Green Growth Archives - Green Market Report

Debra BorchardtMay 24, 2019



SLANG Worldwide Inc. (CSE:SLNG) elected to exercise its right under the warrant indenture governing the common share purchase warrants of the company issued on July 23, 2018, to accelerate the expiry date of the Warrants. Slang may accelerate the expiry date of the Warrants if, at any time prior to July 21, 2020, the closing trading price of the common shares of the company on the Canadian Securities Exchange exceeds $1.75 for a period of at least 20 consecutive trading days. As of the close of markets on May 23, 2019, the closing trading price of the Common Shares on the CSE exceeded $1.75 per Common Share for more than 20 consecutive trading days.

As of May 23, 2019, a total of 9,101,927 of the 13,436,005 originally issued Warrants had yet to be exercised. Each Warrant is exercisable to acquire one Common Share at an exercise price of $1.15. Consequently, if all Warrants are exercised, proceeds to the Company will total $10,467,216.05.


The Flowr Corporation (TSXV: FLWR) (OTC: FLWPF)  announced that the Nasdaq Stock Market has approved the Company’s application to have its common shares listed on the Nasdaq Capital Market. A trading date will be announced once the company’s Form 40-F registration statement becomes effective with the SEC. The common shares will be listed on the Nasdaq under the symbol “FLWR”. The Company’s common shares listed on the TSX Venture Exchange will continue to trade under the symbol FLWR.

Green Growth Brands

 Green Growth Brands, Inc. (CSE: GGB) (OTCQB: GGBXF) approved the grant of an aggregate of 595,000 restricted share units under the company’s equity incentive plan to certain of its employees. The RSUs will be granted to the RSU Recipients as compensation for their services to the company and as an incentive mechanism to foster the interest of such persons in the long-term success of the company.

True Leaf Brands

True Leaf Medicine International Ltd. (CSE: MJ) (OTCQX: TRLFF)  announced today that, effective immediately, the Company is officially changing its corporate name to True Leaf Brands Inc. 

StaffDecember 31, 2018


The hostile bid for Aphria Inc. (APHA) by Green Growth Brands Ltd., also known as Xanthic Biopharma Inc. (CSE: GGB) caused the stock to finally move higher rising over 12% to trade at $6.26 after a month of heavy selling. Aphria has faced a storm of negative attacks by the short seller Hindenburg Investment Research (HIR)  which questioned the company’s Latin American investments.

When HIR issued a report detailing the issues it had with Aphria’s investments as a justification to short the stock, the stock fell. This is a typical move by short sellers. They issue a highly negative report on the company it has shorted and if it gets some attention and the stock falls then the goal is accomplished. Supporters of Aphria fought back refuting parts of the report, but the stock continued to slide as wary shareholders decided it was best to sell. Aphria said it was also going to address HIR’s report in detail, but so far it hasn’t.

Aphria said in a statement, “The (HIR) report makes reference to the Company’s LATAM acquisition which closed on September 27, 2018. In connection with this transaction, the Board of Directors of Aphria confirmed that it received financial advice and a fairness opinion from a reputable firm that the consideration to be offered by Aphria in respect of the transaction was fair, from a financial point of view to Aphria and its shareholders.”

The company went on to add, “Investors should exercise caution in relying on the misrepresentations and distortions contained in the report and recognize that, by their own admission, Hindenburg Research “…stands to realize significant gains in the event that the price of any stock covered herein declines.”

On Thursday after the market close, Green Growth announced it would an acquisition that would “Provide 1.5714 common shares of Green Growth representing premiums of 45.5% over Aphria’s closing price on the Toronto Stock Exchange on December 24, 2018, and 46.0% over Aphria’s volume weighted average price on the TSX for the last 10 trading days ended December 24, 2018.  The offer values Aphria at approximately C$2.8 billion (US$2.1 billion) based on a valuation of C$7.00 per share for Green Growth Shares.” It didn’t take long for the market to point out that Green Growth’s shares were trading at C$7 and even though the share price did rise on Friday, it only went to C$5.11.

Aphria addressed this in its statement saying, “Aphria shareholders should be aware that the value of GGB’s per-share offer is based on a hypothetical valuation of its own shares, with no relation to the current price.”

Irwin Simon, the new Chair, said, “While we appreciate GGB’s interest in the value we have created at Aphria and our significant growth prospects, their proposal falls short of rewarding our shareholders for participating in such a transaction.  Further, the proposed offer is quite risky given GGB’s condition to complete a brokered financing at a price that is more than double the recent average of their share price, as a key term to the proposal.”

It’s worth noting that Simon has just replaced the CEO Vic Neufeld as Chair as of December 27, right after the bid was made public. Aphria issued a press release removing Neufeld from his role as Chairman but retaining him as CEO. He will also remain on the board as a Director. Neufeld has been identified by HIR as part of the problems at Aphria.

Simon added, “The Board has determined that the GGB proposal, as it currently stands, significantly undervalues the company.  Aphria has a tremendous market opportunity as a leader in the sector and a strategic vision to meet those opportunities.  Our focus is to realize that value for the benefit of all our shareholders.”

The deal has been criticized by HIR, which was expected since it caused the stock to go higher, which is exactly what HIR doesn’t want to happen. However, other cannabis industry investors have criticized the deal as well. Most point to the wished for valuation of C$7 for GGB shares. The deal has been characterized as “hostile,” but it is hardly hostile if the two companies share executives on advisory boards and have shared investors.

Whether the two companies combine or not will be up to the remaining shareholders. Green Growth’s CEO Peter Horvath says he has 10% of the support of Aphria’s shareholders. If this was just a publicity stunt (as some believe) to gin up both company’s stock prices, it worked.



StaffNovember 5, 2018


It’s time for your Daily Hit of cannabis financial news for November 5, 2018.

On The Site

Aurora Cannabis

Aurora Cannabis Inc.  (ACB) has made a $20 million investment in the emerging adult-use cannabis company Choom Holdings Inc. (OTCQB: CHOOF). The conversion price is approximately C$1.25 per share. Aurora has also secured the ability to purchase up to 40% of the company at a price of C$2.75 a share.

In addition to the investment in the company’s cannabis products, Choom is also developing a chain of retail stores with a “strong focus on elevated customer experiences.” In a company statement, Choom said it has the rights to open 45 retail stores across Western Canada, granted these stores are subject to local approvals. So far, 45 applications have been submitted, along with 27 development permits and 18 building permits received from various towns.

Golden Leaf Holdings

Golden Leaf Holdings Ltd.  (OTCQB: GLDFF) announced financial results for the fiscal third quarter ending September 30, 2018. The company delivered quarterly revenues of US$5.1 million for Q3 2018, compared to US$3.1 million for Q3 2017. The net loss for Q3 2018 was $5.5 million or $0.01 per share loss, compared with a net loss of $3.2 million or $0.01 per share loss, for Q3 2017. Net loss for Q3 2018 increased primarily attributed to the effect of the changes in fair value of non-cash assets and debt, specifically, biological assets and warrant liability.

Golden Leaf also announced it was merging with Terra Tech as the CEO William Simpson will step down as CEO to become President and Derek Peterson will take over as CEO.

In Other News

Green Growth

Green Growth Brands closed on an additional private placement investment of approximately C$30.5 million with a strategic partner, at a post-transaction consolidation price of C$2.00 per share. According to the statement, the subscriber further intends to exercise approximately C$24.5 million of common share purchase warrants of GGB issued under the private placement, with each exercisable on the same consolidation price of C$2.00 per share. The subscriber will be required to make payment of the C$24.5 million exercise price within 30 days. Assuming exercise of and full payment for the warrants, the total funds raised by GGB following the announcement of the Transaction will exceed C$140 million.

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