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US retailer plans hostile takeover of marijuana maker Leamington

(Photo courtesy of Aphria)

The American cannabis retailer is planning a hostile takeover of Aphria Inc. based in Leamington.

According to Bloomberg Canada, Ohio-based Columbus, Green Growth Brands Ltd., has discussed a friendly proposal with the Aphria board of directors, but has now announced its intention to submit a hostile takeover bid, which estimates Canadian marijuana producer at 2.8 billion Canadian dollars . Green Growth intends to offer $ 11 per share for all Aphria shares, which is 46% more than the company's closing price on Monday.

“We are confident that the substantial premium we offer and the opportunity to participate in the growth of a stronger combined company are so convincing that we accept our offer directly to Aphria shareholders,” said Peter Horvath, CEO of Green Growth. in a statement.

Green Growth produces beauty and health products using key ingredients derived from cannabis.

Aphria’s share price fell about 37 percent last month after Quintessential Capital Management and Hindenburg Research accused the company of overstateing the assets of insiders. Afriya called the report a malicious and mercenary attempt to make a profit by manipulating the prices of its shares at the expense of the company's shareholders.

-With files from paul pedro

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