Aphria (company)

Aphria Inc.
Public
Traded as TSX: APH
S&P/TSX Composite Component
Industry Health Care
Founded 2014
Founders

Cole Cacciavillani

John Cervini
Headquarters Leamington, Ontario, Canada
Key people

Vic Neufeld (President and Chief executive officer)

Cole Cacciavillani
Products Medical Cannabis
Revenue Increase C$ 20 million[1] (2017)
C$ -1 million[1] (2017)
Increase C$ 4 million (2017)
Total assets Increase C$ 316 million[1] (2017)
Total equity Increase C$ 274 million[1] (2017)

Aphria, Inc is a Canadian medical cannabis company. It is listed on the Toronto Stock Exchange (symbol APH) and the U.S. over the counter market (symbol: APHQY}}, and has a market capitalization of $3 billion (as of January 2018).[2] Aphria means agreeable in Celtic.[3]

History

Aphria was founded in 2014 by Cole Cacciavillani and John Cervini, who were Leamington greenhouse operators.[4] Its CEO, Vic Neufeld, was formerly the CEO of Jamieson Laboratories, a Canadian vitamin company.[3] It was originally listed on the Toronto Venture Exchange. It graduated from the Toronto Venture Exchange to the Toronto Stock Exchange in March 2017,[5] and joined the S&P/TSX Composite Index in December 2017. In 2014, Aphria was granted a license to produce and sell medical cannabis by Health Canada.[4] Its first wholesale shipments were in April 2015. Also in April 2015, it announced it would double the size of its greenhouse.[6] In 2016, it announced a partnership with Tokyo Smoke, a Toronto lifestyle brand.[7] In April 2017, Aphria announced a US expansion strategy. As a result, there was some concern that Aphria might be delisted from the Toronto Stock Exchange or face other sanctions, because of the uncertain legal status of cannabis in the US.[8] In December 2017, Aphria announced that Shoppers Drug Mart, a Canadian pharmacy, would sell its production online.[9]

In January 2018, Aphria agreed to take over Broken Coast Cannabis, a Vancouver Island cannabis producer, for $230 million in cash and stock.[10] Also in January 2018, Aphria agreed to purchase Nuuvera, a Brampton-based cannabis company, for $826 million.[11] Nuuvera was acquired in part due to its market position internationally, especially in Germany and Italy. When the deal closed in March 2018, it was valued at only $425 million, due to the lower value of Aphria's stock and the reduction of the cash offer of the deal.[12] There was some controversy due to the undisclosed ownership stake of several Aphria insiders in Nuuvera, which they did not disclose.[13]

In May 2018, Aphria reached a deal with Southern Glazer's Wine & Spirits for that company to distribute Aphria's recreational cannabis products in Canada.[14] In July 2018, Aphria announced it would acquire several South American cannabis companies for about $200 million in a deal with Scythian Biosciences, a closely related company sometimes described as an acquisition arm of Aphria.[15]

Operations

Aphria runs a greenhouse to produce cannabis in Leamington, Ontario. It is backed in part by the Delavaco Group, a private equity firm.[15]

See also

References

  1. 1 2 3 4 "Aphria Inc". TMX Money. QuoteMedia. Retrieved 21 February 2018.
  2. ↑ "Change in U.S. marijuana policy casts uncertainty over Canadian industry". The Globe and Mail. Retrieved 2018-01-11.
  3. 1 2 "From vitamins to pot: A CEO's new growth plan". The Globe and Mail. 2014-06-03. Retrieved 2018-01-11.
  4. 1 2 "The new cash crop". Windsor Star. 2014-12-21. Retrieved 2018-01-11.
  5. ↑ "Leamington medical pot producer Aphria hits TSX". CBC News. Retrieved 2018-01-11.
  6. ↑ "Aphria Medical Marijuana to double its Leamington operation". CBC News. 2015-04-02. Retrieved 2018-01-11.
  7. ↑ Pin, Louis (2016-10-21). "Entrepreneur wants to bring elegance to pot". Chatham Daily News. Retrieved 2018-01-11.
  8. ↑ Ligaya, Armina (2018-01-10). "Pot company Aphria stands by U.S. investment, despite Trump admin. crackdown, delisting threat". The Toronto Star. ISSN 0319-0781. Retrieved 2018-01-11.
  9. ↑ "Pot Grower Aphria Surges After Its Online Pharmacy Sales Pact". Bloomberg.com. 2017-12-04. Retrieved 2018-01-11.
  10. ↑ "Aphria buying Broken Coast Cannabis for $230M in stock and cash | CBC News". CBC. Retrieved 2018-05-09.
  11. ↑ "Aphria Buys Nuuvera for $670 Million as Pot Deals Heat Up". Bloomberg.com. 2018-01-29. Retrieved 2018-01-30.
  12. ↑ "Aphria closes $425-million Nuuvera deal as international strategy takes shape". Financial Post. 2018-03-23. Retrieved 2018-04-16.
  13. ↑ "Aphria, Nuuvera deal prompts questions about disclosure rule gap". The Globe and Mail. 2018-03-27. Retrieved 2018-04-16.
  14. ↑ "Aphria strikes deal with Southern Glazer's on cannabis distribution - Article - BNN". BNN. 2018-05-17. Retrieved 2018-05-20.
  15. 1 2 "Aphria announces proposed acquisitions in Latin America, Jamaica worth around $200 million". Financial Post. 2018-07-17. Retrieved 2018-08-17.
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