Aphria wants to ‘get Canada right’ before exploring U.S. options – RICH TV LIVE – MAY 5, 2019 – THANSK TO BNN BLOOMBERG FOR THIS VIDEO
Oh to potentially buy acreage holdings but canopies rival áfreeá not so eager to jump across the border just yes bnn bloomberg’s david george kosh just talked to the company’s chairman owen simon and so a free early on put some toes in the water in the states and then they pulled back because of the legal complications exactly so tell us what what the relative
You chairman is saying right now well the company is right now involved in a 90 days strategic review of its entire operations and we’re intends to go does it want to focus on the year on europe following its acquisition of some licenses in germany does it want to tie up with a potential partner to to create these beverages or other random consumer products for the
For the cannabis market or just you know do they want to go and make a make a big step into the us market that you know similar to what canopy has done and right now i mean they’re having these discussions but when i talked to mr. simonet at the company’s offices here in toronto earlier this week he said that they just want to make sure that they get canada right
And this is a company that is who really had a tumultuous several month period following that short sale report in december and these allegations of overpaying and insiders self-dealing that led to the osc requesting that they really ate these assets and later taking a 50 million dollar right down on the value of those latin american operations so right now since
When simon joined the company back in december as the independent chair as well as its interim ceo back at the end of march first he’s really looking to restructure the company clean it up a bit focusing on bringing its new automated assembly line back into into practice improving corporate governance making sure that the company is ready for the second wave of
Canada cannabis legalization here in canada before it really looks to make a plan to the us and of course you have a piece now i think it just went live on our website david that’s because simon told you the governance here the short sale report that’s been the elephant in the room buster exactly i mean he really stated to me that there has been this black cloud
Over the company since the the short sale report from quintessential and hindenburg research hit the wires you know after december 2nd when that report came out everyone wanted to run away from the company and now since simon has come back the phones are ringing again there’s there’s potential interest in where this company is going what they intend on doing from
From the corporate governance standpoint andy mr. simon is brought on to blue chip canadian law firms dla piper and fasiqun to advise on board members they recently held sort of a board summit where the entire company leading executives from the company came and and discussed the entire operations and strategy behind what they’re doing so the board is now fully
Educated on on the company’s practices and strategy going forward and as well when it comes to conflicts of interest if anyone from the board fails to disclose any potential conflicts of interest with any potential future m&a those board members will be dismissed it’s interesting as well i see in your interview the subject of boost linton’s canopy groats plant
And potentially by acreage in the states for more than 3 billion simon said you know that deal i i wouldn’t necessarily go into a deal like that exactly i think he’s really cautious and and worried about committing to a partner in the us at this point because what this deal in mr. simon’s eyes shows is that you’re pretty much married to a company and you don’t
Really necessarily have any control over what that company could do within the 90 months that you actually have the option to acquire it so you know he says it’s like you know getting married in a certain period of time no matter if i love them or not you know i mean it’s kind of a interesting metaphor but he really makes it clear that like you you can’t really
Work with this company despite having the option to buy so you kind of he wants to make sure that when they do go into the u.s. it is with the right partner that they do have some control over as well as you know what is the right strategy that they hope to nail down this year for 2020 okay we will look about peace on your website be at blm bloomberg dossier or
Our website so it’s your personal but thanks very much david
Transcribed from video
Aphria wants to 'get Canada right' before exploring U.S. options By RICH TV LIVE
