Editor’s note: On March 16th, Aphria filed on SEDI that it had bought back the 500K shares at $0.74 on March 13th
Just thirteen weeks after agreeing to pay $1.40 for 6mm shares of Canabo Medical Corp (TSXV: CMM) (OTC: CAMDF), Aphria (TSXV: APH) (OTC: APHQF) has sold 500K shares at $0.70, realizing a loss of $350K on 8.33% of its position. The shares appear to have been sold in advance of a four-month hold requirement, given the close on 12/23/16.
Canabo operates 12 Cannabinoid Medical Clinics in Canada, working with patients on only a physician-referral basis in order to evaluate for the suitability, prescribing and monitoring of cannabinoid treatments for a variety of illnesses. At the time of investment, Aphria described it as strategic.
When we detailed the original investment, we pointed to the extraordinary premium paid by Aphria, as the $1.40 purchase price was 36% higher than the close of $1.03 the day prior the announcement of the deal. Additionally, Canabo had sold 7mm shares at $0.50 in September before going public in November.
We have written recently about Aphria’s extensive investment portfolio, and several of its investments have increased significantly in value, and the realized loss on its investment in Canabo may be an offset against unannounced realized gains from another transaction.
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