Aphria inks deal to secure CA$100 million for M&As, expansion

One of Canada’s largest medical marijuana producers introduced a stock-purchase deal to increase 100 million Canadian dollars ($77.7 million) in capital, which it intends to apply to the development of latest manufacturing amenities globally and in Canada.

To date in fiscal 2017, Aphria has raised CA$237 million, CFO Carl Merton advised Marijuana Business Daily. This doesn’t embrace the newest deal, as it’ll shut in 2018.

Leamington, Ontario-based Aphria additionally stated in a information launch it has given the underwriters concerned within the transaction the choice to buy a further CA$15 million value of firm inventory, which might deliver the full to $CA115 million.

Flush with cash, Aphria stated it’s evaluating strategic acquisitions and investments.

The firm – traded on the Toronto Stock Exchange beneath the image APH – has been stockpiling money this yr to fund speedy expansion forward of adult-use legalization in Canada.

The firm’s different current raises embrace:

  • Up to CA$92 million in October for the event of infrastructure and the expansion of its geographic footprint in Canada.
  • Up to CA$111 million in April to broaden Aphria’s manufacturing capability.
  • Up to CA$57 million in February, 80% of which was allotted to facility expansion and the remaining towards strategic investments.

The underwriters within the newest deal agreed to buy on a bought-deal foundation 7.27 million Aphria shares for CA$13.75 apiece, giving the transaction a worth of CA$100 million.

The providing is predicted to shut Jan. 9.

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Categories: Briefs, Canada Marijuana News, Marijuana Cultivation, Marijuana Stocks & Public Companies, Sales, Funding & Banking News


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