Aphria stock is down nearly 2% Friday. This result comes one day after Green Growth Brands’ (CSE:GGB) previous takeover bid expired.
Here’s what we know.
Aphria Stock: April 26, 2019
In 2018, Green Growth Brands made an all-stock offer to acquire Aphria Inc (TSX:APHA) (NYSE:APHA), an Ontario-based cannabis company that is committed to providing the global cannabis market with breakthrough innovation. However, announced on April 25, the take-over bid did not meet Aphria’s statutory minimum tender condition.
As a result, the bid to acquire Aphria Inc has expired; and according to News Wire, the Offer is “no longer open to any Aphria shareholder to tender their shares.” With the expiration of the bid, Aphria will receive $89 million, but this figure didn’t do anything to help Aphria stock today.
According to Yahoo Finance, as of 12:40 PM EDT, Aphria stock is trading at $7.56. This puts Aphria stock down 1.31% on the New York Stock Exchange.
What Aphria Had to Say about the Bid Expiration
Speaking on the news, Aphria’s interim CEO Irwin D. Simon said Aphria is “pleased to have this resolved in a favourable manner.” Using the $89 million in proceeds from the transaction, Simon says Aphria will “continue to move forward.” Specifically, the cannabis company will use the proceeds to create “long-term shareholder value by leveraging our production expansion.” Aphria also plans to use the $89 million to work on its brand positioning and its strategic global expansion initiatives.
The expiration of the bid could have ended in several other ways, so Simon is right when he says it was resolved in a favorable manner. But it doesn’t seem like Aphria stock got the memo. That said, the trading day isn’t over just yet, which means Aphria stock could still turnaround.
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