(Photo courtesy of Aphria)

Share via: Facebook

Twitter

LinkedIn

More

A U.S. cannabis retailer is planning to a hostile takeover of Leamington-based company Aphria Inc.

According to a report from Bloomberg Canada, Columbus, Ohio-based Green Growth Brands Ltd. discussed a friendly offer with Aphria’s board, but has now announced its intention to submit the hostile takeover bid that values the Canadian marijuana producer at around $2.8 billion CDN. Green Growth intends to offer $11 per share in an all-stock bid for Aphria, which is a 46 per cent premium over the company’s closing price on Monday.

“We are confident that the significant premium we are offering and the opportunity to participate in the growth of a stronger, combined company are so compelling that we are taking our offer directly to Aphria’s shareholders,” Peter Horvath, chief executive officer of Green Growth said in the statement.

Green Growth makes beauty and wellness products using key ingredients derived from cannabis.

Aphria’s share price fell about 37 per cent in the last month, after Quintessential Capital Management and Hindenburg Research accused the company of inflating prices for assets held by insiders. Aphria called the report a malicious and self-serving attempt to profit by manipulating its stock price at the expense of the company’s shareholders.

Bloomberg also reported on Thursday that Aphria chairman and CEO Vic Neufeld is stepping down as chairman, while continuing as CEO. Irwin Simon is the new chairman.

-With files from Paul Pedro