Aphria Inc. Announces $80 Million Deal

Canadian-based Aphria Inc. (APHQF) announced that it has entered into an agreement with Clarus Securities Inc., to purchase, on a “bought deal” basis, 11,034,500 Common Shares of Aphria at a price of C$7.25 per share for gross proceeds of C$80,000,125. The deal is expected to close on or about November 7.

Aphria intends to use the money to develop infrastructure, including the purchase of capital and other equipment, plus to fund the expansion of its footprint in Canada and other strategic investments, and for general working capital purposes.

According to a statement, “The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 1,655,175 Common Shares at the Offering Price, exercisable in whole or in part at any time for a period ending 30 days from the closing of the Offering. In the event the over-allotment option is exercised in full, the aggregate gross proceeds of the Offering will be C$92,000,144.”

Ahpria’s stock on the OTC Markets was trading at $6.32, not far from its 52-week high of $6.60. On the Toronto Exchange, the stock is trading at C$7.92 and that is also not too far off from its 52-week high on that exchange of C$8.77. The company’s stock popped when it recently reported a very solid quarter of earnings.

Aphria is one of Canada’s lowest cost producers, produces, supplies and sells medical cannabis. Located in Leamington, Ontario,  Aphria is powered by sunlight, allowing for the most natural growing conditions available.  Aphria is the first public licensed producer to report positive cash flow from operations and the first to report positive earnings in consecutive quarters.

The Common Shares will be offered by way of a short form prospectus to be filed in each of the provinces of Canada, other than the Province of Quebec, by way of a private placement in the United States, and in those jurisdictions outside of Canada and the United States which are agreed to by the Company and the Underwriters, where the Common Shares can be issued on a private placement basis, exempt from any prospectus, registration or other similar requirements.




One comment

  • Nathan

    October 17, 2017 at 11:45 am

    So what does this mean for stock price? Stock is currently down 14%


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