Canadian licensed producer Aphria (TSXV: APH) (OTC: APHQF) announced a C$35mm capital raise this morning, marking the largest single offering by a public company in the cannabis industry to date. The deal pushes the running total raised by Canadian licensed producers over the past thirteen months to over $313mm, a figure that doesn’t include subsequent warrant exercises:
Clarus Securities will lead a group of underwriters selling 8.75mm shares at C$4.00, with the potential exercise of an over-allotment option that would increase the deal by 1.3125mm shares, raising C$40.25mm. The deal is expected to close by 11/29 , just before the company concludes its fiscal second quarter.
Aphria ended its first quarter with over $53mm in cash and has a significant number of warrants outstanding that could bring in an additional $24mm. With 111mm fully-diluted shares approximately, the company’s market cap exceeded $500mm at the $4.58 close on 11/10. The stock has appreciated 258% in 2016: