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.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Green Growth Brands Terminates Nearly Entire Staff

Last Thursday, cannabis and CBD retailer Green Growth Brands (CSE: GGB) issued a news release,...

Sunday, March 22, 2020, 11:58:20 AM

Aphria Diamond Receives Cultivation License

It’s finally happened. Aphra Inc’s (TSX: APHA) (NYSE: APHA) Aphria Diamond facility has finally received...

Friday, November 1, 2019, 05:23:47 PM

Green Growth Brands Conducts Raise After Completing Share Buyback

Green Growth Brands (CSE: GGB) investors had an eyebrow raising moment yesterday after the close,...

Wednesday, July 24, 2019, 07:00:21 AM

Aphria: Canaccord, PI Financial Reiterate Ratings And Price Targets After Q1 Financials

Yesterday, Aphria Inc (TSX: APHA) (NASDAQ: APHA) released its fiscal first quarter results. Net revenue...

Friday, October 16, 2020, 10:09:53 AM

Aphria Shareholders Approve Merger, Tilray Pushes Vote To April 30

Aphria Inc (TSX: APHA) (NASDAQ: APHA) has seen its shareholders approve the proposed merger with...

Thursday, April 15, 2021, 07:16:00 AM