February 6, 2019 / 11:37 AM / 9 months ago

BUZZ-Aphria: Falls on rejecting Green Growth Brands' "inadequate" bid

** Aphria’s U.S.-listed shares down ~4 pct premarket on rejecting U.S. cannabis retailer Green Growth Brands’ hostile bid

** The Canadian cannabis producer says offer is inadequate, significantly undervalued and “clearly timed their offer to exploit recent lows for Aphria”

** Aphria board chairman says GGB is asking Aphria investors to accept a substantial discount on their shares, a delisting from both TSX and NYSE

** “In return, GGB offers shares in an illiquid company with limited operating history, minimal assets and no track record in the cannabis industry,” Chairman says

** GGB’s first acquisition bid on Dec. 27 valued Aphria at C$11/shr and its revised offer on Jan. 23 valued Aphria at C$9.40/shr

** Aphria’s TSX shares have traded at the revised offer price since that bid and its shares top C$11 only after a recent broad-based rally among weed cos

** Since the first offer, Aphria’s TSX shares have surged 86 pct to close at C$14.07 on Tuesday; GGB shares have risen ~18 pct (Reporting by Savio D’Souza)

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