Green Growth Brands Inc. has filed its offer to acquire all of the shares in Aphria to securities regulatory authorities in Canada and the United States.
The company will officially commence its offer today (January 23). This is Green Growth’s second run at buying Aphria, after an initial approach was rebuffed in late December.
Green Growth has also announced that it has entered into a commitment letter with All Js Greenspace LLC, in which the latter will subscribe for and purchase up to $150 million of Green Growth shares.
This financing will act as a backstop to Green Growth’s previously announced intention to complete a $300 million equity financing in connection with the completion of its Aphria offer.
The offer provides Aphria shareholders with 1.5714 common shares of Green Growth for each Aphria Share, and will remain open until 5pm Toronto time, May 9.
Green Growth qualified: “There can be no assurance that the financing will be completed or what the value of a Green Growth share will be at the time of take up of Aphria Shares under the offer, which could be substantially less or more than $7.00 per Green Growth share.”
“his is an exciting opportunity for shareholders of both Green Growth and Aphria to build value and create the preeminent cannabis operator in North America.”
Peter Horvath, Green Growth (pictured)
“We are pleased to officially launch our bid for Aphria. This is an exciting opportunity for shareholders of both Green Growth and Aphria to build value and create the preeminent cannabis operator in North America,” said Peter Horvath, CEO of Green Growth.
“The combination of Aphria’s Canadian supply and wholesale agreements with Green Growth’s vertically integrated operations and rapidly growing retail footprint in the United States best positions us to capitalize on the massive growth opportunities in North America and beyond. I encourage Aphria shareholders to tender their shares to our offer.”
Green Growth argues that the combination of the two companies is “extremely compelling” and that its offer represents “an unparalleled value-enhancing opportunity” for Aphria. It goes so far as to claim that a merger would result in “North America’s preeminent cannabis company”.
While Green Growth says its offer is not subject to any financing condition, it has stated that it intends to complete, immediately following the take up of Aphria Shares under the offer, a third-party equity financing of $300 million at a share price equal to $7.00 per Green Growth share.
Meanwhile, Green Growth has announced the formal appointment of Peter Horvath, current Chief Executive Officer of its operating subsidiary Green Growth Brands LLC, as Chief Executive Officer of the parent company.Cannabis Business Worldwide