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As a shareholder of Aphria, you are being asked to accept a lower value for your shares then on the market (currently around C$14) in return to gain ownership of GGB. It is counter intuitive to a degree but for many who believe in Aphria and further believe it is undervalued if the deal goes through they will have a greater number of shares of the combined company than they started with of Aphria alone - for 100% of APHA plus 100% of GGB. If this is effectively a reverse takeover as some speculate thrn is it truly a reverse takeunder? If Aphria shareholders gain control of the proposed combined company, then perhaps the proper context is to view that discount being offered for Aphria shares as the premium for acquiring GGB.
I would not be surprised to see one or more potential suitors to present themselves (white knights?) or for a shareholder rights motion (poison pill) to come to fruition. With different lenses (viewing the transaction as a takeover offer by APHA of GGB) one can then filter out the noise of alleged wrong doing and conspiracy theories tied to the lower share price being offered compared to the market price because what is the difference between paying a premium for a company in an all stock takeover or discounting your own shares in the same transaction? There is an equivalency there that the hobbyists miss.
Those looking to manipulate the share price may be tossing out these theories and the well-meaning hobbyists found on social media, boards, and subreddit fall for it hook line and sinker and spread the word as gospel perhaps for a few moments in the spotlight. Throwing a spanner in the works of these opportunists scurrying for their 15 seconds of fame and add followers with their conspiracy theories is that Aphria has formally rejected the takeover offer.
But as an investor, this may be a foretelling of things to come. There are other players in this that no one talks about – the Federal Governments of Canada and the US as well as the various relevant regulatory bodies.
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