On the same day Aphria shares slid more than 13% over delisting fears, the Leamington, Ontario-based company announced a deal to raise up to 92 million Canadian dollars ($73 million) in capital.
The new financing, announced Tuesday, came a day after the TMX Group, parent of the Toronto Stock Exchange and the TSX Venture Exchange, said that marijuana companies doing business in the United States could be delisted.
Aphria, trading on the TSE as APH, owns Liberty Health Sciences, which acquires and operates U.S.-based companies in the medical cannabis market.
In an interview with the Canadian Press, Aphria’s chief executive Vic Neufeld called the TMX’s move “very irresponsible,” and noted that he has no intention of moving Aphria to the smaller marijuana stock-friendly Canadian Securities Exchange, which allows cross-border marijuana investments.
Under Aphria’s funding pact, underwriters have agreed to purchase 11 million shares of the company at a price of CA$7.25, equivalent to CA$80 million. The underwriters have an option to purchase another 1.6 million shares for CA$12 million.
The company said it intends to use the proceeds for the development of infrastructure and the expansion of its geographic footprint in Canada.