On January 31, Aphria (APHA) rose nearly 13.5%. The stock rose due to a positive change in investors’ perception of Aphria’s value following Green Growth’s comments.
In an interview with Bloomberg, Green Growth’s CEO, Peter Horvath, said that “It’s likely there needs to be some negotiation and there’s a chance that the offer might change.” The key takeaway is the indication that Green Growth is open to change its offer.
Earlier in January, when Aphria urged investors not to take action on Green Growth’s offer, Aphria’s chairman, Irwin D. Simon, called the offer “opportunistic.” He said that Green Growth’s offer didn’t “reflect the substantial value and growth prospects” that the company has built.
Green Growth is ready to change its offer since Aphria thinks that the original offer undervalued the company. As a result, Green Growth will likely increase its offer.
Cannabis companies are consolidating. Canopy Growth (WEED), Tilray (TLRY), and Cronos Group (CRON) will likely be in the market to acquire companies (MJ).
Next, we’ll discuss why Aphria rose on January 31.