Aphria Scores C$100 Million Deal

Ontario-based Aphria Inc. (APHQF) announced that it entered into an agreement with Clarus Securities on behalf of a group of underwriters to purchase on a “bought deal” 7,272,740 common shares at a price of C$13.75 for proceeds of approximately C$100,000,175 or roughly $77 million in today’s exchange rates.

The underwriters have an over-allotment option to purchase an additional 1,090,911 shares within 30 days for a total gross proceeds of C$115,000,201 or $89 million by today’s rates. The offering is expected to close on or around January 9. The proceeds will be used to  “finance the construction of additional cannabis production facilities globally in both foreign and Canadian jurisdictions where cannabis is legally permitted as well evaluating strategic acquisitions and investments and other industry related transactions, and for general corporate purposes.”

Aphria is one of Canada’s lowest cost producers, produces, supplies and sells medical cannabis. Located in Leamington, Ontario, the greenhouse capital of Canada. Aphria is truly powered by sunlight, allowing for the most natural growing conditions available.

The company also announced last week that it had entered into an agreement to be a medical cannabis supplier to online seller Shoppers Mart. “We have an impeccable record cultivating and producing high-quality, medical-grade cannabis,” said Vic Neufeld, CEO of Aphria. “These traits make us a strong partner for an organization looking to serve and support Canadian patients.”

According to a company statement, “Subject to Health Canada’s approval of Shoppers Drug Mart’s application to be a licensed producer, under the terms of the agreement the Company will supply Shoppers Drug Mart with Aphria-branded medical cannabis products. It is expected the products will be sold online, as Canadian regulations currently restrict the sale of medical cannabis in retail pharmacies.”

The stock lately traded on the OTC Market at $11.19, down from its 52-week high of $11.98, but the stock has been on a tear. Aphria stock was trading at $5.39 in October and just recently hit its 52-week high.


Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.


  • David

    January 5, 2018 at 10:44 am

    Hello Debra,

    Just want to remind you the number of “a total gross proceeds of C$155,000,201” is incorrect. I think it’s a typo of “C$115,000,201”. FYI.




    • Debra Borchardt

      January 6, 2018 at 3:48 pm

      It was a typo and it has been fixed. Thanks for the feedback.


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