Proactiveinvestors USA & Canada Aphria https://ca.proactiveinvestors.com Proactiveinvestors USA & Canada Aphria RSS feed en Mon, 21 Jan 2019 12:34:32 -0500 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Aphria stock soars after fiscal 2Q revenue more than doubles ]]> https://ca.proactiveinvestors.com/companies/news/212410/aphria-stock-soars-after-fiscal-2q-revenue-more-than-doubles-212410.html Shares in Aphria Inc (NYSE:APHA) shot up Friday after the Canadian medical marijuana producer posted a 63% increase in sequential revenue growth for the fiscal second quarter.

The company, which recently received an all-stock hostile bid from US cannabis retailer Green Growth Brands Ltd, said total revenue more than doubled to C$21.7 million (US$16.4 million).

READ: Aphria rises after completing acquisition of German medical cannabis distributor

The company made an adjusted gross profit of C$10.2 million from initial sales to the Canadian adult-use market.

Aphria sold 3,408.9 kilograms of cannabis, up 92% from the fiscal first quarter.

Headquartered in Leamington, Ontario, Aphria produces and sells medical cannabis in Canada and internationally.

The company disclosed that co-founder Cole Cacciavillani and CEO Vic Neufeld would step down from their positions in the coming months.

“Annualized harvest expected to increase to 255,000 kilograms by the end of calendar 2019,” said the company in a statement.

Strong balance sheet

The company said it closed the acquisition of “key operations and licenses” in Latin America and the Caribbean region. It also established strategic alliances in the region to expand the company's medical cannabis operations and distribution.

Aphria ended the fiscal second quarter with a strong balance sheet and liquidity, including C$152.1 million of cash and C$32.7 million of liquid marketable securities, to fund announced Canadian and International growth and facilities expansion.

“Part IV and V expansions of Aphria One awaiting Health Canada approval; application for cultivation licence at Aphria Diamond submitted and also awaiting Health Canada pre-cultivation inspection,” said the company.

Aphria shares climbed 5.7% in pre-market trading in New York on Friday.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Fri, 11 Jan 2019 07:55:00 -0500 https://ca.proactiveinvestors.com/companies/news/212410/aphria-stock-soars-after-fiscal-2q-revenue-more-than-doubles-212410.html
<![CDATA[News - Aphria rises after completing acquisition of German medical cannabis distributor ]]> https://ca.proactiveinvestors.com/companies/news/212238/aphria-rises-after-completing-acquisition-of-german-medical-cannabis-distributor-212238.html Aphria Inc (NYSE:APHA) rose Wednesday after announcing that it has completed its acquisition of CC Pharma GmbH, a distributor of drug products including medical cannabis to more than 13,000 pharmacies in Germany and throughout Europe.

Leamington, Ontario-based paid Aphria paid €18.92 million (US$22 million) in cash to the former shareholders of CC Pharma with an earn-out multiple on future earnings before interest, taxes, depreciation and amortization of as much as another €23.5 million (US$27 million) if certain milestones are met.

READ: Aphria's Colombian subsidiary Colcanna partners with Colombian medical federation

Shares of Aphria advanced $0.16, or 2.5%, to US$6.49 in New York’s premarket trading.

“As one of the most promising medical cannabis markets in the world, Germany is a top strategic priority for Aphria,” Vic Neufeld, CEO of Aphria, said in a press release. “With today’s acquisition of CC Pharma, Aphria is creating a German and ultimately pan-European platform that brings together demand, supply and distribution.” 

Founded in 1999, CC Pharma has more than 230 employees and offices in Germany, Denmark, Poland and the Czech Republic. The company holds 318 active German and 692 active European Union pharmaceutical licenses, Aphria said in a press release.

CC Pharma operates a production, repackaging and labeling facility at its headquarters in Densborn, Germany. In 2018, the company generated revenue of about €262 million (US$300 million), with Ebitda of about €10.5 million (US$12 million). 

Aphria is also active in South America. Earlier this month, it announced that its Colombian subsidiary, Colcanna SAS, is partnering with the Colombian Medical Federation, which oversees the ethics of the medical profession, to develop an academic curriculum on the medicinal use of cannabis.

Contact Dennis Fitzgerald at dennis@proactiveinvestors.com

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Wed, 09 Jan 2019 07:46:00 -0500 https://ca.proactiveinvestors.com/companies/news/212238/aphria-rises-after-completing-acquisition-of-german-medical-cannabis-distributor-212238.html
<![CDATA[News - Aphria's Colombian subsidiary Colcanna partners with Colombian Medical Federation ]]> https://ca.proactiveinvestors.com/companies/news/211849/aphria-s-colombian-subsidiary-colcanna-partners-with-colombian-medical-federation-211849.html Aphria Inc (TSX:APHA) (NYSE:APHA) announced Wednesday that its Colombian subsidiary, Colcanna SAS is partnering with the Federación Médica Colombiana, a national guild that oversees the ethics of the medical profession in Colombia, to develop an academic curriculum on the medicinal use of cannabis.

The new guidance will offer Colombia’s doctors and medical professionals a credible source of information on medical cannabis. The Federación Médica Colombiana (FMC) has nearly 2,000 affiliated doctors as well as more than 70,000 medical professionals who access the organization's materials for research and education.

READ: Aphria reports higher 1Q fiscal first quarter revenue and looks ahead to cannabis legalization in Canada

The medical cannabis curriculum developed by Colcanna and FMC will be made accessible on FMC’s online platform which offers courses on a range of subjects.

“Education in the medical community is critical for sustaining the advancement of medical cannabis in Colombia,” said Gabriel Meneses, vice-president for Latin America and the Caribbean with Aphria in a statement.

Headquartered in Leamington, Ontario, Aphria produces and sells medical cannabis in Canada and internationally.

Aphria shares were down slightly in pre-market trading in New York on Wednesday, slipping by 0.7% to hit $5.65.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Wed, 02 Jan 2019 07:56:00 -0500 https://ca.proactiveinvestors.com/companies/news/211849/aphria-s-colombian-subsidiary-colcanna-partners-with-colombian-medical-federation-211849.html
<![CDATA[News - Aphria says Green Growth Brands' takeover bid undervalues cannabis company ]]> https://ca.proactiveinvestors.com/companies/news/211808/aphria-says-green-growth-brands--takeover-bid-undervalues-cannabis-company-211808.html Aphria Inc (TSX:APH) (OTCQB:APHQF) said Monday that a takeover bid from Green Growth Brands Ltd (CSE:GGB) undermines the Canadian cannabis producer. 

Green Growth’s all-stock offer would value Aphria at around C$2.1 billion, or about C$11 per share.

READ: Aphria widens reach in Argentina after striking deal with authorities in province of Jujuy

Aphria’s shares dipped more than 6% to US$5.86 in Monday pre-market trading. 

“We believe our offer will create value for both Aphria and Green Growth shareholders," Green Growth CEO Peter Horvath said in a press release. "We are confident that the significant premium we are offering and the opportunity to participate in the growth of a stronger, combined company are so compelling that we are taking our offer directly to Aphria’s shareholders.” 

Horvath, a retail veteran and former executive at American Eagle Outfitters Inc (NYSE:AEO) and DSW Inc (NYSE:DSW), looks to combine his experience with Aphria’s cannabis expertise.

Green Growth recently began trading on the Canadian Securities Exchange following a reverse takeover of Xanthic Biopharma Inc.

Aphria chair Irwin Simon said that the deal “significantly undervalues” the company and expressed concern about Green Growth’s brokered financing of C$300 million.

“The proposed offer is quite risky given GGB’s condition to complete a brokered financing at a price that is more than double the recent average of their share price, as a key term to the proposal,” said Simon in the company’s response.

Aphria’s board said it has set up an independent committee of directors to review the proposal.

 

Contact Lenore Fedow at lenore@proactiveinvestors.com

Follow her on Twitter: @LenoreMariee

 

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Mon, 31 Dec 2018 08:54:00 -0500 https://ca.proactiveinvestors.com/companies/news/211808/aphria-says-green-growth-brands--takeover-bid-undervalues-cannabis-company-211808.html
<![CDATA[News - Aphria widens reach in Argentina after striking deal with authorities in province of Jujuy ]]> https://ca.proactiveinvestors.com/companies/news/211589/aphria-widens-reach-in-argentina-after-striking-deal-with-authorities-in-province-of-jujuy-211589.html Aphria Inc (NYSE:APHA), the Canadian cannabis company, is set to expand its cultivation operations in Argentina to the province of Jujuy after signing a letter of intent with the Argentinian state-owned Cannabis Avatãra Sociedad del Estado (CANNAVA) that strikes a cooperation agreement there.

Under the deal’s terms, Aphria’s subsidiary ABP will establish a facility in Jujuy for the cultivation and processing of cannabis as well as for the manufacturing of cannabis derivative products, including cannabis oil.

READ: Aphria and Rapid Dose Therapeutics team up to take on the German cannabis market

The details of the financial terms haven’t been disclosed.

"Aphria is strategically positioned to be among the first companies to produce locally, and eventually commercialize its products in Argentina at much lower cost," said Gabriel Meneses, vice-president for Latin America and Caribbean with Aphria. "We are proud of the relationship we have built with the Province of Jujuy after months of discussions and planning, and thankful for their support."

READ: Aphria reports higher 1Q fiscal first quarter revenue and looks ahead to cannabis legalization in Canada

CANNAVA was established by the Argentine government to advance the cultivation and industrialization of cannabis sativa for medical and scientific use.

As the legislation in Argentina evolves, Aphria will be in a position to scale its production in Jujuy and offer greater access there to medicinal cannabis.

Aphria shares popped by 3.7% to hit $5.60 before the opening bell on Thursday.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Thu, 20 Dec 2018 09:11:00 -0500 https://ca.proactiveinvestors.com/companies/news/211589/aphria-widens-reach-in-argentina-after-striking-deal-with-authorities-in-province-of-jujuy-211589.html
<![CDATA[News - Aphria and Rapid Dose Therapeutics team up to take on the German cannabis market ]]> https://ca.proactiveinvestors.com/companies/news/211411/aphria-and-rapid-dose-therapeutics-team-up-to-take-on-the-german-cannabis-market-211411.html Aprhia Inc (CVE:APHA) (NYSE:APHA) is building on its previous agreement with Rapid Dose Therapeutics Inc (CSE:DOSE) to bring RDT’s QuickStrip delivery technology to the German cannabis market.

"Germany is one of the most sought-after cannabis markets today, and Aphria continues to take a comprehensive approach to ensure a leading presence in the country as the opportunity evolves," said Jakob Ripshtein, president of Aphria, in the company’s press release.

Shares of Aphria jumped more than 4% to US$5.65 in Tuesday pre-market trading while Rapid Dose Therapeutics shares have not yet begun trading.

READ: Biome Grow subsidiary Highland Grow gets sales authorization from Health Canada

The companies inked an agreement in November, granting Aphria exclusive global preferred rights to license, manufacture, distribute and sell the technology.

RDT’s QuickStrip technology delivers cannabis via oral fast-dissolving strips, offering a smoke-free alternative to cannabis consumers.

Aphria expects to produce and distribute CBD-only Quickstrips to the German market by spring 2019.

As per the agreement, Aphria has the option to tack on future international markets.

 

Contact Lenore Fedow at lenore@proactiveinvestors.com

Follow her on Twitter: @LenoreMariee

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Tue, 18 Dec 2018 08:26:00 -0500 https://ca.proactiveinvestors.com/companies/news/211411/aphria-and-rapid-dose-therapeutics-team-up-to-take-on-the-german-cannabis-market-211411.html
<![CDATA[News - Aphria expands Latin American medical cannabis presence with entry into Paraguay ]]> https://ca.proactiveinvestors.com/companies/news/211078/aphria-expands-latin-american-medical-cannabis-presence-with-entry-into-paraguay-211078.html Canadian cannabis company Aphria Inc (TSX:APH) (OTCQB:APHQF) said Wednesday that it has signed a Letter of Intent with Paraguayan pharma company Insumos Medicos SA, for the exclusive supply and distribution of medical cannabis in Paraguay.

“Latin America continues to represent an important growth opportunity within the global medical cannabis industry, and we are excited to be among the first to enter the rapidly emerging market in Paraguay,” said Aphria president Jakob Ripshtein.

READ: Aphria forms special committee to review its Latin American acquisitions

“Our strategic partner, Insumos, is well-positioned to establish a leading presence for the company’s products throughout the country,” he added.

In September, Aphria closed the acquisition of LATAM Holdings Inc from Scythian Biosciences (CSE:SCYB).

On Wednesday, the company backed its Latin American operations and strategy and reiterated its confidence in the process leading to its C$280 million worth of Latin American acquisitions.

“Aphria will continue to expand its footprint in the most strategic markets in Latin America and around the world through its diversified approach to innovation, partnerships and expansion,” emphasized Ripshtein.

Aphria has supply agreements with every province in Canada and the Yukon Territory, ensuring access to Aphria products for 99.8% of the Canadian population. It has launched a large portfolio of adult-use brands: Solei Sungrown Cannabis, RIFF, Good Supply, and Goodfields.

The stock was up nearly 4%  in premarket trade Wednesday but pared its gains after the bell to $11.57 in the OTC Markets.

 

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Wed, 12 Dec 2018 10:21:00 -0500 https://ca.proactiveinvestors.com/companies/news/211078/aphria-expands-latin-american-medical-cannabis-presence-with-entry-into-paraguay-211078.html
<![CDATA[News - Aphria forms special committee to review its Latin American acquisitions ]]> https://ca.proactiveinvestors.com/companies/news/210700/aphria-forms-special-committee-to-review-its-latin-american-acquisitions-210700.html The board of Canadian cannabis company Aphria Inc (TSX:APHA) (NYSE:APHA) has appointed a special committee of independent directors to review its takeover of LATAM Holdings in a bid to address “inaccurate and misleading” accusations by short-sellers.

The move comes after shares of Aphria tumbled this week in response to a report by the short-seller Quintessential Capital Management, which calls Aphria a “black hole” and takes aim at Aphria’s recent C$280 million worth of Latin American acquisitions.

In Thursday's morning trading session, Aphria shares kept sliding, falling by another 13.5% to $3.90.

READ: Canadian medical marijuana company Aphria pegs C$225mln war chest to build new facilities

Released on Monday, the report by Quintessential Capital Management and Hindenburg Research says Aphria’s Latin American acquisitions “raise major red flags” and that the transactions appear to be largely worthless based on extensive "on-the-ground" research.

The Quintessential analysts went so far as to accuse Aphria of being "a shell game with a cannabis business on the side". 

"We are of the strong opinion that Aphria is part of a scheme orchestrated by a network of insiders to divert funds away from shareholders into their own pockets," the analysts wrote.

On Thursday, Aphria again backed its Latin American operations and strategy and reiterated its confidence in the process leading to its acquisitions there.

But in the face of the criticism by the short sellers, Aphria is undertaking a comprehensive review, led by John Herhalt, Shlomo Bibas and Tom Looney. Herhalt, the lead independent director and chair of the audit committee, will chair the committee.

“We are committed to protecting our shareholders and restoring market confidence by confirming all the facts through an independent process to rebut innuendo and deception,” said Vic Neufeld, Aphria’s CEO in a statement.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

 

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Thu, 06 Dec 2018 09:11:00 -0500 https://ca.proactiveinvestors.com/companies/news/210700/aphria-forms-special-committee-to-review-its-latin-american-acquisitions-210700.html
<![CDATA[News - Tetra Bio-Pharma wins $7.1M in financing from fellow cannabis company Aphria ]]> https://ca.proactiveinvestors.com/companies/news/210406/tetra-bio-pharma-wins-71m-in-financing-from-fellow-cannabis-company-aphria-210406.html Tetra Bio-Pharma Inc (CVE:TBP) has won financing from its partner and fellow Canadian cannabis company Aphria (TSX:APHA) (NYSE:APHA) and closed a private share placement drawing in proceeds of C$7.1 million.

The Aphria investment will allow Tetra to rachet up its drug development activities over the coming months.

Under the private placement, Tetra issued 6.9 million units to Aphria, with each unit being comprised of one Class A common share of Tetra and one common share purchase warrant at a price of $1.03 per unit.

As part of the transaction and for Aphria to attain a 19.9% stake in Tetra, Tetra co-founders Andre Rancourt and Guy Chamberland have agreed to each sell 5 million shares each to Aphria.

“Aphria has been a major strategic partner since the inception of Tetra,” Chamberland, CEO of Tetra Bio-Pharma, said in a statement. “Their decision to substantially increase their holding in our company illustrates their confidence in our business model which is focused on taking a pharmaceutical pathway to the commercialization of cannabis and cannabinoid-derived products.”

READ: Aphria shares climb in pre-market after securing joint venture with brand manager Perennial

Following the sale, Chamberland and Rancourt will continue to hold 5 million shares each as Tetra moves forward.

“As for the sale of my shares to Aphria, this divestiture was done to accommodate Aphria and for personal tax and estate planning purposes following the sale of PhytoPain Pharma Inc., earlier this year,” Chamberland explained. “I continue to be one of the company’s major shareholders, and I am fully committed to executing Tetra’s business plan.”

READ: Aphria reports higher 1Q fiscal first quarter revenue and looks ahead to cannabis legalization in Canada

Aphria, which is headquartered in Leamington, Ontario, is a cannabis company specializing in the low-cost production of pharmaceutical-grade cannabis at scale.

Tetra Bio-Pharma, meanwhile, focuses on cannabinoid-based drug discovery and development and boasts a Health Canada approved and US FDA-reviewed clinical program aimed at introducing novel prescription drugs and treatments.

Tetra Bio-Pharma shares slipped 1% to C$1.03 while Aphria shares dropped 21% to C$8.30 in Monday morning trade in Canada.

 

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Mon, 03 Dec 2018 09:38:00 -0500 https://ca.proactiveinvestors.com/companies/news/210406/tetra-bio-pharma-wins-71m-in-financing-from-fellow-cannabis-company-aphria-210406.html
<![CDATA[News - Aphria shares climb in pre-market after securing joint venture with brand manager Perennial ]]> https://ca.proactiveinvestors.com/companies/news/208747/aphria-shares-climb-in-pre-market-after-securing-joint-venture-with-brand-manager-perennial-208747.html Aphria Inc (NYSE:APHA) shares were on the rise after clinching its joint venture with brand manager Perennial as it looks to create consumer-driven cannabis brands.

Edibles and marijuana-infused beverages have been all the rage lately, but the companies said the partnership will look beyond just those two segments to offer a wide range of wellness-focused cannabis products.

"The brands that stand the test of time are the ones created with an understanding of the marketplace, an original and effective answer to a consumer need, and a message that's relevant to people's lives," said Chris Lund, Perennial’s Chief Innovation Officer, in a press release.

Shares jumped more than 4% to US$13.18 in Wednesday pre-market and added about 2% in New York trading.

READ: Canadian cannabis company Aphria plans to list on NYSE to boost liquidity, investor interest

Perennial, a subsidiary of DATA Communications Management Corp, has more than two decades of experience under its belt.

It has partnered with brands like Royal Bank of Canada (NYSE:RY), Loblaw Companies Limited (TSE:L), McKesson Canada (NYSE:MCK), The Coca-Cola Company (NYSE:KO), and Canadian arm of The Home Depot Inc (NYSE:HD).

Aphria president Jakob Ripshtein appears confident that the partnership will propel the company forward, stating that the future of the cannabis industry will be driven by consumer-focused research and development.

The Ontario-based company, which made its debut on the New York Stock Exchange in October, produces pharmaceutical-grade medical cannabis.

 

Contact Lenore Fedow at lenore@proactiveinvestors.com

Follow her on Twitter: @LenoreMariee

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Wed, 07 Nov 2018 09:24:00 -0500 https://ca.proactiveinvestors.com/companies/news/208747/aphria-shares-climb-in-pre-market-after-securing-joint-venture-with-brand-manager-perennial-208747.html
<![CDATA[News - Pot stocks: a pause in the bull trend or a bursting of the bubble? ]]> https://ca.proactiveinvestors.com/companies/news/207878/pot-stocks-a-pause-in-the-bull-trend-or-a-bursting-of-the-bubble-207878.html On October 17, 2018, Canada became the only member of the Group of Seven (G7) countries to officially legalize the adult recreational use of marijuana. It was supposed to be a day of celebration for cannabis investors and marijuana company executives alike.  

Loui Anastaopoulos, the president of capital formation at TMX (the financial services company that runs the Toronto Stock Exchange), said this following the ringing of the opening bell that day by a group of cannabis executives gathered at the TSX:

“It’s historic what we’ve done here, and we’re proud to be sitting at the center of all this, to facilitate the growth of cannabis companies in Canada.”  

Unfortunately, Anastaopoulos’ enthusiasm and pride were unable to prop up the many cannabis stocks momentum traders and growth investors have been bidding to dizzying heights since mid-August.   

And in the three to four days following the full legalization of marijuana in Canada, the stocks of nearly all the most popular and well-known cannabis companies crashed between 15% and 30%.  

I’m a trader at heart. And that means never falling in love with the stocks or industries I’m trading, and always migrating to where the price action is best. And up until mid-October, the cannabis industry offered two months of picture-perfect price momentum.  

But over the past week or so, that’s begun to change.    

Most cannabis stocks have broken beneath their short and intermediate timeframe moving averages, suggesting that a period of consolidation and base building is needed before they can re-test their recent highs.

So, if you’ve been actively trading cannabis stocks because that’s where the momentum and growth have been since mid-August, then clearly you should be back on the sidelines.  

But what about the true believers?  

I’m thinking about the long-term cannabis investor that believes we’re in the early innings of what the cannabis sector will ultimately evolve into.  

If you view the cannabis sector through a multiyear lens, take heart in the fact that every successful secular growth story has endured bumps and bruises along the way to success. And the medical and recreational cannabis movement will be no different.

Calmer waters

In the two months leading up to the full legalization of recreational cannabis in Canada, stocks like Aphria (OTCBB: APHQF), Pyxus (NYSE: PYX), Canopy Growth (NYSE: CGC), and CannaRoyalty (OTCBB: ORHOF) rallied between 50% and 110%.  

Now, as frustrating as it may be for investors that were late to the party, it’s important to remember that stocks don’t go up or down. They go up and down.  

The bullish price action that surrounded the cannabis sector leading up to October 17, 2018, was initiated by investors, but then goosed and kicked into high-gear by momentum traders. And as momentum faded, so too did the traders that aggressively bid up the stocks.  

But strong momentum doesn’t have to be followed by an epic price collapse. Often, when momentum fades, stocks consolidate within an uncomfortably wide range until a new, more natural market is established. And that’s what is beginning to take shape today.  

The path forward

Short-term traders should remain on the sidelines, but continue to monitor the cannabis space for stabilization, base formations, and the eventual resumption of prior bull trends. But again, until price action improves, there’s no reason for you to be aggressively buying stock.  

Long-term investors, however, should be poring over their wish list and identifying companies that have been unfairly punished with the sector-wide rout. Ideally, you want to identify companies with scale, access to capital, and strong management teams. Companies like KushCo (OTCBB: KSHB), GrowGeneration (OTCBB: GRWG), iAnthus Capital Holdings (OTCBB: ITHUF), and Pyxus International (NYSE: PYX) are all names that fit this mold.    

The bottom line is much like we saw with the internet in the late 1990s and early 2000s, many of today’s cannabis companies will vanish or be gobbled up by larger operators over the next few years. And that means we need to vigilant when it comes to our risk management with short-term trades, and thoughtful and research focused when it comes longer term investments.  

Be opportunistic  

While many cannabis stocks have violated their short-term up trends and need time to heal, I do not believe we’ve seen a bursting or abandonment of the cannabis theme. And as new catalysts such as banking reform, more states legalizing the medical and recreational use of marijuana, traditional Wall Street firms begin issuing research, and positive data or opinions from the FDA on the benefits of CBD reach the light of day, we’ll likely see buyers return to the space in spades.  

Trusting that we’re in the early innings of the Green Revolution means long-term investors should wait for stocks on their shopping list to be knocked down by sector-wide selling before putting money to work. So, when hyped-up and over-publicized catalysts like the legalization of recreational cannabis in Canada playout and stocks come under pressure, don’t be afraid to lurk deep under the market and place opportunistic bids as the short-term momentum traders punch out and run for the hills.

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Thu, 25 Oct 2018 14:00:00 -0400 https://ca.proactiveinvestors.com/companies/news/207878/pot-stocks-a-pause-in-the-bull-trend-or-a-bursting-of-the-bubble-207878.html
<![CDATA[News - Canadian cannabis company Aphria plans to list on NYSE to boost liquidity, investor interest ]]> https://ca.proactiveinvestors.com/companies/news/207861/canadian-cannabis-company-aphria-plans-to-list-on-nyse-to-boost-liquidity-investor-interest-207861.html Canadian cannabis company Aphria Inc (TSX:APH, OTCQB:APHQF) has filed a form 40-F with US regulators to list on the New York Stock Exchange in a move that will boost liquidity and investor interest in the stock, if history is any guide.

The Leamington, Ontario-based company filed last week to list but has not yet set a date for its trading debut. Aphria’s listing would come on the back of another Canadian marijuana company Aurora Cannabis Inc’s (NYSE:ACB; TSX:ACB) much-hyped debut Tuesday on the New York Stock Exchange which was unfortunately weighed down by a broad market pullback.

The two Canadian cannabis companies follow Cronos Group Inc (NASDAQ:CRON, TSX:Cron) and Canopy Growth Corp (TSE:WEED, NYSE:CGC) in dual listing on both the Toronto Stock Exchange and a US exchange. Tilray Inc (NASDAQ:TLRY) headquartered in Nanaimo, Canada is uncommon in not also having a Canadian listing.

Aurora Cannabis CEO Terry Booth said a dual listing gave Canadian companies access to a broader group of institutional and retail investors.

"Our NYSE listing represents another important milestone that reflects our commitment to all stakeholders as we continue advancing domestic and international growth initiatives, which includes expanding our base of global institutional and retail investors," said Booth.

READ: Aphria reports higher 1Q fiscal first quarter revenue and looks ahead to cannabis legalization in Canada

Cronos, which listed on the Nasdaq in February, saw its daily trading volume jump from an average of 1.5 million in the week before its Nasdaq listing to a combined 12.8 million the week after, according to Bloomberg data. Canopy’s volume rose from 8.5 million the week before its May listing to 10.3 million after.

Aphria reported higher fiscal first-quarter revenues last week from strong sales. The company said in a statement revenue for the period ending on August 31, 2018, reached C$13,292, 10% higher than the prior quarter's C$12,026 and 117% higher than the same period last year.

Aphria CEO Vic Neufeld said the company "continued to ramp up our production capabilities" and moved "forward aggressively with the implementation of our automation infrastructure, which is expected to streamline production over the medium to longer terms."

"We believe the automation investment in particular will provide Aphria with a significant competitive advantage and further our industry-leading low-cost structure," said Aphria.

Aphria said Canadian-based production capacity is on schedule to reach 255,000 kgs per annum.

The company has supply agreements with every province in Canada and the Yukon Territory, ensuring access to Aphria products for 99.8% of the Canadian population.

Aphria has launched the company's initial portfolio of adult-use brands: Solei Sungrown Cannabis, RIFF, Good Supply, and Goodfields.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Thu, 25 Oct 2018 09:46:00 -0400 https://ca.proactiveinvestors.com/companies/news/207861/canadian-cannabis-company-aphria-plans-to-list-on-nyse-to-boost-liquidity-investor-interest-207861.html
<![CDATA[News - Pot primer: Your guide to legalized cannabis in Canada ]]> https://ca.proactiveinvestors.com/companies/news/207126/pot-primer-your-guide-to-legalized-cannabis-in-canada-207126.html The clock is ticking and Canadian cannabis legalization is on the doorstep. Simply put: it’s going to change many Canadians’ lives – from businesses to investing to technology to growers to tourism. The list is endless.

But with the potential boom comes potential pitfalls – from a possible stock bubble to impaired drivers, to police and workplace policies to hard discussions between parents and kids.

How will the country change? Will we leap, or limp over the line?

Proactive Investors put together a guide to go through the nuts and bolts questions when it comes to cannabis legalization in Canada: Where will it be sold? What are the rules? How much will it cost? What will implementation look like?

1. Where will it be sold?

The short, non-fun answer: it depends.

In British Columbia, arguably Canada’s most cannabis-friendly province and certainly the one with the most grey-market marijuana dispensaries, there is only one brick-and-mortar store officially opening on Oct. 17. And it's a town where few people live: Kamloops, BC: an interior city of 90,000 people. The population of British Columbia, by comparison, is 4.5 million. Greater Vancouver alone has a population of 2.5 million.

In short: brick and mortar stores are still to come in British Columbia. For most British Columbians on day one of Oct. 17, the rollout will be almost non-existent. 

In Ontario, Canada’s most populous province (13.6 million people), there are zero physical stores opening on Oct. 17 -- everything will be sold online via the government-run online retailer (with a $5 postal delivery charge to boot). 

The online store will be the only way for Ontario residents to legally buy cannabis for the next six months. The provincial Conservative government plans to license private companies to operate brick-and-mortar cannabis stores but they will not open until April 2019. 

The Ontario Cannabis Store will likely be the largest online seller of cannabis in Canada.

Other provinces differ: Alberta, Saskatchewan, Manitoba, Nova Scotia, Newfoundland and other provinces and territories have announced they will have physical stores, however, the rollout and implications of such stores are varied.

From a population perspective, Ontario is the province to watch. 

2. What are the rules?

Canadians will be allowed to buy limited amounts of fresh/dried cannabis, cannabis oil, cannabis seeds or cannabis plants from retailers that are authorized on Oct. 17  when Bill C-45, the Cannabis Act, becomes law.

Products, such as edibles, beverages, concentrates, etc., will not be legal on Oct. 17 but many of these are expected to be allowed in 2019.

On Oct. 17, consumers will be allowed to buy cannabis accessories including bongs, pipes, vaporizers, lockable stash boxes and grinders.

3. Will there be a supply shortage?

Probably. 

There are more than 135 publicly-traded cannabis companies in Canada. 

Aphria Inc (TSE:APH) (OTCMKTS:APHQF) has stated on record that it expects shortfalls

"There will not be any complete satisfaction by any of the provincial regulators out of the box," said Aphria's chief executive officer Vic Neufeld during an earnings call last week. 

"The pipeline fill is not going to be there. But that's just the short term."

READ: Aphria reports higher 1Q fiscal first quarter revenue and looks ahead to cannabis legalization in Canada

According to BC's Solicitor General and Public Safety Minister Mike Farnworth, it is expected that some popular strains may run dry. 

“Some strains or varieties, if they prove to be particularly popular – it’s like a small-scale winery...” said Farnworth to Global News. 

“But the reality is we will have the largest variety of cannabis products available anywhere in the country.”

4. What will happen to cannabis companies?

Labour shortages and other delays will affect cannabis supplies.

In short: there are 135 (or more) publicly traded cannabis companies in Canada, but many believe it's only a matter of time before that number becomes smaller, through consolidation and/or failure.  

"As we long maintained, the legalization of adult-use cannabis in Canada is a major inflection point for the industry and all licensed producers, Aphria included," said Neufeld.

5. What are the rules surrounding driving?

Again, it depends on where you live. Cannabis-impaired drivers can face fines, license suspensions and jail time.

Thanks to the Canadian federal government, a number of provinces will have the option of a new drug testing device in as it enforces laws about driving under the influence of cannabis.

In Quebec alone, the Public Security Ministry said in August it will offer financial support for police in Quebec who want to purchase the machines and help provide training for police to use the device appropriately.

In Montreal, it is reported that nearly 2000 officers have had training in terms of roadside detection tests. 

6. How much will cannabis cost?

Right now, that's unknown across all provinces and territories but in general, it should be between $7 and $10 a gram. A significant goal of legalization is to take down the black market, so officials are targeting a price that is competitive with illegal dispensaries and dealers but not so cheap that it encourages consumption. There will probably be a range of prices, depending on the quality of the cannabis.

In Nova Scotia, the government announced that a gram will cost anywhere between C$6.33 to C$10.99 after the Crown corporation unveiled its pricing strategy.

In New Brunswick, the price of dried flower cannabis will range from C$8.50 to C$15.50 per gram. 

Contact Katie Lewis at katie@proactiveinvestors.com
Follow her on Twitter: @kelewis

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Mon, 15 Oct 2018 12:52:00 -0400 https://ca.proactiveinvestors.com/companies/news/207126/pot-primer-your-guide-to-legalized-cannabis-in-canada-207126.html
<![CDATA[News - Aphria reports higher 1Q fiscal first quarter revenue and looks ahead to cannabis legalization in Canada ]]> https://ca.proactiveinvestors.com/companies/news/207001/aphria-reports-higher-1q-fiscal-first-quarter-revenue-and-looks-ahead-to-cannabis-legalization-in-canada-207001.html Canadian cannabis company Aphria Inc (TSX:APH) (OTCQB:APHQF) reported on Friday higher fiscal first-quarter revenues from strong sales as the company looked forward to the looming legalization of marijuana in the country next week.

The company said in a statement revenue for the period ending on August 31, 2018, reached C$13,292, 10% higher than the prior quarter's C$12,026 and 117% higher than the same period last year.

"As we long maintained, the legalization of adult-use cannabis in Canada is a major inflection point for the industry and all licensed producers, Aphria included," said company CEO Vic Neufeld.

Neufeld said the company "continued to ramp up our production capabilities" and moved "forward aggressively with the implementation of our automation infrastructure, which is expected to streamline production over the medium to longer terms."

"We believe the automation investment in particular will provide Aphria with a significant competitive advantage and further our industry-leading low-cost structure," he added.

Shares of Aphria in Canada was off 0.46% on Friday to C$19.61. In New York though, they were up 0.73% to $15.21.

READ: Aphria partners with Rapid Dose Therapeutics to develop dissolving oral cannabis strips

Among the company highlights Aphira pointed to are higher sales which "was driven primarily by increased wholesale orders, accounting for 313 kgs," a statement said.

Aphria said Canadian-based production capacity is on schedule to reach 255,000 kgs per annum. 

The company has supply agreements with every province in Canada and the Yukon Territory, ensuring access to Aphria products for 99.8% of the Canadian population. The company a representative agreement to be the exclusive sales representative for We Grow BC Ltd.

Aphria has launched the company's initial portfolio of adult-use brands: Solei Sungrown Cannabis, RIFF, Good Supply, and Goodfields. It has successfully divested all US cannabis assets and closed on a deal for a common share offering during the period to raise net proceeds of more than C$245 million

Aphria is a cannabis company which is involved in the low-cost production of safe, clean and pure pharmaceutical-grade cannabis. The company is based in Lemington, Ontario. 

Reporting by Rene Pastor, contactable on rene.pastor@proactiveinvestors.com

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Fri, 12 Oct 2018 10:41:00 -0400 https://ca.proactiveinvestors.com/companies/news/207001/aphria-reports-higher-1q-fiscal-first-quarter-revenue-and-looks-ahead-to-cannabis-legalization-in-canada-207001.html
<![CDATA[News - Aphria responds to talk that US tobacco giant Altria Group is looking to take a stake in the Canadian cannabis grower ]]> https://ca.proactiveinvestors.com/companies/news/206913/aphria-responds-to-talk-that-us-tobacco-giant-altria-group-is-looking-to-take-a-stake-in-the-canadian-cannabis-grower-206913.html Aphria Inc (OTCMKTS:APHQF) is not shooting down Wednesday's report in The Globe and Mail that the US tobacco giant Altria Group Inc (NYSE:MO) is looking to acquire a minority stake in the Canadian cannabis grower.

In a press release, Aphria said that it engages in discussions with potential strategic partners and investors from time to time and "there is no agreement, understanding or arrangement in place with a potential investor at this time.” Aphria will advise investors “of any material changes, if and when they occur” in keeping with disclosure requirements.

Aphria shares shot up Wednesday, closing up 14% higher at $15.30 after The Globe and Mail published a report that said Altria had expressed an interest in acquiring a minority stake with the intention of eventually holding a majority of the company’s shares.

READ: Tobacco powerhouse Altria in talks to acquire equity stake in Canadian cannabis grower Aphria, says The Globe and Mail

Altria and Aphria’s management have met on a number of occasions, with the most recent talks arranged on Monday, G&M said, citing sources.

A number of US companies in related industries are looking to orchestrate deals with Canadian cannabis companies given that recreational marijuana will be legal across Canada, beginning on October 17.

Chatter about Altria’s interest in Aphria follows on the heels of Constellation Brands Inc, the prominent US wine, liquor and beer company, (NYSE:STZ) making a $4 billion investment in Canadian cannabis company Canopy Growth Corp, which brings its stake in the company to 38%.

Altria shares were flat at $63.23 in Thursday's morning trading session while Aphria shares closed up 14% at $15.30 on Wednesday.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Thu, 11 Oct 2018 09:29:00 -0400 https://ca.proactiveinvestors.com/companies/news/206913/aphria-responds-to-talk-that-us-tobacco-giant-altria-group-is-looking-to-take-a-stake-in-the-canadian-cannabis-grower-206913.html
<![CDATA[News - Aphria partners with Rapid Dose Therapeutics to develop dissolving oral cannabis strips ]]> https://ca.proactiveinvestors.com/companies/news/204275/aphria-partners-with-rapid-dose-therapeutics-to-develop-dissolving-oral-cannabis-strips-204275.html There’s no one way to use cannabis. Consumers can pick a variety of methods from smoking to pill form to edibles.

Aphria Inc (TSX:APH, OTCQB:APHQF) has entered into a non-binding agreement with biotech Rapid Dose Therapeutics Inc for the rights to its QuickStrip products, a new delivery method for cannabis.

The QuickStrip technology incorporates cannabis into a fast-dissolving oral strip.

READ: Aphria partners with Schroll Flowers subsidiary to produce organic medical cannabis

"Partnering with Aphria is a natural fit for RDT as we bring our patent-pending proprietary technology to the medical and adult-use cannabis markets. Oral thin film strips are embraced by consumers everywhere as a safe and effective delivery device for low dose, high impact drug, vitamin, and personal use products, including cannabis,” said Rapid Dose Therapeutics CEO Mark Upsdell.

Aphria announced Tuesday that it was teaming up with Schroll Medical to cultivate organic medical cannabis.

Shares of the Ontario-based cannabis company jumped nearly 4% to US$14.62 in Wednesday afternoon trading.

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Wed, 05 Sep 2018 14:43:00 -0400 https://ca.proactiveinvestors.com/companies/news/204275/aphria-partners-with-rapid-dose-therapeutics-to-develop-dissolving-oral-cannabis-strips-204275.html
<![CDATA[News - Aphria partners with Schroll Flowers subsidiary to produce organic medical cannabis ]]> https://ca.proactiveinvestors.com/companies/news/204175/aphria-partners-with-schroll-flowers-subsidiary-to-produce-organic-medical-cannabis-204175.html As cannabis consumption moves further into the mainstream and reaches more customers, the market has evolved to meet the ever-changing tastes of consumers.

Cannabis company Aphria Inc (TSX:APH, OTCQB:APHQF) is partnering with Schroll Medical to cultivate organic medical cannabis.

Schroll Medical, a subsidiary of European flower producer Schroll Flowers, will hold an 85% interest in the partnership.

"We are pleased to share a background in cultivation, look forward to applying the expertise and knowledge from Aphria to produce the highest standard of organic medical cannabis to reach patients in need around the world,” said Carsten Schroll, founder of Schroll Flowers, in the company’s press release.

READ: Canadian medical marijuana company Aphria pegs C$225mln war chest to build new facilities

Aphria will provide €100,000 to the partnership in exchange for the remaining 15% interest. The company will also provide consultation on certification, cannabis genetics and strains and other areas of expertise.

The cannabis company will be in charge of distribution of the medical cannabis produced.

As per the agreement, Aphria may have the opportunity to increase its ownership interest to 50% and to reach full liquidity under certain conditions.

The partnership will be managed by the Aphria’s wholly-owned subsidiary Aphria Deutschland GmbH, or Aphria Germany.

READ: Tilray is the latest pot stock to come under attack from short-seller Andrew Left's Citron Research

"This marks another important step in advancing the availability of high-quality medical cannabis for across Europe and around the world," said Hendrik Knopp, managing director of Aphria Germany, in the company’s press statement.

The organic products are expected to be made available in Germany, Luxembourg , Switzerland and other emerging medical cannabis markets.

Its partner Schroll Medical has received its license for the cultivation of medical cannabis from the Danish Medicines Agency.

The first phase of construction is underway, which involves modifying its existing 9,000 square meter facility and building a new 1,000 square meter processing facility.

Shares of the Ontario-based cannabis company jumped more than 8% to US$14.01 in Tuesday afternoon trading.

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Tue, 04 Sep 2018 15:57:00 -0400 https://ca.proactiveinvestors.com/companies/news/204175/aphria-partners-with-schroll-flowers-subsidiary-to-produce-organic-medical-cannabis-204175.html
<![CDATA[News - Daily CryptoCann™ Report: Coinbase may soon trade coins as securities; Aphria expands into Latin America and the Caribbean ]]> https://ca.proactiveinvestors.com/companies/news/200978/daily-cryptocann-report-coinbase-may-soon-trade-coins-as-securities-aphria-expands-into-latin-america-and-the-caribbean-200978.html Popular cryptocurrency exchange Coinbase is one step closer to trading coins as securities.

The platform has been given the okay by US Securities and Exchange Commission and the Financial Industry Regulatory Authority to proceed with the acquisition of Keystone Capital Corp, Venovate Marketplace Inc and Digital Wealth LLC, according to a Bloomberg report.

The acquisitions will allow the firm to operate as a broker-dealer, offering security tokens while being subject to federal oversight.

The exchange is exploring allowing users to trade five new digital coins: Cardano, Basic Attention Token, Stellar, Zcash and Ox.

READ: Daily CryptoCann Report: IBM signs US$740mln blockchain deal with Australia’s government; Sweet Leaf loses all of its cannabis licenses

IBM Corp (NYSE:IBM) is also getting into the cryptocurrency game.

The tech giant is partnering with fintech start-up Stronghold to launch a cryptocurrency attached to the US dollar, according to a CNBC report.

Known as “Stronghold USD,” the digital token aims to reduce volatility by connecting itself to a government-backed currency.

The digital currency will be backed by Federal Deposit Insurance Corporation-insured US dollars and reserved will be held by Prime Trust, a blockchain-centric asset manager.

In other big-name tech news, Oracle Corporation (NYSE:ORCL) has launched its blockchain cloud service.

Known as the Oracle Blockchain Cloud Service, the platform is designed to track transactions and goods through global supply chains, as per Oracle’s press release.

“Blockchain promises to be one of the most transformative technologies of our generation,” said Amit Zavery, executive vice president of Oracle Cloud Platform.

Arab Jordan Investment Bank, CargoSmart, Indian Oil and TradeFin have adopted an earlier version of the service.

The Cann Report

Up north, Aphria Inc (TSX:APH, OTCMKTS:APHQF) is expanding into Latin America and the Caribbean.

The Canadian cannabis company announced plans to acquire assets in Colombia, Argentina, Jamaica and Brazil through a share purchase agreement with Scythian Biosciences Inc, as per a company press release.

Aphria will acquire 100% of the shares of LATAM Holdings Inc, a subsidiary of Scythian, for an undisclosed price.

Shares of the Ontario-based company were down more than 2.5% to C$10.63 in Tuesday afternoon trading.

READ: Crop Infrastructure Corp tenant at The Park in Washington state expects harvest within six weeks

Back in the States, a Canadian cannabis company is expanding into the Nevada market.

C21 Investments Inc (CNSX:CXXI) is making its latest move into the US marijuana market through its US$50mln acquisition of Silver State Relief and Silver State Cultivation.

Last month, the Vancouver-based company acquired Swell Companies, a marijuana extraction company in Oregon.

The company said it plans to spend an additional US$10mln on expansion into Nevada.

Shares of C21 fell more than 10% to C$2.05 in Tuesday afternoon trading.

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Tue, 17 Jul 2018 11:38:00 -0400 https://ca.proactiveinvestors.com/companies/news/200978/daily-cryptocann-report-coinbase-may-soon-trade-coins-as-securities-aphria-expands-into-latin-america-and-the-caribbean-200978.html
<![CDATA[Media files - Daily CryptoCann Report: PotCoin may sponsor Dennis Rodman’s trip to North Korea-U.S. summit ]]> https://ca.proactiveinvestors.com/companies/stocktube/9533/daily-cryptocann-report-potcoin-may-sponsor-dennis-rodmans-trip-to-north-korea-us-summit-9533.html Fri, 08 Jun 2018 16:41:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/9533/daily-cryptocann-report-potcoin-may-sponsor-dennis-rodmans-trip-to-north-korea-us-summit-9533.html <![CDATA[News - Daily CryptoCann Report: PotCoin may sponsor Dennis Rodman’s trip to North Korea-U.S. summit ]]> https://ca.proactiveinvestors.com/companies/news/198562/daily-cryptocann-report-potcoin-may-sponsor-dennis-rodmans-trip-to-north-korea-us-summit-198562.html The Crypto Report

It was a rough end to the week for cryptocurrency with all of the top five coins in the red.

EOS (EOS-USD) was the top decliner of the day, falling nearly 4% to US$14.04.

Bitcoin Cash (BCH-USD) was down nearly 2% to US$1,122.83 followed by Ripple (XRP-USD) which fell more than 1.5% to US$0.66.

Ethereum (ETH-USD) was at US$598.97 while Bitcoin (BTC-USD) was at US$7,640.98, both down less than 1%.

As the meeting between the U.S. and North Korea approaches, marijuana cryptocurrency PotCoin has offered to sponsor Dennis Rodman’s trip to the summit in Singapore, according to a Coin Telegraph report. The coin maker sponsored Rodman’s trip to the communist country in 2017 and the former basketball star wore a shirt with the PotCoin logo. The digital coin provides legalized cannabis companies with blockchain-secured transactions. Rodman first visited North Korea in 2013 with the Harlem Globetrotters and built up a friendship with its leader Kim Jong Un, who reportedly is a big fan of 1990s Chicago Bulls.

READ: Daily CryptoCann Report: Crypto art auction features Andy Warhol painting; Canada Senate may legalize recreational marijuana

DPW Holdings Inc (NYSE:DPW) has paid off some of its debt using Bitcoin. Its subsidiary Super Crypto Mining Inc mined the Bitcoin that allowed the holdings company to pay off US$500,000 in debt.

“Having a lender provide capital for our acquisitions while our company is able to mine and use cryptocurrency to reduce debt that is used to purchase an asset, marks an important moment in the transactional use of Bitcoin for both the Company as well as the crypto community,” said CEO Milton “Todd” Ault III.

The Cann Report

The North American Marijuana Index, which tracks the leading cannabis stocks in the U.S. and Canada, saw a 2% loss.

The Canadian Senate voted yes on Bill C-45, legalizing recreational cannabis for people over the age of 18.

Aphria Inc (TSE:APH) announced its investment into Ontario following the vote. The medicinal marijuana company plans to raise C$225mln to build new facilities in Ontario, including a C$5mln extraction facility that will produce cannabis oils.

"The Extraction Centre of Excellence will give Aphria a significant competitive advantage in cannabis concentrates, which are expected to be a significant product category," said CEO Vic Neufeld in a statement. Shares of the cannabis company fell slightly to C$11.66.

Marijuana investment fund Phyto Partners has closed its second fund, raising US$14mln. Phyto II has begun investing in two portfolio companies, doctor network Marijuana Doctor and business management platform Flowhub.

READ: Canadian medical marijuana company Aphria pegs C$225mln war chest to build new facilities

"We are speaking to individuals and family offices that want to invest in the cannabis industry but are still unsure of the laws and fear that risks are unable to be mitigated as with other investments,” said Phyto’s managing partner Larry Schnurmacher.

Schnurmacher says that over the last few months, he’s seen a willingness to accept some unknowns in order to get involved in the growing industry early.

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Fri, 08 Jun 2018 12:10:00 -0400 https://ca.proactiveinvestors.com/companies/news/198562/daily-cryptocann-report-potcoin-may-sponsor-dennis-rodmans-trip-to-north-korea-us-summit-198562.html
<![CDATA[News - Canadian medical marijuana company Aphria pegs C$225mln war chest to build new facilities ]]> https://ca.proactiveinvestors.com/companies/news/198538/canadian-medical-marijuana-company-aphria-pegs-c225mln-war-chest-to-build-new-facilities-198538.html With the Canadian Senate voting ‘Yes’ Thursday to legalize recreational cannabis, Canadian medical marijuana growers are all chasing first-mover advantage and global expansion. Aphria Inc (TSE:APH) was quick off the block with its announcement Thursday that it will make a big investment in Leamington, Ontario.

The company, which has an eye on global expansion, said it is raising C$225mln to pay for new cannabis facilities in Canada, as well as potential acquisitions. Some of the funds will be plowed into a new C$55mln extraction facility in Leamington, Ontario that will use a variety of methods to produce concentrated cannabis products like oils.

READ: A game-changing vote: Canadian senate votes ‘Yes’ to legalize recreational cannabis

"The Extraction Centre of Excellence will give Aphria a significant competitive advantage in cannabis concentrates, which are expected to be a significant product category," said Aphria CEO Vic Neufeld, in a statement. "This facility will be the centre of industry-leading R&D and commercial production of next generation cannabis concentrate products."

The Canadian firm also said it plans to spend an additional C$20mln at its Aphria Diamond facility to increase capacity by 20 tonnes annually and allow for alternative growing techniques, and C$10mln to add 10 tonnes of capacity to its Aphria One operation.

Canadian producers like Aphria are pushing really hard to take that first-mover advantage as the country gets all set to legalize marijuana sales. The Canadian Senate voted Thursday to pass Bill C-45 — the landmark legislation to legalize recreational marijuana — by a vote of 56 to 30, with one abstention.

Aphria is one of Canada's low-cost producers and sells medical cannabis. It is in Leamington, Ontario, the greenhouse capital of Canada.

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Fri, 08 Jun 2018 08:26:00 -0400 https://ca.proactiveinvestors.com/companies/news/198538/canadian-medical-marijuana-company-aphria-pegs-c225mln-war-chest-to-build-new-facilities-198538.html