Aphria, Headed for the Toronto Stock Exchange, Raises $50mm

Aphria (TSXV: APH) (OTC: APHQF) announced this morning that it will be uplisting to the Toronto Stock Exchange within the next three months upon the meeting of certain requirements. Aphria will become the third Canadian licensed producer to achieve the milestone, joining Canopy Growth (TSX: WEED) (OTC: TWMJF) and CanniMed Therapeutics (TSX: CMED) (OTC: CMMDF).

Graduating to the TSX represents yet another important milestone for Aphria as we continue our successful journey as one of Canada’s leading cannabis companies. This achievement comes on the heels of many other important milestones we’ve reached: first public LP to report consecutive positive quarterly operating results. First public LP to report consecutive quarters with net profits. First public LP to license its cultivation intellectual property. Diversification with non-cultivation assets. Low cost producer status.

vic neufeld AphriaVic Neufeld, CEO of Aphria

The company also announced a “bought deal” underwritten by Clarus Securities, raising $50mm. Aphria will be selling 10mm shares at $5.00, a 9.1% discount to Friday’s closing price of $5.50. The deal, which is the second largest of the four announced deals in 2017 by Canadian LPs, is the company’s first since November, when it closed a 10.0625m share offering priced at $4, raising over $40mm. Almost $700mm, not including subsequent warrant exercises, has been raised since late 2015, when the Liberal Party took control of Parliament.

Canadian Capital Raises 020617

The deal, which could increase by $7.5mm if the the underwriters exercise an overallotment option of 1.5mm shares, will help fund Aphria’s capacity expansion primarily, with a portion earmarked for strategic investments.

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Published by Alan Brochstein, CFA
Alan Brochstein, CFA
Based 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. Contact Alan: Twitter | Facebook | LinkedIn | Email

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