Aphria Inc. rejects hostile takeover bid from Ohio-based Green Growth Brands

Date Closed

April 25, 2019

Lead Office


In December 2018, Ohio-based cannabis corporation Green Growth Brands launched an unsolicited takeover bid to acquire Aphria Inc., based in Ontario. Green Growth offered 1.5714 shares for each Aphria share, valuing Aphria at roughly C$2.8 billion. Aphria released a statement dated December 28, 2018 that Green Growth's bid significantly undervalued the company.

A second hostile bid with a similar valuation was launched by Green Growth in January 2019. In February 2019, Aphria's board unanimously rejected the bid and encouraged shareholders to do the same.

Scotia Capital, which was retained by Aphria as its exclusive financial advisor during the bid process, produced a written opinion to the board of directors stating that the hostile bid was inadequate and was not in the best interest of Aphria shareholders. In April 2019, Aphria announced that the bid failed to meet the statutory minimum tender condition and had expired.

Scotia Capital is the capital markets branch of the Bank of Nova Scotia, one of Canada's largest Schedule 1 banks.

McCarthy Tétrault advised Scotia Capital with a team led by Bob Richardson that included Shane D'Souza.