Aphria Slips To Loss In Q3; To Accelerate Expiration Of Green Growth’s Bid
Canadian cannabis company Aphria Inc. (APHA) on Monday reported a net loss for the third quarter and also said it has entered into a series of transactions to accelerate the expiry date of the hostile takeover bid launched by Green Growth Brands Inc. The company’s shares lost more than 14 percent in the regular trading session.
The company’s net loss for the third quarter was C$108.2 million or C$0.43 per share, compared to net income of C$12.9 million or C$0.08 per share in the previous-year quarter.
The latest quarter’s results include non-cash impairments of C$58 million, including a C$50 million goodwill impairment on the company’s Latin American assets, and additional non-operating losses of C$30 million.
Excluding the non-cash impairment charges, adjusted net loss for the quarter was C$50.2 million or C$0.20 per share.
However, net revenue for the quarter surged 617 percent to C$73.6 million from C$10.3 million in the prior-year quarter.
The increase in revenue in the quarter was driven by C$57.6 million of distribution revenue from CC Pharma and ABP. Net revenue includes over 1,329 kilogram equivalents sold for the Canadian adult-use market and 1,274 kilogram equivalents for medical cannabis sales.
Aphria also said it has entered into a series of transactions that will accelerate the expiry date of the hostile takeover offer launched by U.S.-based marijuana company Green Growth Brands Inc. or GGB to April 25, 2019.
The company continues to recommend that its shareholders reject the GGB offer and not tender their Aphria shares to the offer. Aphria also said it will terminate the arrangements with GA Opportunities Corp. or GAOC for consideration of C$89.0 million.
Irwin Simon, Aphria’s Chairman and Interim Chief Executive Officer said, “We are very pleased to move forward with this favorable resolution as we continue to focus on the long-term growth of our leading cannabis business. We plan to use the $89.0 million in proceeds from the transaction to fund our strategic global expansion initiatives.”
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