Green Growth reaffirms commitment to acquire Aphria as Charlotte's Web hires Coke exec In this edition of "Rising High," Green Growth Brands reaffirmed its commitment to launch an offer to acquire all Aphria (APHA) shares as Charlotte’s Web (CWBHF) appointed former Coca-Cola (KO) executive Eugenio Mendez as chief growth officer.
GREEN GROWTH REAFFIRMS COMMITMENT TO ACQUIRE APHRIA: On Monday, Green Growth Brands reaffirmed its commitment to launch an offer to purchase all shares of Aphria . "Since we announced our intention to launch the takeover of Aphria we have seen two things. First, Aphria shareholders are welcoming a 45%+ premium offer because they understand the significant value that can be unleashed by our combined teams, assets and geographies. Second, a real interest in the market to understand Green Growth and our valuation," Green Growth chief executive officer Peter Horvath said. "When investors consider our trailing revenue, recent license wins in Nevada, and a buildout in the new market of Massachusetts they agree that it is not a question of if Green Growth reaches C$7.00 per share, but when. We understand that there are some in the market who want to focus on destroying value at Aphria, but we are committed to creating it." The company said it is "confident in the certainty of a C$300M financing at C$7.00 per share. Over 10% of Aphria's shareholders have already indicated their support of the offer." It added that "Aphria's board has two options: Engage with Green Growth as a serious buyer to create real value or continue their endless analysis which will result in the destruction of shareholder value.”
CHARLOTTE’S WEB NAMES FORMER COKE EXEC AS CGO: Charlotte's Web Holdings announced Thursday that Eugenio Mendez has joined the company in the newly formed role of CGO. Mendez comes from the Coca-Cola Company, where he served as vice president, global marketing of water, enhanced water and sport drinks. As the company's CGO, he will lead the company's business development, marketing and sales functions. The new leadership addition is the first of several appointments that will be made to support Charlotte's Web's growth and a CEO transition is planned in 2019.
TILT HOLDINGS TO ACQUIRE JUPITER RESEARCH: TILT Holdings announced Thursday it has signed a definitive agreement to acquire Jupiter Research, an inhalation and vaporization technology company, for $210M to bolster TILT’s hardware offerings. Jupiter Research produces power supplies and cartridges specifically designed for cannabis oil in the market today, featuring exclusively ceramic CCELL technology. Jupiter’s team partners with over 700 brands and cannabis retailers across the U.S., Canada, Israel and the EU and has generated approximately $77M in 2018 revenue with an estimated 20% EBIDTA margin.
TGOD SIGNS SUBLICENSE WITH ENWAVE, TILRAY: EnWave announced Thursday that it and Tilray (TLRY) signed a royalty-bearing commercial sublicense with The Green Organic Dutchman. The agreement grants TGOD the right to use EnWave's proprietary Radiant Energy Vacuum dehydration technology to dry organic cannabis in its Canadian operations. Under the terms of the license, EnWave and Tilray will share royalties from TGOD's use of EnWave's REV technology on an undisclosed basis. TGOD has signed an equipment purchase agreement and submitted a purchase order to EnWave for a large-scale 60kW commercial REV machine to initiate commercial production.
OTHER CANNABIS STOCKS: Other publicly traded companies in the space include Aurora Cannabis (ACB), CV Sciences (CVSI), CannTrust Holdings (CNTTF), Cronos Group (CRON), General Cannabis (CANN), Canopy Growth (CGC), Innovative Industrial Properties (IIPR), India Globalization Capital (IGC), ICC International Cannabis (KNHBF), Biome Grow (ORTFD), MediPharm Labs (MLCPF), Indiva (NDVAF), OrganiGram (OGRMF), KushCo (KSHB), MedMen Enterprises (MMNFF) and Elixinol Global (ELLXF).
“Rising High" is The Fly's recurring series focused on cannabis stock news.
