CEO of Canadian cannabis giant Aphria out amid Brief attack, hostile takeover bid

CEO of Canadian cannabis giant Aphria out amid Brief attack, hostile takeover bid

The chief executive officer of one of the largest cannabis firms in North America plans to depart as the business continues to fend off a short assault and separate hostile takeover.

Aphria CEO Vic Neufeld and co-founder Cole Cacciavillani will transition from their executive roles over the coming months, the company announced Friday.

“Succession is your plan,” Neufeld wrote in a news release. “Cole and I have informed the board, and they’ve agreed, that we’ll start the transition process immediately, and at the proper timewe will both resign from executive positions at Aphria. ”

The company has been under siege since a report in early December claimed the company overpaid for resources from the Caribbean and Latin America and that the resources are secretly controlled by “insiders” and ultimately worthless.

Aphria, based in Leamington, Ontario, called the claims “malicious” and promised that a line-by-line rebuttal.

Almost immediately after an all-stock supply of 2.8 billion Canadian dollar ($2.1 billion) was made, Aphria’s board determined that it “significantly undervalues” the provider.

An independent committee of directors was made to look at the proposal and any formal offer received.

Also Friday, Aphria released second-quarter financials showing net revenue rose to CA$21.7 million, a 63% increase.

Aphria forecasts that annualized harvest will reach 255,000 kilograms (56,2179 pounds) by the end of 2019, compared with 35,000 kilograms today.

Aphria trades on the NYSE under the ticker symbol APHA.

To register for our weekly Canada marijuana business newsletter, click here.

Published at Fri, 11 Jan 2019 21:47:02 +0000

Posted in: News

Comments are closed.