The chairman of Aphria (NYSE:APHA,TSX:APHA) has clarified his stance on a takeover bid from Green Growth Brands (GGB) (CSE:GGB) as the multi-state operator commits to its proposed strategy.
Following a statement from GGB restating its intentions to pursue the takeover, Irwin Simon, chairman of Aphria, told CNBC’s Squawk Box on Wednesday (January 2) there had been no official offer for the company.
When asked if GGB could serve as a potential strategic partner, Simon said currently “absolutely not.”
Cannabis - Will The Fortune 500 Join The Party?
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
“First of all there has been no official offer for the company, ok? GGB came out and said they like to either partner or merge with the company,” Simon said.
However, he added there is a possibility of a partnership at a later date due to GGB’s experience in the retail side of the cannabis industry.
On Monday (December 31) Peter Horvath, CEO of GGB, said since launching its bid, it had noticed the interest from investors of the Canadian firm due to the premium offered and a new-found interest in the valuation of his company.
“When investors consider our trailing revenue, recent license wins in Nevada, and a buildout in the new market of Massachusetts they agree that it is not a question of if Green Growth reaches C$7.00 per share, but when,” said Horvath. “We understand that there are some in the market who want to focus on destroying value at Aphria, but we are committed to creating it.”
Last Thursday (December 27), GGB made public its bid for the ownership of Aphria to shareholders of both companies
The US-based venture offered 45.5-percent premium for holders of Aphria, valued at a price of C$11 per share. In exchange shareholders would receive 1.5714 common shares of GGB.
Aphria then officially turned down the proposal, saying GGB’s offer was 23 percent below the intended target.
“The Board has determined that the GGB proposal, as it currently stands, significantly undervalues the company,” Simon said in a statement.
Market confusion on Aphria and GGB relationship
In its new update to the market, GGB said Aphria doesn’t own any stake in GGB and none of its executives act as board members for the multi-state operator.
“The clearest evidence for lack of influence in Green Growth’s acquisition of Aphria is the fact Aphria’s board has refused to engage and rejected Green Growth’s premium offer,” the company said.
The most direct connection between the two is through a JV formed between the Schottenstein Group, which backs GGB, and Liberty Health Sciences (CSE:LHS) for an application of a processing and dispensary license in Ohio.
Liberty was originally created as a division of Aphria set to establish a presence in the US. However, due to TMX Group rulings and a possible delisting from the TSX, Aphria was forced to divest its stake in Liberty.
Aphria retains an option to buy back its stake in Liberty until 2023 thanks to the deal it created to sell its portion of the US company.
The Canadian cannabis producer also notified investors its “passive investment” in Green Acre Capital Fund II represented another investment connection to GGB.
New Aphria chairman offers response to GGB situation
During the interview, Simon added there is an option for Aphria to continue its strategy alone or find a partner in the vein Cronos Group (NASDAQ:CRON,TSX:CRON) or Canopy Growth (NYSE:CGC,TSX:WEED) have done.
Simon is a recent hire of Aphria, as he was appointed an independent chairman for the board of directors, replacing Aphria’s own CEO Vic Neufeld in the role.
He was instituted following the short seller attack Aphria faced from Quintessential Capital Management and Hindenburg Research calling into question its acquisitions in the Latin American market and its partners.
Investors are still awaiting for a full response from Aphria to all the issues raised by the short sellers.
Market reaction
Since announcing its takeover bid, GGB’s stock has seen a jump in its price and market value.
Despite its growth on Wednesday the multi-state operator closed the trading session with a 1.08 percent decline and a price per share of C$4.60.
Aphria enjoyed an increase to its stock in New York and Toronto, as the company finished with a price of US$6.02 and C$8.15 respectively.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Green Growth Brands is a client of the Investing News Network. This article is not paid-for content.
Cannabis - Will The Fortune 500 Join The Party?
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
Keep reading to find out more cannabis highlights from the past five days.
Cannabis - Will The Fortune 500 Join The Party?
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
Analyst gives top pick as US market gains momentum
Vivien Azer, a managing director at Cowen (NASDAQ:COWN) who covers the cannabis space, told the Street she sees Green Thumb Industries (CSE:GTII,OTCQX:GTBIF) as the top cannabis stock right now.
“We think that Green Thumb has a really nice geographic mix and an attractive profitability margin,” Azer said, while also crediting Green Thumb with holding a license in New York, a market that is soon set to legalize recreational cannabis.
In the past, Azer has called for the cannabis industry to be worth US$40 billion.
When asked about the potential for legalization in the US, Azer pumped the breaks on any kind of sweeping policy taking over in the near future.
“We’re not calling for (legalization) in the 117th Congress, but we do think there is an opportunity to find bipartisan support for some improvement in the federal landscape,” she said.
Azer believes this type of policy change would allow cannabis companies in the US to obtain commercial banking and insurance services, and for these firms to secure listings on US-based senior exchanges.
Aphria CEO gives Tilray merger update
Aphria CEO Iriwn Simon went on CNBC’s Squawk on the Street show during 420 on Tuesday (April 20) to discuss all aspects of the cannabis business.
When asked about the recent voting delay from Tilray (NASDAQ:TLRY) shareholders, who need to make a decision on the company’s proposed merger with Aphria, the executive pushed back on the idea that the move is punt by investors, instead suggesting it is a necessary motivational manoeuver.
Cannabis - Will The Fortune 500 Join The Party?
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
“Today with retail shareholders out there and apathy in voting it’s going to take a little longer in regards to getting the vote done,” said Simon. “We will get the vote done, I’m very confident of that.”
Simon also pushed back against the idea that US-based multi-state operators have the advantage over Canadian producers when it comes to US market domination.
“When legalization does happen, the new Tilray will be ready to make a major entry into the US markets,” Simon told the Squawk on the Street audience.
While the US doesn’t have a federal legalization framework in place, multi-state operators have been able to capture market share by going after states with cannabis programs that allow for the sale of medical or even recreational products.
Cannabis company news
- Neptune Wellness Solutions (NASDAQ:NEPT,TSX:NEPT) issued an update to investors, confirming its business transition into an integrated consumer packaged goods company with plans for new CBD product development for the US market. “Neptune’s future will be focused on brand creation, accelerated organic growth complemented by new acquisitions with operational excellence as our foundation,” the company said.
- TerrAscend (CSE:TER,OTCQX:TRSSF) confirmed an acquisition deal for three dispensaries in Pennsylvania at a value of US$70 million. Jason Wild, executive chairman of the firm, identified Pennsylvania as a “key focus” for TerrAscend.
- Charlotte’s Web Holdings (TSX:CWEB,OTCQX:CWBHF) obtained Health Canada approval to use its proprietary hemp cultivars for outdoor cultivation. This move will help make Charlotte’s Web products more readily available in Canada.
- Bhang (CSE:BHNG,OTCQX:BHNGF) announced a delay in its financial report for the year ended December 31, 2020. The delay is being caused by the illness of an auditor, and the company now expects to file its report by the end of May.
Don’t forget to follow us @INN_Cannabis for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Cannabis - Will The Fortune 500 Join The Party?
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos Group” or the “Company”) will hold its 2021 First Quarter Earnings Conference Call on Friday, May 7, 2021 at 8:30 a.m. EDT. Cronos Group’s senior management team will discuss the Company’s financial results and will be available for questions from the investment community after prepared remarks.
A live audio webcast of the earnings call will be available on the Company’s website at https://ir.thecronosgroup.com/events-presentations . The webcast of the call will be archived for replay on the Company’s website.
Participants may also listen via telephone by dialing (866) 795-2258 toll-free from the U.S. and Canada, or (409) 937-8902 if dialing from outside the U.S. and Canada (conference ID: 3586688). If joining by phone, please dial into the call 15 to 20 minutes prior to the start of the conference call to avoid any long hold times.
About Cronos Group Inc.
Cronos Group is an innovative global cannabinoid company with international production and distribution across five continents. Cronos Group is committed to building disruptive intellectual property by advancing cannabis research, technology and product development. With a passion to responsibly elevate the consumer experience, Cronos Group is building an iconic brand portfolio. Cronos Group’s portfolio includes PEACE NATURALS ™, a global wellness platform, two adult-use brands, COVE ™ and Spinach ™, and three hemp-derived CBD brands, Lord Jones ™, Happy Dance ™ and PEACE+ ™. For more information about Cronos Group and its brands, please visit: www.thecronosgroup.com .
Forward-looking Statements
This press release may contain information that may constitute “forward‐looking information” or “forward‐looking statements” within the meaning of applicable Canadian and U.S. securities laws (collectively, “Forward-looking Statements”). All information contained herein that is not clearly historical in nature may constitute Forward‐looking Statements. In some cases, Forward‐looking Statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “plan”, “anticipate”, “intend”, “potential”, “estimate”, “believe” or the negative of these terms, or other similar expressions intended to identify Forward‐looking Statements. Some of the Forward-looking Statements contained in this press release include the Company’s intention to build an international iconic brand portfolio and develop disruptive intellectual property. Forward‐looking Statements are not guarantees of future performance and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks, financial results, results, performance or achievements expressed or implied by those Forward‐looking Statements. A discussion of some of the material risks applicable to the Company can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, which has been filed on SEDAR and EDGAR and can be accessed at www.sedar.com and www.sec.gov/edgar , respectively. Any Forward‐looking Statement included in this press release is made as of the date of this press release and, except as required by law, Cronos Group disclaims any obligation to update or revise any Forward‐ looking Statement. Readers are cautioned not to put undue reliance on any Forward‐looking Statement.
Cronos Group Contact
Shayne Laidlaw
Tel: (416) 504-0004
investor.relations@thecronosgroup.com
News Provided by GlobeNewswire via QuoteMedia
Cannabis - Will The Fortune 500 Join The Party?
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
An Emerging Markets Sponsored Commentary
A report just released in early April confirms that the cannabis beverage sector is thriving. According to this report from industry stalwart, Marijuana Business Daily while sales for vapes, pre-rolls and flower were lackluster, cannabis beverages shined:
“The beverage category continued to shine in the first quarter, leading all categories with sales growing 68.4% over the same period last year and 14.2% versus the fourth quarter of 2020. Most beverage categories experienced double-digit growth going into 2021.”
That’s a staggering increase. And from the looks of the numbers, it’s a trend, not a fad. Cannabis beverages are becoming an option for consumers as more and more hit shelves and brands get smarter about dosing, flavors, and what customers want. With the summer months fast approaching, sales have been picking up in key markets.
It’s a good time to be a health and wellness company, and the cannabis beverage space as the category leads the industry in growth. There are only a few companies leading the industry, including HEXO Cannabis Canopy Growth Corp, Keef Beverages (Private). BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) has been making significant progress recently, and is now run by former Pepsi Co. executive, Melise Panetta, a veteran CPG and Cannabis executive with years of expertise selling and marketing some of the world’s most recognized beverage brands. It also added two veteran CPG (Consumer Packaged Goods) senior sales leaders to the organization.
BevCanna not only owns their own water source, a pristine alkaline spring water aquifer in British Columbia, but a world–class 40,000–square–foot, HACCP certified manufacturing facility which has a bottling capacity to produce up to 200M bottles annually. BevCanna’s extensive distribution network includes more than 3,000 points of retail distribution through its market-leading TRACE brand in Canada, a growing natural health and wellness e-commerce platform, Pure Therapy , its fully licensed Canadian cannabis manufacturing plant and distribution network, and a partnership with #1 U.S. cannabis beverage company Keef Brands .
Growing product line, world class leadership, and a growing sales team with experience, BevCanna is positioned to capitalize on the growing demand of Cannabis 3.0 beverages, and it’s looking to capture a piece of the market, which appears to be one of the hottest right now in the ever expanding cannabis industry.
About The Emerging Markets Report:
The Emerging Markets Report is owned and operated by Emerging Markets Consulting (EMC), a syndicate of investor relations consultants representing years of experience. Our network consists of stockbrokers, investment bankers, fund managers, and institutions that actively seek opportunities in the micro and small-cap equity markets.
For more informative reports such as this, please sign up at http://www.emergingmarketsllc.com/newsletter.php
Must Read OTC Markets/SEC policy on stock promotion and investor protection
- https://www.otcmarkets.com/learn/policy-on-stock-promotion
- https://www.otcmarkets.com/learn/investor-protection
- https://www.sec.gov/news/press-release/2017-79
- https://www.sec.gov/oiea/investor-alerts-bulletins/ia_promotions.html
Section 17(b) of the Securities Act of 1933 requires that any person that uses the mails to publish, give publicity to, or circulate any publication or communication that describes a security in return for consideration received or to be received directly or indirectly from an issuer, underwriter, or dealer, must fully disclose the type of consideration (i.e. cash, free trading stock, restricted stock, stock options, stock warrants) and the specific amount of the consideration. In connection therewith, EMC has received the following compensation and/or has an agreement to receive in the future certain compensation, as described below.
We may purchase Securities of the Profiled Company prior to their securities becoming publicly traded, which we may later sell publicly before, during or after our dissemination of the Information, and make profits therefrom. EMC does not verify or endorse any medical claims for any of its client companies.
EMC has been paid $350,000 by BevCanna Enterprises, Inc. for various marketing services including this report. EMC does not independently verify any of the content linked-to from this editorial. http://emergingmarketsllc.com/disclaimer.php
Emerging Markets Consulting, LLC
Florida Office
390 North Orange Ave Suite 2300,
Orlando, FL 32801
E-mail: jamespainter@emergingmarketsllc.com
News Provided by GlobeNewswire via QuoteMedia
BioHarvest Sciences (CSE: BHSC) will be presenting at the Benzinga Cleantech Small Cap Conference taking place on April 22, 2021. We invite our shareholders and all interested parties to explore cleantech small cap investment opportunities through two days of networking, dealmaking and discovery.
Sign up to get a free spectator pass for the event: https://www.benzinga.com/events/small-cap/clean-tech/
About the Benzinga Cleantech Small Cap Conference
The Benzinga Cleantech Small Cap Conference bridges the gap between cleantech companies, investors, and traders. Discover the companies in the cleantech industry who are moving the world forward through accessible green energy, energy efficiency, and innovative sustainability solutions.
For more information and/or to register for the conference please visit: https://www.benzinga.com/events/small-cap/clean-tech/
We look forward to seeing you there.
For further information:
BioHarvest Sciences
Ilan Sobel
6046221186
ilan@bioharvest.com
www.bioharvest.com
News Provided by Newsfile via QuoteMedia