO.
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https://investorplace.com/2019/01/odd-takeover-offer-aphria-stock-higher/


Lots of Red Flags
As I mentioned before, the hostile takeover offer from GGB is very weird.

First and foremost, the suitor is weird. Green Growth Brands is a U.S. cannabis retail company with one retail location and market caps of about C$800 million on the Canadian Securities Exchange and $200 million on the U.S. OTC markets. The company just started producing revenue a few months ago and is still running huge losses.

Moreover, it has only been publicly traded for a few months, and its shares only got to the stock exchanges through a reverse merger. Despite its relative infancy, Green Growth Brands is trying to fully acquire a Canadian cannabis producer at a price tag that represents more than twice the current value of GGB itself. That’s odd.

To make things more odd, Green Growth is backed by the Schottenstein family, billionaires who own stakes in multiple, huge retailers and attempted to launch a joint venture with Aphria back in 2017. The joint venture failed, but nonetheless raises eyebrows. Also, GGB’s second-largest shareholder is a fund backed by Aphria, and Aphria CEO Vic Neufeld sits on the board of that fund. There are also reportedly numerous overlaps and connections between the board of Aphria and the board of GGB.

In other words, there are a ton of red flags when it comes to the credibility of the suitor and the offer. Nonetheless, even if we disregard those red flags, there are more red flags involving the structure of the deal.