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.
To enroll for our weekly Canada marijuana enterprise publication, click on right here.