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.