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

Women, minority execs show few gains in U.S. cannabis industry, according to the latest data from the MJBiz Diversity, Inclusion and Equity Report. Get your copy here.

One of Canada’s largest medical marijuana producers announced a stock-purchase deal to raise 100 million Canadian dollars ($77.7 million) in capital, which it intends to apply to the construction of new production facilities globally and in Canada.

To date in fiscal 2017, Aphria has raised CA$237 million, CFO Carl Merton told Marijuana Business Daily. This does not include the most recent deal, as it will close in 2018.

Leamington, Ontario-based Aphria also said in a news release it has given the underwriters involved in the transaction the option to purchase an additional CA$15 million worth of company stock, which would bring the total to $CA115 million.

Flush with money, Aphria said it is evaluating strategic acquisitions and investments.

The company – traded on the Toronto Stock Exchange under the symbol APH – has been stockpiling cash this year to fund rapid expansion ahead of adult-use legalization in Canada.

The company’s other recent raises include:

  • Up to CA$92 million in October for the development of infrastructure and the expansion of its geographic footprint in Canada.
  • Up to CA$111 million in April to expand Aphria’s production capacity.
  • Up to CA$57 million in February, 80% of which was allocated to facility expansion and the rest toward strategic investments.

The underwriters in the latest deal agreed to purchase on a bought-deal basis 7.27 million Aphria shares for CA$13.75 apiece, giving the transaction a value of CA$100 million.

The offering is expected to close Jan. 9.

To sign up for our weekly Canada marijuana business newsletter, click here.