Lost your password?

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: 

While we continue to focus on the rapid expansion of GGB, the opportunity to repurchase these shares well below the current market price immediately and directly increased shareholder value.

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: 

The participants in this offering included early-stage strategic investors in the company, and we are gratified by the confidence they continue to show at what amounts to a C$7.00 per common share conversion price.

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.  

About Author

Ty Arthur

Ty Arthur

Ty Arthur has spent the last decade of his journalism career covering everything from cutting-edge tech to local news through outlets such as the Houston Chronicle. He has focused on the counterculture aspects of society, from marijuana legalization to underground music through Metalunderground.com and rapidly changing trends in the entertainment industry. He lives in the cold, dark north with his wife and son.

See author's posts

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Grizzle hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.