APHRIA INC COM NPV (OTCMKTS:APHQF) Partner Exceeds Funding Expectations

1089

When we last mentioned APHRIA INC COM NPV (OTCMKTS:APHQF) here on Street Register, we were discussing a major deal the company had struck with a Health Canada-licensed medical cannabis provider, as well as some other news. That wholesale agreement with HydRx Farms, Ltd was for over 25,000 fully grown medical cannabis plants to be supplied this year.

Shortly thereafter, the company posted gleaming results on its quarterly report that saw revenues and profits rise considerably over the same period in 2016.

On that note, the CEO of APHRIA INC COM NPV (OTCMKTS:APHQF) Vic Neufield had this to say:  “We capped off another exceptional year at Aphria, with increased earnings and lowered all-in production cash costs that provides us with a considerable competitive advantage. We increased our capacity expectations, continued to license the use of the Aphria Know-How System to expand our proven operational expertise, made progress on our expansion into the US market – all while maintaining our commitment to delivering clean and safe cannabis. The investments and progress we made in 2017 have positioned Aphria for continued profitable growth, in both the short and long term.”

Mr. Neufield continued, “As the medical marijuana industry rapidly expands, we believe there is a need to establish a consistent, responsible and transparent definition for licensed producers to calculate their costs to produce dried cannabis per gram. To ensure an accurate peer to peer comparison of this important metric, we are proposing the establishment of an industry standard definition for costs that includes all costs related to the production of cannabis, including quality control costs.” (Source: Marketwired)

This week we learned that Aphria led the current funding round for its partner, Tokyo Smoke, and that it is oversubscribed, and expected to exceed the initial target of $5 million CAD. Final close of its Series B is expected by the end of August 2017, and the proceeds will assist with Tokyo Smoke’s vision to be Canada’s leading cannabis brand.

“Almost one year ago, we partnered with Aphria on a first-of-its kind cannabis deal in Canada. Today, we are incredibly grateful to welcome Aphria to Tokyo Smoke as shareholders, as we continue to build the largest cannabis related retail infrastructure in Canada. The outsized investor demand suggests that leaders in the cannabis industry like Green Acre Capital agree Tokyo Smoke is positioned to become a category defining brand in cannabis,” says Alan Gertner, co-founder and CEO of Tokyo Smoke. “As Canada moves towards legalization, we believe this country will model modern cannabis experiences and Tokyo Smoke will remain at the forefront of that experience.” (Source: Marketwired)

Many questions and concerns have arisen for the domestic cannabis markets, especially while outspoken marijuana opponent Jeff Sessions heads up the Department of Justice, but no such element affects the Canadian cannabis landscape. If anything, it strengthens their positions as an investment alternatives to their less certain counterparts to the south. APHQF is a Canadian cannabis play we’ve followed for a while and will continue to do so as Canada awaits nationwide legalization. While its true there are legal and operational challenges associated with ending prohibition, but Canadian lawmakers have until next July to iron those out, and then Canada officially goes green. Stay on top of the story with us. 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.

 

 

 

LEAVE A REPLY