Aphria strengthens balance sheet with negotiated debt reduction
- Completes accretive transaction to repurchase its convertible senior notes
- Net cash position increases by $127.5 million ($91 million USD)
LEAMINGTON, ON, May 8, 2020 /PRNewswire/ – Aphria Inc. (“Aphria” or the “Company”) (TSX: APHA and NYSE: APHA), a leading global cannabis company, today announced that it entered into privately negotiated agreements with a limited number of holders outside of Canada of its convertible senior notes (“Notes”) to repurchase an aggregate of approximately $127.5 million ($90.8 million USD) principal amount of Notes for approximately 18.7 million of common shares and approximately $2.9 million ($2.1 million USD) in cash for accrued and unpaid interest.
Effectively, the Company agreed to repurchase a portion of its Notes at a 25% discount to their face value, using shares issued at a 31% premium to Aphria’s most recent closing market price (which is equivalent to a conversion price of $4.84 USD per share).
The purpose of the transaction was to reduce the Company’s debt and eliminate $6.7 million ($4.8 million USD) in annual cash interest costs.
This transaction strengthens the Company’s balance sheet by increasing its net cash position from $36.3 million CAD at its February 29, 2020 quarter-end to $163.8 million, on a pro-forma basis as at that date.
This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful. The exchanges are exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended, and upon an exemption from the prospectus requirement afforded by OSC Rule 72-503 as promulgated under the Securities Act (Ontario).
We Have A Good Thing Growing
Aphria Inc. is a leading global cannabis company driven by an unrelenting commitment to our people, the planet, product quality and innovation. Headquartered in Leamington, Ontario – the greenhouse capital of Canada – Aphria Inc. has been setting the standard for the low-cost production of high-quality cannabis at scale, grown in the most natural conditions possible. Focusing on untapped opportunities and backed by the latest technologies, Aphria Inc. is committed to bringing breakthrough innovation to the global cannabis market. The Company’s portfolio of brands is grounded in expertly researched consumer insights designed to meet the needs of every consumer segment. Rooted in our founders’ multi-generational expertise in commercial agriculture, Aphria Inc. drives sustainable long-term shareholder value through a diversified approach to innovation, strategic partnerships and global expansion.
For more information, visit: aphriainc.com