On Monday, December 31, Aphria (APHA) stock opened at 8.12 Canadian dollars. But throughout the week, it fell slightly to close at 8.07 Canadian dollars on Friday, January 4, a decline of about 60 basis points. So, there was little market movement (HMMJ) in the stock. However, there was a lot going on with Aphria last week, which we’ll discuss in this series.
Green Growth reaffirms takeover bid
First on the list of developments was the commitment from Green Growth on its takeover bid for Aphria. Last week, Aphria stockholders got a reaffirmation from Green Growth Brands on its commitment to take over Aphria. In its press release, Green Growth Brands indicated that it received early interest from “frustrated” shareholders looking to exit their investments. Green Growth further affirmed that Aphria’s shareholders will continue to hold control with a 60% ownership of the new entity.
Green Growth also provided reasons for why it is the right company to take over Aphria. According to Green Growth, its establishment in the US market, its vertically integrated operations, and Green Growth’s experience in the retail business make it the right company to have synergies with Aphria.
Over the last week, HEXO (HEXO), Supreme Cannabis (SPRWF), and Cronos Group (CRON) all emerged with big gains.
Next, we’ll discuss why Green Growth is indicating that Aphria is valuable.