Green Growth Brands To Work With Tilray; Comes After GGB Commented on Offer for Aphria

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Alert Sent 2019-02-07 08:44:03 AM ET

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Update - Green Growth Brands To Work With Tilray; Comes After GGB Commented on Offer for Aphria

2019-02-07 08:43:37 AM ET (MT Newswires)



08:43 AM EST, 02/07/2019 (MT Newswires) -- Green Growth Brands Inc. (CSE: GGB, OTCQB: GGBXF) said Thursday that GGB Beauty LLC, a subsidiary, has executed a licensing agreement as of February 6, 2019 with Authentic Brands Group (ABG) and the Greg Norman brand. According to a related statement, the agreement is to develop a line of cannabidiol (CBD) infused personal care products designed for active adult men and women. As part of this arrangement, the company will be working with Tilray Inc. (TLRY) as the preferred supplier of the CBD ingredients to be used in these products.


Overnight Wednesday, GGB commented with respect to Aphria Inc.'s (TSX: APHA and NYSE: APHA) rejection of GGB's offer to acquire all of the issued and outstanding common shares of Aphria. GGB said it "continues to believe in the opportunity to combine the two businesses and benefit both groups of shareholders."


APHA was at last look down near 5% in US pre-market trade, having lost 9.4% on the NYSE yesterday.


GGB's statement in relation to Aphria said: "The combined entity of Aphria and GGB would create an unparalleled North American player with both Canadian and U.S. operations. GGB's Offer is one way to combine these businesses across borders, while creating significant value for shareholders of both companies. 


"Since its formation in 2018, GGB has pursued an expansion plan, including entry into new markets, designing a line of CBD-infused personal care products and through a combination of strategic partnerships, merger and acquisition activity and organic license capture. GGB intends to build out its business and sees the opportunity with Aphria as an important element of this strategy."


This comes after the chairman of Aphria said GGB's unsolicited all stock takeover offer significantly undervalues the Canadian pot company, adding that it's leaving the door open to other potential suitors, according to a BNN Bloomberg report late Wednesday afternoon. 


Earlier Wednesday, Aphria -- which has delayed in delivering, as promised, a line by line response to a short seller report of a few weeks ago that related to some of its overseas aquisitions -- rejected the hostile bid by GGB as "significantly undervalued and inadequate." 


Aphria shares -- which lost 9% on the TSX, Wednesday -- nearly halved towards the end of 2018 after the release of the controversial short seller report, but had shown signs of recovery of late, up to yesterday.


The GGB offer provides Aphria shareholders with 1.5714 common shares of GGB  for each Aphria share, including Aphria shares that may become issued and outstanding after the date hereof but prior to 5pm (Toronto time) on May 9, 2019 upon the exercise, conversion or exchange of any securities of Aphria that are exercisable for, convertible into or exchangeable for Aphria shares.