In this market news, Aphria Inc. (TSX:APHA) (NYSE:APHA), one of the Canadian marijuana stocks, said its Colombian subsidiary will help teach doctors in that country about medical uses for cannabis
SmallCapPower | January 7, 2019: Aphria Inc. (TSX:APHA) (NYSE:APHA), one of the Canadian cannabis stocks, Wednesday announced that its Colombian subsidiary, Colcanna SAS, has signed an exclusive agreement with the Federación Médica Colombiana (FMC), a national guild that oversees the ethical exercise of the medical profession in Colombia, to jointly develop an academic curriculum on the medicinal use of cannabis.
FMC has nearly 2,000 affiliated doctors and a database of more than 70,000 medical professionals that access the organization for research and educational resources, including through a virtual platform that offers certified courses on a range of subjects. The medical cannabis curriculum developed by Colcanna and FMC will be made accessible on this platform and will be supported by scientific events for the medical community.
“Education in the medical community is critical for sustaining the advancement of medical cannabis in Colombia,” said Gabriel Meneses, Vice President, LATAM & Caribbean at Aphria. “Colcanna is proud to make this exclusive arrangement with Federación Médica Colombiana, which will offer doctors and medical professionals across the country a credible and trusted source of information and training on medical cannabis.”
Since closing at $21.70 on September 10, 2018, shares of Aphria plunged more than 78% to a 2018 low of $4.76 less than two months later, which can be mainly attributed to a short-seller report by Hindenburg Research accusing Aphria of purchasing its Latin American assets at inflated prices for the benefit of company executives and insiders.
Since then, Aphria stock has bounced back nearly 70% to its current price of $8.09. After the market closed on December 27, 2018, Green Growth Brands Ltd. (CSE:GGB) announced an unsolicited, all-stock takeover bid for Aphria that it claims would value APHA at C$11 per share. Aphria responded by stating that the proposed bid is approximately 23% below APHA’s average share price, asserting that the value of GGB’s per-share offer is based on a hypothetical valuation of its own shares, with no relation to the current price. Green Growth said in its bid that it expects to complete a concurrent brokered financing of C$300 million at C$7 per share, which is a significant premium GGB’s current price of $5 per share.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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