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, 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.
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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