APHRIA INC COM NPV (OTCMKTS:APHQF) to Obtain Massive Funding for Expansion


APHRIA INC COM NPV (OTCMKTS:APHQF) took a huge step toward furthering its plans for expansion in April, announcing major combined debt and equity fundraising measures.

At the end of last week, the stock itself had tapered back to bounce off of a low of 4.30, and appears to be gearing up for an upswing. We’ll want to keep a close eye on this play, which is one that we’ve already seen big moves from in the past. Between December and early April it ran from the $3-range to the $6-range.

The financing deals that were unveiled by APHRIA INC COM NPV (OTCMKTS:APHQF) which is a Health Canada Licensed Producer of medical cannabis products, totaled a $100 million raise, including a $75 million bought deal equity financing and $25 million in debt financing through a five-year term loan. This is the first time Aphria has raised both debt and equity simultaneously.

The Company expects that 50% of the net proceeds of the Offering will be allocated towards the currently unfunded portion of Part IV Expansion, with the balance being allocated between the working capital necessary to support the Company once the Part IV expansion is complete and strategic investments.

“Through this raise, we are not only looking at the needs of today, but what Aphria is going to need to do in the years ahead to dominate the market. When completed in 2018, our four-part expansion plan is expected to supply more than 75,000 kg of high-quality cannabis at one of the lowest costs in the industry. We are well positioned to continue to provide shareholder value and meet the increasing consumer demand for medical and recreational marijuana,” ,” said Vic Neufeld, Chief Executive Officer.

As part of the raise, Aphria entered into an agreement with Clarus Securities Inc., on behalf of a syndicate of underwriters (collectively, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a “bought deal” basis, 11,538,480 Common Shares (the “Common Shares”) of the Company at a price of $6.50 per Common Share (the “Offering Price”) for aggregate gross proceeds to the Company of $75,000,120 (the “Offering”).

The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 1,730,772 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 $86,250,138.

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, 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. The deal is expected to close on May 9, 2017 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX.

The remaining portion of the raise is comprised of a 5-year, $25 million term loan with WFCU Credit Union (“WFCU”) bearing interest at 3.95% and a 15-year amortization (“Debt Financing”). The facility will be entered into on May 9, 2017. (Source: Marketwired)


The major moves that APHQF have been making on financing their plans to grow along with the blossoming Canadian cannabis market are too huge to ignore! We’re going to want to continue tracking this stock as closely as we have in recent months. We’ll stay up on any further developments with APHQF and pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free smallcap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below. Subscribe now!

Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in APHQF stock, short or long.