Two weeks after Canopy Growth Corp. announced an expansion into Latin America, rival cannabis grower Aphria Inc. has announced a “proposed acquisition” worth roughly $200 million that would see it acquire two companies in South America and take a sizeable stake in a Caribbean marijuana producer.
The assets—in Colombia, Argentina and Jamaica—are owned or are in the process of being acquired by Aphria’s sister company Scythian Biosciences Corp., and held by a Scythian subsidiary LATAM Holdings Inc.
In return for LATAM Holdings, Aphria will issue Scythian 15.7 million shares, “for aggregate transaction consideration of $193 million … at a deemed share price of $12.31,” according to a press release.
That equates to 6.3 per cent of Aprhia’s outstanding shares, calculated on a non-diluted basis, and would make Scythian the largest single Aphria shareholder.
Top Image: © Zerophoto | Adobe Stock