When we last mentioned APHRIA INC COM NPV (OTCMKTS:APHQF) here on Street Register, we were discussing how the company was moving forward with its plans for expansion into US cannabis markets via strategic investments.
This week, we wanted to circle back around to highlight the big news of a major deal the company scored North of the border, with a Health Canada-licensed medical cannabis provider, as well as some other exciting news for an APHQF partner.
APHRIA INC COM NPV (OTCMKTS:APHQF) through its subsidiary Pure Natures Wellness Inc. entered into a major wholesale supply agreement with HydRx Farms, Ltd. (o/a Scientus Pharma). Under the terms of the Agreement, Aphria is committing to supply over 25,000 fully grown medical cannabis plants over the next 12 months to Scientus Pharma.
The first delivery, under the agreement will occur in the middle of Aphria’s second quarter of 2018. Aphria expects to generate over $1.2 million of revenue from the wholesale supply agreement in each full quarter of shipments, with gross margins consistent with previously executed wholesale agreements.
Scientus Pharma, a vertically-integrated biopharmaceutical company, is raising the bar of cannabinoid products from medical-grade to pharmaceutical-grade. Leveraging its proprietary, patent-pending formulation and processing technologies, Scientus Pharma is committed to leading the medical cannabis market towards pharmaceutical standards in manufacturing, formulations and dosing.
“Scientus Pharma shares our vision for providing high-quality products to medical cannabis patients, which is enabled by our 509-step Seed-to Sale quality assurance program,” said Vic Neufeld, Chief Executive Officer of Aphria. “Through this agreement, Scientus Pharma will get access to clean and safe cannabis, which is necessary in the biopharmaceutical cannabis industry. In return, Aphria will benefit from guaranteed product distribution advancing Aphria’s growth strategy.”
“Scientus Pharma intends to leverage this key raw material supply contract to help it lead the evolution of cannabinoid products from medical-grade to pharmaceutical-grade,” said Trevor Folk, Chief Executive Officer of Scientus Pharma. “Our proprietary extraction technology platform has solved the resin consistency issue that has here-to-for prevented that scientific advancement, and it is the foundation for Scientus Pharma’s pipeline of novel products.” (Source: Marketwired)
The other announcement that came over the American Independence Day holiday was that APHQF partner Tokyo Smoke is opening a flagship Canadian retail location and cafe on Thurs., July 20 at 668 Queen St. W., in the heart of Toronto’s vibrant West Queen West neighborhood. The flagship location is just one of several bricks-and-mortar stores that will open across North America in 2017.
Open from 7 a.m. to 7 p.m. daily, shoppers can expect Tokyo Smoke’s sophisticated take on cannabis collectibles, custom apparel lines, unique accessories and an extensive product mix.
To celebrate the opening of the new retail store, the space will also offer new ‘Tokyo Smoke x Queen West’ rolling papers (while supplies last), which feature the artwork of Dahae Song. This is the first in a series of store-specific papers, based on the popular ‘It’s Lit’ originals that come complete with filter tips and a magnetic closure. (Source: Marketwired)
With the US cannabis markets lagging a bit midway through the year on a cloudy future for federal attitudes toward states’ rights and legalization, we like to track plays that also operate in Canada, which is on the fast track to nationwide legalization.
Shares of APHQF have been on a sustained rebound for the past several sessions, so we’ll definitely want to stay on its trail. 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.