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.