Green Growth Brands, Inc. (CSE: GGB; OTCQB: GGBXF) is capping the week before Victoria Day with a flurry of activity involving stock buybacks, securing financing, and acquiring a new cultivation facility.
Following the expiration of a declined offer to purchase competitor Aphria Inc, Green Growth has now repurchased and cancelled 27.3 million shares previously held by GA Opportunities Corp.
Those Green Growth shares were bought back at a price of $3.26 per common share, at a discount over the stock’s current trading price of $4.67 today. The $89 million buyback sees Green Growth re-acquiring 13% of the company’s outstanding shares.
Discussing the completion of the repurchase transaction, Green Growth’s Chief Executive Officer Peter Horvath had this to say:
Following that buyback this morning, Green Growth also announced raising $45.5 million in funds through a private placement of convertible debt. The proceeds raised through this round of financing will go towards continued expansion on both the CBD and cannabis fronts.
On the CBD side, Green Growth is working towards a goal of opening 100 Seventh Sense Botanical Therapy shops by the end of 2019. On the THC end of the market, the company just launched the CAMP cannabis brand, which seeks to appeal to active lifestyle cannabis users interested in outdoor experiences.
Stating the company is looking towards funding new acquisitions and partnerships for further growth, Green Growth CEO Horvath commented on the debenture financing deal:
In addition to the stock buyback and financing news, Green Growth today announced the closing of a cultivation facility acquisition. Located in Pahrump, Nevada, the greenhouse was purchased from Panorama WON LLC and Wellness Orchards of Nevada LLC for $13.3 million.
The closing of that deal now sees Green Growth running two cultivation facilities to increase supply for wholesale output.