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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.