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Green Growth's Hostile Bid On Aphria Is Simply A Publicity Stunt (Seeking Alpha)
Source: Seeking Alpha
Green Growth's Hostile Bid On Aphria Is Simply A Publicity Stunt
Dec. 28, 2018 9:04 AM ET
Summary
• U.S. single-state operator Green Growth announced a hostile bid for beleaguered Canadian cannabis company Aphria.
• Based on Green Growth's Thursday closing share price of C$4.98, its offer is worth C$7.83 which means a 3.4% premium over Aphria closing price.
• Using Green Growth's 10-day and 20-day VWAP, its offer would actually have a negative premium of 20% and 26% to Aphria's closing price.
• Green Growth is the most overvalued U.S. cannabis stock we've covered and its stock had miraculously risen ~50% between December 14 and 27.
• We believe this hostile bid is just a publicity stunt committed by Green Growth management and has no chance of succeeding.
-snip-
Dec. 28, 2018 9:04 AM ET
Summary
• U.S. single-state operator Green Growth announced a hostile bid for beleaguered Canadian cannabis company Aphria.
• Based on Green Growth's Thursday closing share price of C$4.98, its offer is worth C$7.83 which means a 3.4% premium over Aphria closing price.
• Using Green Growth's 10-day and 20-day VWAP, its offer would actually have a negative premium of 20% and 26% to Aphria's closing price.
• Green Growth is the most overvalued U.S. cannabis stock we've covered and its stock had miraculously risen ~50% between December 14 and 27.
• We believe this hostile bid is just a publicity stunt committed by Green Growth management and has no chance of succeeding.
-snip-
Read more: https://seekingalpha.com/article/4230520-green-growths-hostile-bid-aphria-simply-publicity-stunt