- Welcomes the early expression of interest from a growing number of disappointed Aphria shareholders who want to exit a failed investment.
- The offer, estimated at C $ 11.00 per Aphria share, represents a significant and compelling premium of 45.5% of the Aphria closing price on the Toronto Stock Exchange (“TSX”) on December 24, 2018 and 46.0% of the weighted average price of Aphria by TSX for the last 10 trading days ending December 24, 2018
- Shareholders of Aphria will retain control over the form of the organization with a share of ~ 60%
COLUMBUS, Ohio, December 31, 2018 (NEWSWIRE GLOBE) – Green Growth Brands Inc. ("Green Growth") (CSE: GGB) confirms its commitment to launch an offer ("Offer") for the purchase of all issued and outstanding common shares of Aphria Inc. ("Aphria") (TSX: APHA and NYSE: APHA) Which he does not yet own and welcomes the early expression of interest from Aphria shareholders, who are disappointed with the work of Aphria and the lack of convincing plans for the future of the company.
“Since we announced our intention to start absorbing Aphria, we have seen two things. First, Aphria shareholders welcome a premium offer of 45% or more, because they understand the significant value that our combined teams, assets, and geographic location can use. Secondly, a real interest in the market for understanding Green Growth and our assessment, ”said Peter Horvath, CEO of Green Growth. "When investors look at our final return, recent license wins in Nevada and growth in the new Massachusetts market, they agree that this is not a question if a Green growth reaches C $ 7.00 per share, but when“We understand that there are people in the market who want to focus on destroying value in Aphria, but we are striving to create it.”
Why Green Growth and Aphria are suitable for each other
By acquiring Aphria, Green Growth provides Aphria shareholders with the opportunity to participate in a much wider US market with a much greater long-term sales potential. Combining these two companies will create an unprecedented North American player with operations on both sides of the border, combining Canadian Aphria supply and wholesale agreements with vertically integrated Green Growth operations, including growing, production and retail. The combination also combines the talent of veterans of Aphria in the greenhouse industry and pharmaceuticals with a team of Green Growth retail experts from well-known retail chains, including Designer Shoe Warehouse Inc. and L Brands Inc. (Victoria's Secret). Together, the combined company will become the largest US market capitalization operator and the only North American cannabis operator.
Green Growth success rates and why a 7 C $ rating makes sense
Green Growth has been very successful, and within a few months it has achieved success achieved by other cannabis companies. Green growth has a current fully dilutedone market capitalization of over 1.1 billion Canadian dollars.
Management believes that the additional value received as a result of recent announcements and short-term business initiatives, which are expected to be implemented in the near future, is not yet reflected in the price of its shares, and is confident in the minimum amount of $ 7.00 for evaluating stock prices for the following reasons:
- Green Growth has attracted more than 150 million Canadian dollars of capital since its inception and at the end of 2018 has become a public way of reverse takeover. Today Green Growth owns, manages and / or licenses two leading cannabis retailers under the slogan “The + Source”2 and a facility for growing and processing, all located in Las Vegas, Nevada. Cultivation and processing is 12 000 sq. M. Feet and has a potential annual capacity of ~ 1600 kg. In addition, Green Growth, subject to regulatory approval, has an irrevocable purchase agreement for the purchase of a cultivation facility in Pahrump, Nevada. Pahrump plant will produce in the near future.
- Green Growth recently received seven additional licenses for retail outpatient clinics in Nevada, which, together with its current operations and the Pahrump plant, are expected to generate a total revenue of ~ 275 million Canadian dollars by 2020.
- Green Growth has the first cannabidiol (CBD) on the market.
- Green Growth recently announced the acquisition of Just Healthy LLC, which holds preliminary registration certificates for a registered medical marijuana dispensary in Northampton, Massachusetts, as well as a growing and processing site, also located in Northampton. The license allows up to three full medical dispensaries. It is expected that Just Healthy LLC by 2020 will bring additional income in the amount of about 130 million Canadian dollars.
- Green Growth has an extensive portfolio of value-creating initiatives and strategic partnerships, including working with six different major developers, representing an extensive network of malls in the United States, to launch more than 450 sales kiosks in key locations. In addition, to illustrate confidence in the value of a fee of C $ 7.00 under the Offer, Green Growth plans to complete parallel brokerage financing of C $ 300 million at the same price per share, and Green Growth insiders pledge to fully support the financing.
When appraised C $ 7.00 per share, Green Growth is fully divorced3 The total value of the company is ~ 1.6 billion Canadian dollars. Based solely on the current operations of Green Growth in Nevada, Pahrump and Just Healthy LLC, Green Growth will trade at an estimated EBITDA of TEV / 2020E 12x, which represents a discount of over 50% to the current large marijuana multipliers. In addition, taking into account the creation of value from its short-term business initiatives, which are expected to be implemented in the near future (including kiosks, e-commerce and wholesale), Green Growth will trade significantly lower than EBITDA TEV / 2020E in 12 time.
Shareholders of Aphria will continue to retain control over the form of the organization owning ~ 60%. Shareholders of Green Growth will have an ownership share of ~ 34%, and subscribers for funding in the amount of 300 million Canadian dollars will have an ownership interest of ~ 6%.
Green Growth is not a related party to Aphria
As far as we know, Aphria does not own Green Growth shares, and none of the directors of Aphria is a member of the Board of Directors of Green Growth. As is well known to those involved in a small but growing cannabis industry, there are many overlapping informal relationships among the participants. Any informal relationship that may exist is separated from Green Growth business decisions, and Green Growth has no influence on related parties with Aphria, and Aphria has no influence on related parties on Green Growth.
For greater clarity, Aphria CEO Vic Neufeld, who is listed as one of Green Acre Capital’s many advisers through his Green Acre Opportunity Corp. foundation, has no influence on Green Growth. Green Acre has invested in several cannabis sites, and many are considered competitors to Aphria. There is nothing remarkable about Green Acre investing in another growing cannabis company, despite partial overlap with a small growing industry.
The most striking evidence of Green Growth’s lack of influence in the acquisition of Aphria is the fact that the Aphria board refused to participate and rejected the Green Growth premium offer, which made the deal much more complex and expensive.
Misinformation from market participants who are interested in themselves does not change the advantages of the Premium offer.
Some market participants are spreading misinformation related to Green Growth in order to destroy value in Afria. This misinformation was caused by the comments of those who have declared a short position in Afriya and whose trade will be hampered by the premium offer of Green Growth. Shareholders should be aware of facts related to a number of incorrect statements. In particular:
- Green growth confirmed that the Shottenstein family does not own shares of Aphria. Schottensteins applied for a license to grow, process, and check up at Aphria, Liberty Health Sciences, Ohio. The company was awarded a temporary license for treatment and prevention in Ohio. At a time when state law permits transfers, the joint venture will be dissolved. After filing an application in Ohio, Aphria lost interest in Liberty Health Sciences.
- Sean Dim is not a director of Green Growth Board of Directors.
Green Growth will present its offer for Aphria
Green Growth is ready to work with the Aphria board of directors to find ways to add value to shareholders of both companies. Green Growth is confident in funding of 300 million Canadian dollars at a price of 7.00 Canadian dollars per share. More than 10% of Aphria shareholders have already declared their support for the Offer. The board of directors of Aphria has two options: use Green Growth as a serious buyer to create real value or continue their endless analysis, which will lead to the destruction of shareholder value.
We look forward to further direct interaction with Aphria’s shareholders when we work together to create the world's leading cannabis company.
Questions? Need more help? Shareholders of Aphria should contact Kingsdale Advisors, the Information Agent and Depository of the Offer, by calling 1-866-851-3214 (toll-free number in North America) or by calling + 1-416-867-2272 (outside North America) or by email mail to: firstname.lastname@example.org,
Intention to make an offer
It is expected that the full information on the offer will be set out in the official offer and the circular takeover bid, which is expected to be sent to the shareholders of Aphria, a copy of which will be available at www.sedar.com under the profile of Aphria. Green Growth plans to officially launch the Offer and distribute it to Aphria shareholders in the coming weeks.
Readers are warned that Green Growth may decide not to make an offer if (i) Aphria implements or tries to apply defensive tactics in relation to the Offer, (ii) Green Growth discloses or its intended funding sources disclose or otherwise identify information suggesting that the business , Aphria's affairs, prospects or assets were impaired or disclosed, or otherwise identifies other undisclosed material adverse information relating to Aphria, or (iii) Aphria decides to join Green Growth to agree Ania conditions combined transaction and Aphria and Green Growth decide to: conduct the transaction using a different structure from a takeover bid, for example, the plan agreement. Accordingly, there can be no assurance that the Proposal will be made or that the final terms of the Proposal will be as set forth in this news release. In addition, the estimated use of parallel brokerage financing in the amount of 300 million Canadian dollars at a price per share in the amount of 7.00 Canadian dollars and the estimated support obligation in this regard depend on various contingencies and conditions, including the satisfactory completion of the usual payment diligence for both Aphria and Green Growth, an agreement on mutually acceptable final documentation and other customary obligations and conditions. No binding commitments of any kind have yet been made in this regard, and readers should not assume that any such commitment will be made until it is reflected in a mandatory document agreed upon by the intended funding sources, which cannot and should not be assumed or guaranteed.
The proposal will be implemented in accordance with the National Instrument 62-104 – Takeover Orders and the Issuer's Application and will depend on a number of usual conditions, including: (i) they will be deposited as part of the Offer and not withdrawn, at least 66 2/3 % of Aphria Shares outstanding (calculated on the basis of full dilution), with the exception of Green Growth Shares of Aphria; (ii) obtaining all approvals from the government, regulatory authorities, stock exchanges and third parties that Green Growth considers necessary or desirable in connection with the Offer; (iii) there was no legal prohibition on Green Growth making the Offer or accepting and paying Aphria for Athens; (iv) Aphria did not accept or implement a shareholder rights plan, dispose of any assets, incur any substantial debts, make any changes to its capital structure, or otherwise introduce or try to use defensive tactics; (v) there have been no significant adverse changes in the business, affairs, prospects or assets of Aphria; (v) Green Growth does not recognize that Aphria made a wrong statement about a material fact or did not indicate a material fact that must be made to any securities regulator; (vi) approval by Green Growth shareholders in accordance with the policy of the Canadian Stock Exchange; and (vii) the statutory minimum condition that 50% of the Aphria Shares were transferred to the Offer, with the exception of the Aphria Shares, which are owned or controlled by Green Growth (which cannot be waived). If the Proposal continues, Green Growth plans to convene a meeting of shareholders in the first quarter of 2019 to consider the decision to approve the issuance of Green Growth shares in connection with the Proposal. Green Growth expects that the Offer, when made, will remain open during the acceptance period of at least 105 days from the date of its circular takeover offer. The board of directors of Aphria can significantly reduce this minimum offer period, which will allow shareholders to receive the benefits of a Green Growth offer in just 35 days. Shareholders of the Company are advised to contact Aphria and urge management and the Board to allow the acquisition of Green Growth as soon as possible.
Green Growth Brands retained Canaccord Genuity as financial advisor, Norton Rose Fulbright Canada LLP as legal adviser, and Kingsdale Advisors as strategic shareholder, communications consultant and depositary.
About green growth brands
Green Growth brands are expected to dominate the cannabis and CBD markets with a portfolio of emotional brands that people like. Under the leadership of well-known retailer Peter Horvath, the GGB team is full of retail renegades with years of experience creating successful brands. Join the movement in GreenGrowthBrands.com,
Contact for media:
Executive Vice President, Communication Strategy
Al. address: email@example.com
CEO, Green Growth Brands Inc.
Al. address: PHorvath@greengrowthbrands.com
Caution in Forecast Information
This press release contains certain statements and information that constitute “forward-looking information” within the meaning of applicable securities laws. Wherever possible, forward-looking information can be defined using the expressions “looking for”, “expects”, “believes”, “estimates”, “will”, “plans”, “can”, “believes”, “foresees” ” purpose "and similar expressions (or negative of such expressions). The forward-looking statements are not historical facts, but reflect Green Growth's current expectations for future results or events and are based on information currently available. Promising events and circumstances discussed in this release , include, but are not limited to, (i) the Offer, the terms of the Offer and the estimated date of commencement of the Offer, (ii) the benefit of the Offer to both parties. Green growth and the Company, including the creation of wealth and value, and the synergies that can be created by the Offer, (iii) financing in the amount of US $ 300, its terms and the timing, (iv) expectations regarding ownership, management, exploitation and size of Green Growth after the completion of the Proposal, (v) future strategy and plans for Green Growth, including after the Proposal, and (vi) the cannabis industry and regulatory legal framework. Certain significant factors and assumptions were applied in the provision of this forward-looking information. All significant assumptions used in making forward-looking statements are based on Green Growth's knowledge of its activities and Aphria business, and in some cases on information provided by third parties, including public disclosures made by the Company. Certain material factors or assumptions include, but are not limited to, (i) current business conditions and expectations of future business conditions and trends affecting Green Growth and Aphria, including the US and Canadian economy, cannabis industry in Canada, the US and other places and In the capital markets, and (ii) that there have been no significant changes in the business, affairs, capital, prospects or assets of the Company, with the exception of cases publicly disclosed by the Company before the date of this Agreement. Все прогнозные заявления в этом пресс-релизе квалифицированы этими предостерегающими заявлениями. Green Growth считает, что ожидания, отраженные в прогнозных заявлениях, основаны на разумных предположениях; Тем не менее, Green Growth не может дать никаких гарантий, что фактические результаты или события будут реализованы к определенным указанным датам или вообще. Эти прогнозные заявления подвержены ряду рисков и неопределенностей, которые могут привести к тому, что фактические результаты или события будут существенно отличаться от текущих ожиданий. В дополнение к рискам, отмеченным в других разделах данного пресс-релиза, к существенным рискам относятся, помимо прочего, (i) риск того, что Предложение не будет начато или что условия для Предложения не будут выполнены или выполнены своевременно. или что транзакция не будет совершена по какой-либо другой причине, (ii) изменения в общих экономических условиях в Канаде, Соединенных Штатах и в других местах, (iii) изменения в условиях эксплуатации (включая изменения в нормативной среде), влияющие на каннабис (iv) колебания курсов валют и процентных ставок, наличие материалов и персонала, а также (v) способность Green Growth успешно интегрировать операции Green Growth и Aphria после завершения Предложения, в том числе возможность удерживать ключевой персонал Aphria и пересматривать определенные контракты для получения эффекта масштаба или другого синергизма. Поэтому читатели не должны чрезмерно полагаться на любую такую прогнозную информацию. Кроме того, прогнозная информация действует только на дату, когда такое заявление сделано. Green Growth не берет на себя никаких обязательств по публичному обновлению любого такого заявления или отражению новой информации или возникновению будущих событий или обстоятельств, за исключением случаев, предусмотренных законодательством о ценных бумагах. Эти прогнозные заявления сделаны на дату данного пресс-релиза. Предупреждение о соблюдении предлагаемого предложения
ЗЕЛЕНЫЙ РОСТ ЕЩЕ НЕ ЗАЯВИЛ ПРЕДЛОЖЕНИЕ, ЗАМЕЧАННОЕ ВЫШЕ. После вступления в силу предложения «Зеленый рост» доставит держателя акций в соответствии с применимыми законами Канады по ценным бумагам и подаст их в комиссию по ценным бумагам в США. , ЦИККУЛЯР ПРЕДУПРЕЖДАЮЩЕЙ ЗАЯВКИ БУДЕТ СОДЕРЖАТЬ ВАЖНУЮ ИНФОРМАЦИЮ О ПРЕДЛОЖЕНИИ И ДОЛЖНА БЫТЬ ПРОЧИТАНА В ЕГО ЗАПИСИ АКЦИОНЕРАМИ APHRIA. ПОСЛЕ ПРЕДУПРЕЖДЕНИЯ ПРЕДЛОЖЕНИЯ АКЦИОНЕРЫ APHRIA МОГУТ БЕСПЛАТНО ПОЛУЧИТЬ КОПИЮ СДЕЛАННЫХ ЗАЯВЛЕНИЙ ЗАДАЧИ С ОБЪЕДИНЕННЫМИ И РАЗЛИЧНЫМИ ДОКУМЕНТАМИ В СИСТЕМЕ АФРИИ ДЛЯ ЭЛЕКТРОНА В ЭЛЕКТРОРЕ. .COM. НАСТОЯЩЕЕ ОБЪЯВЛЕНИЕ ПРЕДОСТАВЛЯЕТСЯ ТОЛЬКО ДЛЯ ИНФОРМАЦИОННЫХ ЦЕЛЕЙ, И НЕ СОЗДАЕТ И НЕ ФОРМУРУЕТ ЧАСТЬ ЛЮБОГО ПРЕДЛОЖЕНИЯ КУПИТЬ ИЛИ ПРИГЛАШАТЬ К ПРОДАЖЕ, ИНЫМ ОБРАЗОМ ИЛИ ПОДПИСАТЬСЯ НА ЛЮБУЮ БЕЗОПАСНОСТЬ. ПРЕДЛОЖЕНИЕ БУДЕТ СДЕЛАНО ТОЛЬКО ДЛЯ ФОРМАЛЬНОГО ПРЕДЛОЖЕНИЯ И ПОЛУЧИТЕ КРУГЛЫЙ Тендер. ПРЕДЛОЖЕНИЕ НЕ БУДЕТ СДЕЛАНО, НИКОГДА НЕ ПРИНИМАЕТСЯ ОТ ДЕПОЗИТА ЦЕННЫХ БУМАГ ОТ ЧЕЛОВЕКА, ЛЮБОЙ ЮРИСДИКЦИИ, КОТОРАЯ ИХ ПРИНЯТИЕ ИЛИ ПРИНЯТИЕ НЕ БУДЕТ СООТВЕТСТВОВАТЬ ЗАКОНАМ ТАКОЙ ЮРИСДИКЦИИ. ОДНАКО, ЗЕЛЕНЫЙ РОСТ МОЖЕТ, В ЕГО ЕДИНСТВЕННОМ РАСПОЛОЖЕНИИ, ПРИНЯТЬ ТАКОЕ ДЕЙСТВИЕ, ЧТО ЭТО НЕОБХОДИМО РАСШИРЯТЬ ПРЕДЛОЖЕНИЕ В ЛЮБОЙ ТАКОЙ ЮРИСДИКЦИИ,
Дополнительная информация для инвесторов США
Данное сообщение не представляет собой предложение о покупке или предложение о продаже каких-либо ценных бумаг. Это сообщение относится к потенциальной сделке с Aphria, предложенной Green Growth, которая может стать предметом регистрационного заявления, поданного в Комиссию по ценным бумагам и биржам США («SEC»). Этот материал не является заменой какого-либо проспекта или другого документа, который Green Growth подаст в SEC в отношении предлагаемой транзакции, если согласованная транзакция будет согласована между Green Growth и Aphria, или если предложение начато, или для любого другого документа, который Green Growth может подать. с SEC и отправить Aphria акционеров в связи с предполагаемой сделкой. В настоящее время тендерные или обменные предложения по простым акциям Aphria не начались. В связи с предложенной сделкой Green Growth может подать в SEC документы Оферты, в том числе заявление о регистрации. Любые окончательные документы Оферты будут отправлены по почте акционерам Aphria. ИНВЕСТОРЫ И ДЕРЖАТЕЛИ БЕЗОПАСНОСТИ АФРИИ США ПРИЗЫВАЮТ ПРОЧИТАТЬ ЭТИ И ДРУГИЕ ДОКУМЕНТЫ, КОТОРЫЕ МОГУТ БЫТЬ ПРЕДОСТАВЛЕНЫ В СЕКУНДУ В СЕКУНДЕ ЕСЛИ ЕСЛИ, И КОГДА ОНИ ДОСТУПНЫ, ПОТОМУ ЧТО ОНИ СОДЕРЖИТ ВАЖНУЮ ИНФОРМАЦИЮ. Инвесторы и держатели ценных бумаг смогут получить бесплатные копии этих документов (если и когда они будут доступны) и других документов, поданных в SEC компанией Green Growth, через веб-сайт SEC по адресу http://www.sec.gov.
1 Казначейский метод.
2 Включает Хендерсона, где Green Growth имеет безотзывную возможность приобрести все свои членские интересы.
3 Казначейский метод.