Aleafia Health (TSX: ALEF) is rumored to be placing a hostile bid for Canntrust Holdings (TSX: TRST) (NYSE: CTST). The news was disseminated across a number of media outlets before being quickly pulled. Full details were expected to be released this morning based on sources.
Before being pulled from media outlets, it was reported that Aleafia would be paying approximately $4 per share in an all stock transaction. In all, its estimated that each Canntrust share would be translated to approximately 3.6 shares of Aleafia should shareholders approve of the offer. The transaction would be valued at $605 million.
Aleafia Health and Canntrust have a history of working together. The two parties signed a supply agreement late last year, which was to see Aleafia supply Canntrust with up to 15,000 KG of dried cannabis throughout 2019. The first shipment occurred in early January. Then, in May the duo announced a formal relationship wherein Aleafia would be supplied with certain genetics from Canntrust Holdings. Canntrust was to receive right of first refusal for purchasing the dried cannabis once it had been harvested and processed at Aleafia’s Scugog, Ontario facility.
While its not known when full details of the potential hostile bid will take place, it was originally anticipated to be announced this morning.
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