The strange story of Green Growth Brands Inc.'s hostile takeover of Aphria has come to an end.
GGB has ended its unsolicited takeover of Aphria with an agreement to accelerate the expiration of its offer on Aphria shares.
As part of an agreement reached with Aphria, Green Growth Brands will repurchase 27.3 million common shares held by GA Opportunities, which cancels a 13 percent position and eliminates the second largest block of its outstanding share. It will pay approximately $66 million at a significantly discounted price.
Green Growth also has agreed to sell its position of 3 million shares of Aphria.
The takeover involved some unusual connections between the two companies. GA Opportunities is a fund sponsored by Green Acre Capital, which lists Aphria CEO Vic Neufeld on its board of advisors. In addition, Aphria is an investor in a Green Acre Capital fund, which makes it a shareholder in GGB.
“We are bringing our offer to an end on good terms with Aphria and are excited to turn our focus to our CBD personal care and retail cannabis businesses," Green Growth Brands CEO Peter Horvath said in a statement. "We are actively continuing to review other partnerships and M&A opportunities to accelerate the build out of our company."
The two companies also have agreed to a 12-month standstill period and will enter discussion involving a potential commercial arrangement between parties.