The Canadian cannabis market is heating up with the potential changes with its laws, which could potentially mean legalization of adult recreational and medicinal use of cannabis throughout all of Canadia. Consequently, APHRIA INC COM NPV (OTCMKTS:APHQF) could ride this wave of growth, and it’s poised to rise with its recent developments.
If you haven’t heard of Aphria Inc yet, it’s one of Canada’s lowest cost producers, engaged in producing, supplying and selling medical cannabis. According to the company, it’s truly powered by sunlight, allowing for the most natural growing conditions available. Moreover, Aphria is also focused on providing pharma-grade medical cannabis, superior patient care while balancing patient economics and returns to shareholders. That in mind, Aphria is the first publicly- traded licensed producer to report positive cash flow from operations and the first to report positive earnings in consecutive quarters.
Let’s move onto some company news. APHRIA INC COM NPV (OTCMKTS:APHQF) recently announced that it made an additional investment of $3M in Copperstate Farms Investors. That said, this investment could potentially advance its capital expenditure program related to extractions, lighting and power generation. Consequently, the investment increases Aphria’s membership units in Copperstate Farms from 10% to 18.5% of those issued.
Now, this could increase Aphria’s exposure to the Arizona medicinal marijuana market. If you’ve never heard of Copperstate, the company owns approximately 1.7M square feet of greenhouses in Snowflake, Arizona and plans to bring approximately 348,000 square feet, into medical cannabis production in the fall of this year.
Moving on, Copperstate recently received a special-use permit for cannabis production in its greenhouse, by the Town of Snowflake. Copperstate projects that its expanded operations are capable of annualized production of approximately 18K kilograms. The current spot price for wholesale bud in the Arizona cannabis market is approximately $3,300 per kilogram. Copperstate has secured 90 different marijuana varieties for eventual offer to its customers. Several of the varieties are currently being tested to determine consumer demand and optimal growing metrics.
According to Aphria Chief Executive Officer Vic Neufeld, “Our expanded investment in Copperstate Farms Investors increases Aphria’s exposure to the particularly attractive Arizona medical cannabis market.”
Aphria CEO continued, “Our partnership with Investors combines Aphria’s extensive agriculture and pharmaceutical experience with Copperstate Farms’ strong operational expertise, all while strengthening Copperstate’s ability to serve Arizona’s approximately 115,000 medical marijuana patients. In all, we believe this important partnership has significant long-term growth potential for Aphria.”
Not only that, but Aphria’s common shares will continue to trade under the symbol “APH”, on the Toronto Stock Exchange now. That said, this could increase brand recognition and attract new investors.
Aphria Chief Executive Officer stated, “Aphria’s listing on the TSX represents a major milestone in our strategic growth plan, helping to increase trading liquidity, access a growing investor base interested in the cannabis industry, and raise capital for further investments…As one of Canada’s leading cannabis companies, we are excited about the opportunities in this rapidly growing market to drive shareholder value and continue Aphria’s success story. The TSX is the premier listings destination and this achievement highlights the strength of our experienced management and team, our commitment to providing safe, quality products and our positive growth trajectory.”
That said, you might not want to miss any developments on APHQF, if you haven’t been keeping up with the stock. However, if you’re busy all day and don’t have time to keep up with news, you might want to sign up to our free newsletter. All you have to do is provide us with your email, and we’ll send you updates, if any, on APHQF.