Aphria Liquidates $39 Million GA Opportunities Promissory Note

Aphria Inc (TSX: APHA) (NYSE: APHA) announced this morning at the bottom of a news release that it has finally resolved the debt owed to the firm by GA Opportunities Corp under a promissory note. The company has liquidated the $39 million in debt associated with the promissory note for total proceeds of $26 million.

Details were slim on the debt liquidation in relation to what exactly took place. It’s unclear if the firm ultimately renegotiated with Green Growth Brands (CSE: GGB) and its principals in relation to the secured note, or of it managed to sell the debt for $0.66 on the dollar to a different party whom will ultimately secure the funds from GGB.

The promissory note was issued by Green Growth to that of GA Opportunities, to which Aphria was an investor, in relation to the settlement of a failed takeover offer the company made for Aphria following a heavily damaging short report issued in December 2018. Under the terms of the $89 million settlement agreement, Green Growth was to pay $50 million in cash to repurchase certain shares for cancellation, as well as issue a $39 million promissory note which has long been past due.

Notably, a security interest was issued by Green Growth Brands on the promissory note, as well as on the share purchase agreement as a whole. However, given the current financial position of the company it was largely believed that there would be no actual payment that occurred on the promissory note, and little to actually enforce security on.

Aphria last traded at $3.60 on the NYSE.


Information for this briefing was found via Sedar and Aphria Inc. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

Horvath Leaves Role As CEO At Green Growth Brands

Green Growth Brands (CSE: GGB) released a corporate update this evening, identifying that chief executive...

Thursday, March 19, 2020, 06:04:49 PM

Aphria To Compensate Aleafia Health $29.1 Million For Failed Supply Agreement

Aleafia Health (TSX: AH) is getting paid. Specifically, it’s getting paid by Aphria Inc (TSX:...

Thursday, June 25, 2020, 09:47:25 AM

Green Growth Brands Terminates Arrangement with MXY Holdings

Green Growth Brands (CSE: GGB) announced this morning that it is walking from the previously...

Wednesday, December 18, 2019, 10:00:46 AM

Aphria Diamond: The Timeline of Development

Aphria Inc (TSX: APHA) (NYSE: APHA) investors have long awaited the announcement from Health Canada...

Wednesday, October 9, 2019, 07:00:24 AM

Green Growth Brands Returns to the Trough Again, This Time for US$127 Million

Green Growth Brands (CSE: GGB) has become a cash incinerator. On July 31, it closed...

Thursday, August 15, 2019, 07:00:32 AM