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“The proposed offer is quite risky given GGB’s condition to complete a brokered financing at a price that is more than double the recent average of their share price as a key term to the proposal,” said Simon.

Nevertheless, Green Growth Brands said within the next couple weeks it intends to make a formal offer for Aphria, valuing the marijuana producer at C$2.8 billion.

The Ohio company said Aphria shareholders will receive 1.5714 Green Growth shares for each of their shares. It equates to a premium of 45.5 per cent over Aphria’s closing price of $6.19 on the Toronto Stock Exchange on Dec. 24.

Aphria shareholders would receive a value of $11 per share — well above Thursday’s closing price of $7.57.

The company’s stock jumped to $8.65 a share at market opening on Friday morning, eventually ending the trading day at $8.52 and valuing the company at $1.88 billion. Even with that boost, the value of Aphria shares remains at less than half what they were on Oct. 17, the day recreational marijuana became legal in Canada.

The GGB takeover deal is still subject to a number of conditions should it ever reach a vote by shareholders of both companies.

“The board has determined that the GGB proposal, as it currently stands, significantly undervalues the company,” Irwin said. “Aphria has a tremendous market opportunity as a leader in the sector and a strategic vision to meet those opportunities. Our focus is to realize that value for the benefit of all our shareholders.”