Shares of Aphria Inc.
sank 6.4 percent in premarket trading on Wednesday after the Canadian cannabis company rejected Green Growth Brands Inc.
the hostile takeover bid, calling it "significantly devalued and inadequate." Aphria said the offer offers its shareholders a substantial discount to their current and future value rather than a premium, and would effectively give Green Growth a 36% stake in Aphria in exchange for participation in a company with "limited operations" or experience in the company. cannabis industry. Based on the 20-day weighted average price of Green Growth shares before announcing the offer on January 22, the offer reflected a 23% discount on Aphria's share price over the same period. "Regardless of their blatant attempts to suggest otherwise, GGB is asking Aphria shareholders to accept a substantial discount on their shares, as well as the exit of TSX and the NYSE, resulting in a vast dilution of their property in Aphria," he said. said the president of Aphria. Irwin Simon. Aphria said it received a written opinion from its financial advisor Scotiabank that the hostile offer is financially inadequate to Aphria's shareholders. US-listed Aphria shares fell 16% in the last three months, while ETFMG Alternative Harvest ETF
rose 6.7% and the S & P 500
SPX, + 0.47%
fell by 0.6%.
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