Aphria says that bid represents a 23 percent discount to Aphria's share price, based on the 20-day volume-weighted average price of Green Growth Brands stock.
Aphria (NYSE:APHA) rejected Green Growth Brands' (OTCQB:GGBXF) hostile bid Tuesday. It was rejected on the grounds that the bid was too low based on GGB’s $4.42 USD closing price that day (the offer was actually made in Canadian dollars for C$5.87, as Green Growth has gone public on the Canadian Stock Exchange). Green Growth offered 1.5714 of its common shares for each Aphria share.
Green Growth formally launched the offer in January. Based on Tuesday closing prices, the offer is worth C$2.3 billion, which is much lower than Aphria’s current market value of C$3.3 billion. The same month, Columbus CEO went to Las Vegas to see the company it purchased there and the associated retail operation, called The Source. Green Growth boasts a highly-experienced retail executive team in the nation. CEO Peter Horvath has expressed confidence in its ability to become a worldwide leader of cannabis retail.