Aphria's stock plunge after company rejects hostile takeover bid from Green Growth


Shares of Aphria Inc.

APHA, -1.20%

APHA, -0.99%

sank 6.4 percent in premarket trading on Wednesday after the Canadian cannabis company rejected Green Growth Brands Inc.

GGBXF, -1,38%

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

MJ -1.88%

rose 6.7% and the S & P 500

SPX, + 0.47%

fell by 0.6%.

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