Welcome to this month’s case studies. All companies referenced throughout the magazine are not intended as investment advice but rather to bring an awareness of different companies that may be invested in. Any third party images fall within fair dealing under Canadian Copyright law.
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In est Long and Prosper
Our case study this month will be to briefly discuss the recently announced acquisition of Emblem Corp (TSXV:EMC) by Aleafia Health Inc (TSXV:ALEF). But first, the recent hostile takeover bid of Aphria Inc (TSX:APHA) by Green Growth Brands (CSE:GGB). The bid has many contingencies such as a $700M raise at $7 a share for a company that is currently trading under $5 a share. Because some may believe a bidding war may erupt some could conclude that this is an attempt to temporarily bolster the share price of GGB to secure the capital raise all the while knowing the current bid in its current form may not the successful one. In other words, it this truly a sincere offer that one reasonably expects to close as is? Time will tell.
To you, our readers, this comes as no surprise as we have been publishing regular consistent content for quite some time that there will be an increase in M&A and particularly amongst the mid sized and smaller size Licensed Producers and ancillary companies.
Emblem has been featured in CannaInvestor Magazine more than once and I personally have written a fair amount about Aleafia including a case study. The Financial Post published an article recently discussing this merger (as well as a bit on consolidation curve 101 - but let’s go back to our issue last month (early December release date) where I responded to an interview question directed at myself with the following ….
So to me that question asked so often is an easy question and in fact every month I give the easy answer: Service over Self-Interest. It is hard for others to be critical when they are taking payments from companies to be promotional. How can they be positive about company “C” when they are taking payments from companies “A”, “B”, and “D”?
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