Green Growth’s hostile takeover most likely won’t happen
Last year, cannabis company Green Growth Brands announced plans to try and institute a hostile takeover of Aphria Inc. At the time, it was willing to give Aphria shareholders fair consideration if they got behind the deal, but Aphria balked. It balked against several times over the past couple of months as the subject has resurfaced, and the company’s new chairman has basically told Green Growth to get stuffed.
Aphria Chairman Irwin Simon says that he plans on taking the company to revenue of around $746 million by the end of next year, up from the approximate $150 million currently seen. He adds that he will help the company achieve margins of at least 40%, which will be possible by increasing production at the company’s facilities in Canada. These are now only operating at about 18% of their capacity.
Aphria received a license earlier this month to expand its Aphria One facility and is in the process of seeking approval for a cultivation license for its Aphria Diamond campus. Combined, they will give the company the ability to produce as much as 255,000kg of cannabis annually, 215,000kg more than currently possible.
Simon asserts, “There’s so much low-hanging fruit right now in our Canadian business. There are so many opportunities to get to profitability in our Canadian business.”
Regarding the potential Green Growth takeover, Simon states, “Shareholders are not going to accept it. It was not a real offer. When you’re wounded, companies will come after you and take advantage of you.”
Green Growth will just have to find another target.