Aphria Books $2.35mm Loss on Canabo Medical Shares

Canadian LP Aphria (TSX: APH) (OTC: APHQF), which purchased a 6mm share stake in Canabo Medical Corp (TSXV: CMM) (OTC: CAMDF) at $1.40 per share in December, has sharply reduced its exposure, selling 2.5mm shares at $0.46 on May 10th:

Aphria Canabo Sale 051017

Source: Sedi.ca

The company had previously sold 500K shares at $0.70 on March 15th, but this occurred before the expiration of a restricted holding period, and it repurchased shares on the following day at $0.74.

Aphria, which realized a loss of $2.35mm on the sale, has an extensive portfolio of investments in publicly-traded companies, several of which have increased in value. Canabo is the only investment where the company is required to disclose its transactions due to the ownership exceeding 10%.

Canabo operates several 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.

Aphria Canabo 051017

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ab-byline-ncvBased in Houston, Alan leverages his experience as founder of online communities 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV.

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