Post/CP say Aphria rejects Xanthic's overtures

Post/CP say Aphria rejects Xanthic's overtures

Aphria Inc (C:APHA)
Shares Issued 249,762,289
Last Close 12/28/2018 $8.52

Monday December 31 2018 - In the News

The Financial Post reports in its Saturday edition that Aphria shares shot up as much as 14 per cent early Friday before easing back as investors responded to an American company's takeover proposal that valued the cannabis company at $2.8-billion. 

A Canadian Press dispatch to the Post says that Aphria shares were off their early highs at $8.46 after 30 minutes of trading at the Toronto Stock Exchange, up 89 cents from Thursday's close at $7.57. Ohio-based Xanthic Biopharma, which does business as Green Growth Brands, announced after Thursday's close that its offer valued its own shares at $7 each and Aphria shares at $11 per share. Aphria responded before markets opened on Friday, saying the actual value of Xanthic shares is substantially lower than the announced offer price and, at current market rates, undervalues the Leamington, Ont., cannabis producer. In early trading Friday, 

Xanthic shares fell 7 per cent to $4.60, down 38 cents, at the Canadian Securities Exchange. At that price, its offer of 1.5714 Xanthic shares would value Aphria shares at about $7.23. 

Aphria said in a statement Friday that "their proposal falls short of rewarding our shareholders for participating in such a transaction."

© 2018 Canjex Publishing Ltd.

Unfortunately, Mr. Hodson says no end is in sight. As long as (a) investors continue to panic, and rush to sell any stock targeted by short sellers, and (b) regulators do nothing, then we are likely to continue to see Canadian companies attacked by "short and distort" reports posted on the Internet.

Globe And Mail On APHA

Aphria Inc (C:APHA)
Shares Issued 249,762,289
Last Close 12/28/2018 $8.52
Monday December 31 2018 - In the News

Also Xanthic Biopharma Inc (2) (C:GGB) In the News

The Globe and Mail reports in its Saturday edition that a web of connections between Aphria and its suitor has come into focus in the wake of an unusual takeover offer for the Canadian cannabis company. 

A quadruple-bylined item led by Tim Kiladze says that Aphria directors, including chief executive officer Vic Neufeld, have been part of business dealings in the United States with the Schottensteins -- the U.S. family behind the recent takeover proposal from Xanthic Biopharma. Xanthic operates in the cannabis market as Green Growth Brands. 

Aphria director Shawn Dym has also previously served on Green Growth's board, and Mr. Neufeld has been on the advisory board of one of Green Growth's largest investors. 

The proposal comes with unusual terms relative to merger and acquisition norms. Aphria's board rejected the deal on Friday. 

Under the share-for-share deal, Green Growth has proposed to acquire Aphria for $11 per share or $2.8-billion. These figures are "based on a valuation of $7 a share" of Green Growth. 

As of Thursday's market close, the suitor's shares were worth $4.98 each. At $7 a share, the financing would be completed at roughly double the company's volume-weighted average trading price in December.

© 2018 Canjex Publishing Ltd.

From The Bullboards

RE:I'm surprised no one is talking about Vics removal

Jodiangel17 wrote:"Aphria also may have given a clue about what was found in an internal investigation by removing Chief Executive Vic Neufeld a major target of the short sellers theory from the chairman role in a little-noticed announcement that hit directly after Green Growth publicly announced its bid, timing that could lead one to believe that the two actions were coordinated to lessen the impact of the second. Neufeld sits on the advisory board of Green Acre Capital, which took more than C$30 million from Aphria in the fiscal first quarter and is an investor in Green Growth, through one of its funds."

Click Here

We havent seen the last of GGB

The most recent takeover bid for our company was what government’s do all the time. It’s a form of fishing to get a feel for public opinion and in this case market sentiment. Ofcourse the first offer was shut down immediately because it made zero sense for MOST of the shareholders. Make no mistake. There are shareholders over many media sources that were favourable with this offer. I found this frightening to the future of my holdings and as investors, you should be concerned as well. A lot of information was gathered, extrapolated and analyzed with this recent takeover bid. As far fetched as it seemed, it was all orchestrated for a reason. We haven’t seen the last of the billionaire boys from Ohio. The next bid will be the real deal.

Regards
Joe Boston 

http://www.stockhouse.com/companies/bullboard?symbol=t.apha&postid=29169780

RE:A bit worried about hostile takeovers, see ownership below

6,500 shares (not alot i know), but not selling at $11.........no lower than $20. Why would i, lowest cost producer and this is just the beginning of showing increasing profits over the next year.

Aphria says Green Growth's proposed hostile bid undervalues company

2018-12-28 10:26:33 AM ET (Reuters)


(Adds analyst comment, details about valuation; updates share movement)

Dec 28 (Reuters) - Canadian cannabis producer Aphria Inc said on Friday Green Growth Brands Ltd's proposed C$2.8 billion ($2.06 billion) all-stock hostile bid "significantly" undervalued the company.

U.S. cannabis retailer Green Growth said on Thursday it would offer 1.5714 shares for each Aphria share. The company said its valuation was based on a price of C$7 per share.

Aphria's shares were up 11.5 percent at C$8.44, while those of Green Growth rose 3.4 pct to C$5.15 in early trading.

Green Growth's offer is "based on a hypothetical valuation of its own shares, with no relation to the current price," Aphria said on Friday. The company also did not give enough time to respond, before making the offer public, Aphria added.

In an emailed statement on Friday, Green Growth Chief Executive Officer Peter Horvath said the offer would create value for shareholders of both companies.

"Together, we can unleash synergies between our teams, assets and geographies, forming a combined enterprise that will accelerate our collective growth strategies in Canada, the U. S. and overseas," Horvath said.

The buyout offer is unlikely to succeed, according to Chris Damas, editor of the BCMI Cannabis Report, a newsletter on investment in cannabis stocks.

"It is an opportunistic attempt to buy a larger company and I doubt it will be successful," Damas said.

House Positions for C:WEED from 20181228 to 20181228

House	Bought	$Val	Ave	Sold	$Val	Ave	Net	$Net
7 TD Sec	91,479	3,342,628	36.54	63,565	2,324,270	36.565	27,914	-1,018,358
13 Instinet	25,140	917,330	36.489	5,900	215,711	36.561	19,240	-701,619
33 Canaccord	5,080	186,762	36.764	277	10,114	36.513	4,803	-176,648
39 Merrill Lynch	27,285	998,010	36.577	22,929	836,783	36.495	4,356	-161,227
9 BMO Nesbitt	21,065	771,036	36.603	16,791	613,835	36.557	4,274	-157,201
53 Morgan Stanley	3,210	117,334	36.553	726	26,481	36.475	2,484	-90,853
5 Penson	15,878	580,286	36.547	14,364	527,505	36.724	1,514	-52,781
222 JP Morgan	1,400	51,014	36.439	0			1,400	-51,014
80 National Bank	10,155	370,717	36.506	8,825	322,972	36.597	1,330	-47,745
143 Pershing	1,429	52,026	36.407	373	13,656	36.611	1,056	-38,370
90 Barclays	1,000	36,339	36.339	0			1,000	-36,339
79 CIBC	151,485	5,530,045	36.506	150,676	5,502,880	36.521	809	-27,165
14 ITG	635	23,019	36.25	2	73	36.50	633	-22,946
57 Interactive	605	22,183	36.666	274	9,959	36.347	331	-12,224
72 Credit Suisse	300	10,951	36.503	0			300	-10,951
70 Manulife	100	3,632	36.32	0			100	-3,632
3 AltaCorp	1,878	68,787	36.628	1,861	68,215	36.655	17	-572
68 Leede	200	7,326	36.63	200	7,353	36.765	0	27
36 Latimer	0			37	1,367	36.946	-37	1,367
28 BBS	0			45	1,633	36.289	-45	1,633
88 Credential	2,675	97,357	36.395	2,860	104,295	36.467	-185	6,938
15 UBS	0			200	7,296	36.48	-200	7,296
99 Jitney	2,900	105,758	36.468	3,200	116,841	36.513	-300	11,083
65 Goldman	100	3,658	36.58	500	18,262	36.524	-400	14,604
56 Edward Jones	0			475	17,536	36.918	-475	17,536
62 Haywood	500	18,350	36.70	2,000	73,270	36.635	-1,500	54,920
124 Questrade	5,665	207,058	36.55	7,703	282,165	36.631	-2,038	75,107
101 SG Capital	0			3,374	124,475	36.892	-3,374	124,475
74 GMP	0			6,594	240,264	36.437	-6,594	240,264
19 Desjardins	5,625	206,653	36.738	14,060	513,120	36.495	-8,435	306,467
1 Anonymous	125,849	4,594,369	36.507	135,855	4,955,827	36.479	-10,006	361,458
2 RBC	21,174	774,166	36.562	38,255	1,397,025	36.519	-17,081	622,859
85 Scotia	23,222	849,216	36.569	44,113	1,612,827	36.561	-20,891	763,611
TOTAL	546,034	19,946,010	36.529	546,034	19,946,010	36.529	0	0

House Positions for C:CRON from 20181228 to 20181228

House	Bought	$Val	Ave	Sold	$Val	Ave	Net	$Net
7 TD Sec	24,635	344,358	13.978	5,640	79,340	14.067	18,995	-265,018
2 RBC	12,470	175,239	14.053	6,982	97,821	14.01	5,488	-77,418
13 Instinet	9,960	139,055	13.961	4,770	66,695	13.982	5,190	-72,360
9 BMO Nesbitt	4,115	57,196	13.899	1,374	19,494	14.188	2,741	-37,702
99 Jitney	2,400	33,651	14.021	1,300	18,217	14.013	1,100	-15,434
90 Barclays	800	11,173	13.966	0			800	-11,173
143 Pershing	780	11,015	14.122	40	561	14.025	740	-10,454
72 Credit Suisse	400	5,591	13.978	0			400	-5,591
53 Morgan Stanley	600	8,391	13.985	300	4,257	14.19	300	-4,134
5 Penson	4,995	70,012	14.016	4,700	66,115	14.067	295	-3,897
57 Interactive	600	8,399	13.998	400	5,613	14.033	200	-2,786
88 Credential	200	2,798	13.99	290	4,038	13.924	-90	1,240
19 Desjardins	7,500	105,290	14.039	7,675	107,683	14.03	-175	2,393
85 Scotia	550	7,737	14.067	1,927	26,978	14.00	-1,377	19,241
80 National Bank	1,200	16,925	14.104	3,020	42,010	13.911	-1,820	25,085
124 Questrade	859	12,037	14.013	4,357	60,790	13.952	-3,498	48,753
1 Anonymous	39,991	559,492	13.99	43,790	613,102	14.001	-3,799	53,610
59 PI	0			5,000	71,000	14.20	-5,000	71,000
39 Merrill Lynch	10,600	148,506	14.01	17,470	244,231	13.98	-6,870	95,725
79 CIBC	89,490	1,252,075	13.991	103,110	1,440,995	13.975	-13,620	188,920
TOTAL	212,145	2,968,940	13.995	212,145	2,968,940	13.995	0	0