Canadian licensed producers (LPs) continue to raise capital aggressively as the MMPR program takes off and in front of legalization. Aphria (TSXV: APH) (OTC: APHQF) announced its second deal since Justin Trudeau and the Liberal Party won the elections last October. This one, at $25mm, represents the largest public financing to date in the sector. Mettrum (TSXV: MT) (OTC: MQTRF) raised $34.5mm in a private placement in 2014 before it was listed on the TSX Venture. Mettrum recently raised $8.625mm in a public offering, while other LPs raising capital have included Aurora Cannabis (CSE: ACB) (OTC: ACBFF), Canopy Growth (TSX: CGC) (OTC: TWMJF), Organigram (TSXV: OGI) (OTC: OGRMF) and Supreme Pharma (CSE: SL) (OTC: SPRWF).
Aphria will be selling 12.5mm shares to group of underwriters led by Clarus Securities to be offered to investors at $2.00. The underwriters have the option to increase the deal by up to 1.875mm shares within 30 days of closing, which is expected to be on or about August 18th.
Aphria trading was halted about a half-hour before the close, with the last trade at $2.39, below an all-time high of $2.59 set earlier this week. The offering at $2.00 represents a 16.3% discount to the last trade but a 53.8% premium to its last financing in November, where it raised $11.5mm by selling units, which included one share and a 1/2 warrant with an exercise price at $1.75, at $1.30.
