Aphria announces closing of Broken Coast Cannabis acquisition
LEAMINGTON, ON, Feb. 13, 2018 /CNW/ – Aphria Inc. (“Aphria” or the “Company”) (TSX: APH and US OTC: APHQF) today announced that it has closed the previously announced acquisition (the “Transaction”) of Broken Coast Cannabis Inc. (“Broken Coast”), a leading premium cannabis producer located in British Columbia, acquiring 99.86% of all of the issued and outstanding Class A common shares.
The closing was effected pursuant to the terms of a definitive share purchase agreement (the “SPA”) dated the date hereof by and among the Company and the vendors party thereto (collectively, the “Vendors”). Pursuant to the SPA, the Company has acquired the Class A common shares held by the Vendors for an aggregate purchase price of approximately CAN$217 million, subject to customary adjustments. The purchase price has been satisfied by Aphria issuing to the Vendors today an aggregate of 14,373,675 common shares in the capital of the Company.
We’re excited to complete this transaction and add one of Canada’s most sought after premium brands to our portfolio. Broken Coast brings award-winning production of small-batch, premium-quality “B.C. bud” and a shared focus on production costs and profitability.
Vic Neufeld, Chief Executive Officer of Aphria
When combined with Aphria’s experience in scaling and supply chain management, this acquisition firmly establishes our position as a Canadian leader in premium indoor cannabis production.
Broken Coast operates a fully licensed, purpose-built, indoor cannabis production facility on Vancouver Island. As part of the Transaction, Aphria approved the immediate commencement of Broken Coast’s Phase IV expansion (the “Expansion”), which will increase the facility’s annual capacity from 4,500 kg per year to 10,500 kg per year. The Expansion is anticipated to be completed by late summer 2018, with first product sale occurring in early 2019.
The Expansion will raise Aphria’s forecasted annual production to 230,000 kg, anticipated by February 2019, while also providing Aphria with geographic diversification, a cross-Canada distribution platform, and access to over 40,000 medical patients.
For further details on the Transaction, see the Company’s press release dated January 15, 2018, available on SEDAR at www.sedar.com.
We Have a Good Thing Growing.
Aphria Inc., one of Canada’s lowest cost producers, produces, supplies and sells medical cannabis. Located in Leamington, Ontario, the greenhouse capital of Canada, Aphria is truly powered by sunlight, allowing for the most natural growing conditions available. Aphria is committed to providing pharma-grade medical cannabis, superior patient care while balancing patient economics and returns to shareholders.