One-Time Aphria Suitor Sells CBD Unit Amid Financial Strain

Green Growth Brands Inc., once a suitor of Aphria Inc., is selling its CBD business and restructuring debt amid what the company is calling “serious financial difficulty,” Bloomberg News reported. In a further sign of the problems plaguing the cannabis industry, Green Growth said it will sell its CBD business to BRN Group Inc., a cannabis brand-management company, so it can focus on its marijuana operations. No terms were given. Shares tumbled as much as 42%, the most ever, to 25 cents in Toronto on Tuesday. Green Growth had previously positioned itself as a CBD retailer, touting its mall kiosks and its partnerships with the likes of Abercrombie & Fitch Co., DSW shoe stores and Authentic Brands Group. It also made a splashy attempt to enter the Canadian cannabis industry with a C$2.4 billion hostile bid for Aphria in January 2019 after a short-seller attack triggered a plunge that erased more than half of Aphria’s market value. Read more

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